1. What are hedged orders?
Hedged positions allow you to hold a long and short position on the same asset at the same time. This is useful for traders using complex strategies such as breakout trading or arbitrage.
2. How to enable hedging mode on popular exchanges?
Binance
Example in screenshots on Binance
1. Go to the Futures tab.
2. In the upper right corner, click Settings (gear icon).
3. Select Position Mode and switch to Hedging.
4. Now you can open long and short positions simultaneously.
Bitget
1. Open the Futures section.
2. Go to Settings and select Position Mode.
3. Select Hedged Mode.
4. Confirm the changes and start trading in both directions.
Bybit
1. Go to the Futures tab.
2. In the settings, select Position Mode.
3. Select Two-Way Mode (Hedge Mode).
4. After activation, you can open long and short positions for the same coin.
3. Examples of trades, price is current at the time of writing.
Example 1: TRX/USDT (futures)
Long: Buy TRX at 0.249 USDT with 5x leverage.
Short: Open a short position at 0.249 USDT with the same leverage.
Result: If the price goes up, we will close the long with profit; if down — we will profit on the short.
Example 2: BTC/USDT (futures) (price is current at the time of writing).
Long: Buy 0.1 BTC at 98,500 USDT.
Short: Open a short position of 0.1 BTC at the same price.
Strategy: You can close one order upon reaching the target, while leaving the second in case the trend continues.
Hedging mode is useful for those who want to use long and short positions simultaneously, minimizing risks or creating complex strategies. The key is to properly calculate margin and monitor liquidation of positions.
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