- Position Modes
(1) Hedge Mode
In hedge mode, users must specify whether to open or close a position when placing an order. Users can hold positions in both long and short directions at the same time under the same futures, and the leverages for the long/short positions are independent.
In each futures, all long positions are combined, and all short positions are combined. When holding positions in both long and short directions, the positions need to occupy the corresponding margin according to the risk limit level.
For example, in BTCUSDT futures, users can open a long position with 200x leverage and a short position with 200x leverage at the same time.
(2) One-Way Mode
In one-way mode, users do not need to specify whether to open or close a position when placing an order, but only need to specify whether they are buying or selling. Also, users can only hold positions in one direction under each futures at all times. When holding a long position, the sell order will be closed once it is filled, and when the number of filled sell orders exceeds the number of long positions, a short position will be opened in reverse.
- Margin Modes
(1) Isolated Margin Mode
The maximum loss of an isolated position is limited to the initial margin and additional position margin used by the isolated position. In the event of liquidation of the position, the user will only lose the margin of the isolated position, and the available balance of the account will not be used as additional margin. By isolating the margin used on a position, you can limit losses on that position to its initial margin amount, which is helpful if your short-term speculative trading strategy fails.
Users can manually add margin to isolated positions to optimize the liquidation price.
(2) Cross Margin Mode
Cross margin mode refers to using all the available balance of the account as a margin to guarantee all cross positions and prevent liquidation. In this margin mode, when the net asset value is insufficient to meet the maintenance margin requirement, liquidation will be triggered. If the cross position is liquidated, the user will lose all assets in the account except the margin of other isolated positions.
- Modify Leverage
At present, hedge mode allows users to use different leverage multipliers for their positions in long and short directions. Any leverage multiplier can be modified within the allowed range of the futures leverage multiplier. It also allows switching of margin mode, e.g. switching from isolated mode to cross margin mode. Please note that at present, if the user has a position in cross margin mode, it cannot be switched to isolated margin mode.