Most beginners think you can only go Long or Short at one time.
That’s not true.
Hedge Mode allows you to open Long and Short positions on the same trading pair at the same time.
Instead of choosing one direction, you can manage risk, protect positions, or trade both sides of the market.
This feature is mainly used by experienced traders, scalpers, and risk managers.
Hedge Mode vs One-Way Mode (Simple Comparison)
One-Way Mode
You can hold only one position per pair
Long or Short, not both
Best for beginners and directional traders
Hedge Mode
You can hold both Long and Short simultaneously
Each position has separate size and PnL
Best for risk control, strategies, and volatility trading
Why Traders Use Hedge Mode
Hedge Mode is not for gambling.
It’s for control and flexibility.
Key Benefits of Hedge Mode
1️⃣ Risk Management
You can hedge an open position instead of closing it. Example:
Holding a Long position
Market turns uncertain
Open a Short to reduce downside risk
This protects your capital without exiting the trade.
2️⃣ Trade Volatility Both Ways
Markets don’t move in straight lines. With Hedge Mode:
Long for higher timeframe bias
Short for short-term pullbacks
This allows smarter trading in sideways or choppy markets.
3️⃣ No Forced Position Closure
In One-Way Mode:
Opening an opposite trade reduces or closes your position
In Hedge Mode:
Both positions stay independent
No accidental position closure
4️⃣ Advanced Strategy Execution
Hedge Mode is ideal for:
Scalping against a swing trade
Funding rate strategies
News event protection
Grid or DCA futures setups
Where Can You Enable Hedge Mode?
You can enable Hedge Mode directly inside Binance Futures.
Step-by-Step Guide (Binance Futures)
1️⃣ Go to Futures Trading section
2️⃣ Click on the three dots (⋮) on the top-right corner
3️⃣ Select Preferences
4️⃣ Click on Position Mode
5️⃣ You will see One-Way Mode (default)
6️⃣ Switch it to Hedge Mode
7️⃣ Confirm your selection
Once enabled, you can open Long and Short positions separately on the same pair.
Important Things to Know Before Using Hedge Mode
⚠️ Hedge Mode is powerful — but not magic.
Keep in mind:
Margin is used for both positions
Fees apply on each trade
Poor risk management can still cause liquidation
Beginners should practice with small size first
Hedge Mode helps discipline — not emotional trading.
Who Should Use Hedge Mode?
✔ Intermediate to advanced traders
✔ Traders managing large positions
✔ Scalpers & hedgers
✔ Traders trading news & volatility
❌ Not recommended for beginners without risk control
Final Thoughts
Hedge Mode is about control, not prediction.
Instead of guessing the market:
You manage risk
You adapt to volatility
You trade smarter, not harder
Used correctly, Hedge Mode can be a powerful professional tool in futures trading.
Want next articles on:
Hedge Mode strategies
Hedge vs DCA Futures
Common Hedge Mode mistakes
Risk management for futures traders
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