How to use the multi-position mode on Bybit?

Understanding Multi-Position Mode on Bybit

1. Multi-position mode on Bybit allows traders to hold multiple positions in the same trading pair simultaneously. This feature is particularly useful for users who want to manage different strategies within a single market. Instead of closing one position to open another, traders can maintain long and short exposures at varying entry points and leverage levels.

2. The system separates positions based on direction and entry parameters. For instance, a long position opened at $30,000 for BTC/USDT can coexist with another long entered at $32,000. Each position maintains its individual margin, entry price, and liquidation level. This granular control enhances risk management and strategic flexibility.

3. To activate multi-position mode, users must navigate to the trading interface and select the position mode option. Bybit typically provides a toggle between “One-Way Mode” and “Hedge Mode.” Selecting “Hedge Mode” enables the multi-position functionality. Once enabled, the platform stops merging new orders with existing ones unless they share the same direction and contract type.

4. This mode supports both cross and isolated margin settings per position. Traders can allocate specific margin amounts to each position independently, allowing for more precise capital utilization. It also prevents automatic liquidation of the entire exposure due to adverse movement in one segment of the portfolio.

5. Users should be aware that switching between one-way and hedge mode may require all open positions and pending orders to be closed or canceled. Bybit enforces this rule to prevent conflicts in position tracking and risk calculation during the transition.

Setting Up and Managing Multiple Positions

1. After enabling hedge mode, traders can open new positions by placing orders as usual. Each new order in the opposite direction creates a separate position instead of reducing the current one. For example, an existing long can remain intact while a new short position is initiated on the same symbol.

2. The position grid in the trading interface updates to display all active positions individually. Each entry shows its size, entry price, unrealized profit/loss, and liquidation price. This transparency helps traders monitor performance and adjust stop-loss or take-profit levels accordingly.

3. Adjusting leverage for individual positions is supported under multi-position mode. Traders can increase or decrease leverage without affecting other open trades. This capability is crucial when adapting to changing market volatility or refining risk exposure on specific entries.

4. Closing a position is executed per instance. A full or partial close order applies only to the selected position. This prevents unintended liquidation of other active trades in the same market. Partial closures reduce the size of the targeted position while preserving its remaining components.

5. Risk management tools such as stop-market, stop-limit, and trailing stops can be attached to each position separately. These orders are tied to the specific position’s parameters and do not interfere with others, ensuring accurate execution aligned with individual strategy goals.

Strategic Advantages of Hedge Mode

1. Traders can implement complex strategies like dollar-cost averaging, grid trading, or hedging live exposure against macroeconomic events. The ability to run concurrent long and short positions allows for dynamic market participation regardless of overall trend direction.

2. Institutional and advanced retail traders benefit from simulating portfolio diversification within a single contract. For example, holding a long-term bullish view while taking short-term bearish trades becomes operationally feasible without strategy interference.

3. Multi-position mode enhances psychological discipline by isolating trades and their outcomes. Emotional bias from one losing position does not automatically trigger adjustments in unrelated ones, promoting clearer decision-making.

4. Arbitrage opportunities between funding rates or price discrepancies across exchanges can be exploited more efficiently. By maintaining offsetting positions, traders can lock in spreads while managing counterparty risk through selective margin allocation.

5. The mode supports advanced order types and API integrations, enabling algorithmic trading systems to manage multiple entry and exit logic streams simultaneously. Automated bots can open, monitor, and close positions independently based on predefined conditions.

Frequently Asked Questions

Can I switch back to one-way mode while having open positions? No, Bybit requires all open positions and pending orders to be closed before switching from hedge mode to one-way mode. This ensures data consistency and prevents overlapping position calculations.

Does multi-position mode affect funding fees? Funding fees are charged based on each individual position’s direction and size. Long and short positions in the same market pay or receive funding independently according to their respective notional values.

Is it possible to transfer margin between positions? Margin cannot be directly transferred between positions. However, users can adjust margin allocation for each position separately, adding or reducing collateral assigned to specific trades.

Are liquidation prices calculated differently in hedge mode? Yes, liquidation prices are computed individually for each position based on its entry price, leverage, and assigned margin. This isolation prevents cascading liquidations across unrelated trades.