How to use the "One-Way Mode" on contracts? (Position Settings)

Understanding One-Way Mode Fundamentals

1. One-Way Mode is a position management structure where only a single directional exposure is permitted per trading pair at any given time.

2. Traders cannot hold both long and short positions simultaneously on the same contract under this mode.

3. Opening a new position in the opposite direction automatically closes the existing one, triggering a market or limit execution depending on order type.

4. The mode enforces strict position state transitions: neutral → long, neutral → short, long → neutral → short, or short → neutral → long.

5. Position size adjustments are allowed only within the current directional context—increasing or reducing exposure without flipping direction unless explicitly closed first.

Activation and Interface Navigation

1. Access the contract trading interface and locate the “Position Mode” toggle button, typically placed near the order entry panel or account settings dropdown.

2. Click the toggle to switch from Hedge Mode to One-Way Mode; confirmation prompts may appear requiring explicit user acknowledgment.

3. Once activated, the position summary section displays only one net position field labeled “Position” instead of separate “Long” and “Short” columns.

4. The margin calculation shifts to reflect unified maintenance margin requirements based on net directional risk, not isolated legs.

5. Order placement buttons dynamically adapt—“Buy” always opens or adds to longs, “Sell” always opens or adds to shorts, with no “Close Long” or “Close Short” secondary actions visible.

Risk Management Implications

1. Liquidation risk is evaluated against the net position value and its associated leverage level, making margin efficiency highly sensitive to entry timing and price volatility.

2. Stop-loss and take-profit orders attach directly to the active position and remain bound to it even after partial closures or position scaling.

3. Unrealized PnL reflects cumulative gains or losses across all entries and exits within the current directional stance, not per-trade isolation.

4. Auto-deleveraging triggers consider the entire net position size when determining priority ranking during extreme market dislocations.

5. Funding rate accrual applies to the net position balance, meaning long and short funding components do not offset each other as they would in Hedge Mode.

Order Execution Behavior

1. A “Buy” order submitted while holding a short position initiates an immediate close of the short followed by opening of the long at prevailing market conditions.

2. Limit orders placed in opposition to the current position remain pending until the existing position is manually closed or liquidated.

3. Post-only and reduce-only flags behave identically to Hedge Mode but operate exclusively on the net position state—not individual leg logic.

4. Trailing stops track price movement relative to the net entry point weighted average, recalculating dynamically as position size changes.

5. Iceberg and TWAP orders execute entirely within the context of the current net direction, with no internal splitting into opposing sub-orders.

Frequently Asked Questions

Q1. Can I switch from One-Way Mode to Hedge Mode while holding an open position?Yes, but the platform forces closure of all existing positions before allowing the mode change. No partial migration is supported.

Q2. Does One-Way Mode affect cross-margin or isolated-margin selection?No. Margin mode and position mode operate independently. Cross-margin applies to the net position; isolated-margin assigns dedicated collateral to that same net position.

Q3. Are TP/SL orders retained after switching from Hedge Mode to One-Way Mode?No. All pending TP/SL orders tied to individual long or short legs are canceled upon mode transition. New orders must be reconfigured for the net position.

Q4. What happens to open limit orders when a forced liquidation occurs in One-Way Mode?All unfilled limit orders linked to the liquidated position are automatically canceled. No residual order flow persists post-liquidation.