How to use the "One-Way Mode" in crypto perpetual contracts?

Understanding One-Way Mode Mechanics

1. One-Way Mode allows traders to hold only a single position direction per contract—either long or short—at any given time.

2. Opening a new position in the opposite direction automatically closes the existing one at the prevailing market price.

3. Position size is recalculated based on the entry price of the newly opened trade, not averaged with prior entries.

4. This mode eliminates the possibility of netting positions, meaning no offsetting between long and short legs occurs internally.

5. Margin utilization reflects the full requirement for the active position only, without cross-margin adjustments from inactive directions.

Risk Management Implications

1. Liquidation risk increases when rapid reversals occur, as forced exits happen at market prices without guaranteed fills.

2. Traders must monitor open interest shifts closely, since sudden directional moves may trigger cascading liquidations under One-Way constraints.

3. Stop-loss orders function independently per position, but their execution depends entirely on order book depth at reversal points.

4. Funding rate exposure resets with each new position, making cumulative funding cost calculations more volatile than in Hedge Mode.

5. Unrealized PnL updates continuously but does not compound across reversed trades—each new position starts with zero unrealized gain or loss.

Execution Workflow Steps

1. Select One-Way Mode before entering any trade; switching modes mid-position forces immediate closure of the current holding.

2. Submit a limit or market order specifying direction and size—the system validates available margin against the requested parameters.

3. Upon confirmation, the exchange assigns a unique position ID and begins tracking entry price, leverage, and maintenance margin level.

4. If a counter-directional order is placed while a position is active, the platform initiates an auto-close sequence before opening the new leg.

5. Real-time position data appears in the “Open Positions” tab, showing isolated margin balance, entry value, and liquidation price.

Margin Behavior Under Reversals

1. Initial margin is deducted anew for each position, even if the reversal happens seconds after the prior close.

2. Available balance updates instantly after position closure, factoring in realized PnL and fee deductions.

3. Cross-wallet transfers are disabled during active One-Way positions unless explicitly permitted by exchange policy.

4. Isolated margin settings remain fixed per position—no dynamic reallocation occurs when reversing direction.

5. Maintenance margin thresholds apply individually to each opened position, independent of historical entries.

Frequently Asked Questions

Q: Does One-Way Mode support trailing stop orders?Yes, trailing stops operate on the currently active position and reset upon reversal.

Q: Can I partially close a position in One-Way Mode?Yes, partial closures reduce position size proportionally while preserving the same direction and entry parameters.

Q: Is funding paid or received during the brief window between position closure and re-entry?No funding accrues during that interval since no open position exists at that moment.

Q: Do take-profit orders survive a directional reversal?No, all pending orders tied to a closed position—including take-profits—are canceled automatically.