How to switch hedge mode on Bybit futures?

Understanding Hedge Mode in Bybit Futures

1. Hedge mode allows users to hold both long and short positions simultaneously for the same contract.

2. This functionality is available only in isolated margin mode—not in cross or unified margin accounts.

3. Bybit supports hedge mode across USDT-margined perpetual and futures contracts, but not for inverse contracts.

4. Enabling hedge mode does not affect existing open positions; it only applies to new orders placed after activation.

5. Users must disable one-way mode before activating hedge mode—this setting resides under the “Position Mode” section in the trading interface.

Step-by-Step Activation Process

1. Log into your Bybit account via web or official mobile app.

2. Navigate to the Derivatives tab and select either Perpetual or Futures market.

3. Choose a specific contract pair such as BTCUSDT or ETHUSDT.

4. Click the gear icon in the top-right corner of the trading panel to access settings.

5. Locate “Position Mode” and toggle from One-Way to Hedge Mode using the switch button.

Margin and Risk Implications

1. Each long and short position operates with its own isolated margin allocation in hedge mode.

2. Liquidation is calculated separately per position—no netting occurs between opposing directions.

3. Maintenance margin requirements are applied individually, increasing capital efficiency for directional hedging strategies.

4. Funding rate payments are incurred independently on both sides, meaning users may pay funding while receiving it depending on market conditions.

5. Order execution logic remains unchanged—limit, market, and conditional orders function identically regardless of position mode.

Common Operational Constraints

1. Hedge mode cannot be enabled if any open position exists in one-way mode on the same contract.

2. Switching from hedge to one-way mode requires closing all opposing positions first.

3. API users must use the set_position_mode endpoint with parameter mode=1 to activate hedge mode programmatically.

4. Demo account users can test hedge mode without risk, replicating live environment behavior accurately.

5. The position mode setting persists across sessions unless manually changed again by the user.

Frequently Asked Questions

Q: Can I switch position mode while having active orders in the order book?Yes, pending orders remain unaffected when changing position mode, but unfilled limit orders will be canceled upon switching from one-way to hedge mode.

Q: Does hedge mode support trailing stop orders?Trailing stops are fully supported in hedge mode and operate independently per position direction.

Q: Is there a fee difference between one-way and hedge mode?No fees differ based on position mode—maker/taker rates and funding calculations remain identical.

Q: What happens to my unrealized PnL display when using hedge mode?The platform displays separate unrealized PnL values for long and short positions, with no aggregated net value shown by default.