How to Enable One-Way Mode or Hedge Mode on Bybit Futures?

Understanding Position Modes on Bybit Futures

1. Bybit Futures supports two distinct position modes: One-Way Mode and Hedge Mode. These are not interchangeable settings applied post-trade but foundational configurations that determine how positions interact across the same symbol.

2. In One-Way Mode, only a single net position is permitted per contract — either long or short — with no simultaneous holding of opposite directions. This simplifies PnL calculation and margin allocation, aligning with traditional futures logic.

3. Hedge Mode allows users to maintain both long and short positions in the same contract simultaneously. Each direction operates independently in terms of margin, liquidation price, and unrealized PnL.

4. Switching between modes is restricted while any open position or pending order exists on the selected contract. Users must fully close all positions and cancel all orders before mode changes take effect.

5. The mode applies at the contract level, meaning BTCUSDT perpetual and ETHUSDT perpetual can operate under different modes within the same account.

Step-by-Step Activation Process

1. Log into your Bybit account via web or mobile app and navigate to the Futures trading interface.

2. Select the target contract (e.g., BTCUSDT Perpetual) and locate the position mode toggle — typically found near the order entry panel or under “Settings” > “Trading Settings”.

3. Click the mode switcher icon. A confirmation dialog appears warning about prerequisites: zero open positions, zero active orders, and zero conditional orders tied to that contract.

4. If prerequisites are met, the system applies the change instantly. No email verification or 2FA re-authentication is required for this action.

5. After activation, the new mode governs all subsequent trades on that contract. Historical position records remain visible but are no longer editable under the previous mode’s rules.

Margin and Liquidation Implications

1. In Hedge Mode, initial margin is calculated separately for long and short legs using their respective entry prices and current mark price. Cross-margin and isolated-margin settings apply independently per leg.

2. Liquidation triggers occur individually: a long position may be liquidated while the short remains intact, even if the net delta is near zero.

3. One-Way Mode computes margin based on the absolute net position size. A 10 BTC long and 7 BTC short results in a 3 BTC net long position for margin purposes — not two separate 10 and 7 BTC exposures.

4. Funding payments are assessed per position in Hedge Mode, meaning longs pay funding to shorts regardless of net exposure. In One-Way Mode, funding flows reflect only the net directional bias.

5. Auto-deleveraging (ADL) prioritization behaves identically across modes, as it operates on individual user accounts and leverage ratios rather than position structure.

Common Configuration Errors

1. Attempting to switch modes while a stop-market order is pending causes immediate rejection with error code 10008. Users must cancel such orders manually before retrying.

2. Enabling Hedge Mode without adjusting risk parameters often leads to unexpected margin calls — especially when both legs share similar entry zones and experience correlated adverse moves.

3. Using API endpoints like /private/linear/position/set-position-mode without first verifying position status returns HTTP 400 with message “Position mode cannot be changed when position exists”.

4. Mobile app users sometimes misinterpret the position summary screen: green/red shading indicates direction but does not confirm mode. The actual mode is displayed as a small badge beside the contract name (e.g., “Hedge” or “One-Way”).

Frequently Asked Questions

Q: Can I use different position modes across different sub-accounts?A: Yes. Each unified trading account and each sub-account maintains its own position mode configuration per contract. Changes in one sub-account do not propagate to others.

Q: Does changing position mode affect existing open interest metrics shown on Bybit’s public analytics dashboard?A: No. Open interest data aggregates all positions regardless of mode. The platform’s statistics layer does not distinguish between Hedge and One-Way contributions.

Q: Is it possible to programmatically detect the current position mode via REST API without initiating a trade?A: Yes. The endpoint /private/linear/position/list includes a mode field in the response body for each contract, returning either “Merged” (One-Way) or “Both” (Hedge).

Q: Do trailing stop orders behave differently in Hedge Mode versus One-Way Mode?A: Trailing stops are attached to individual positions. In Hedge Mode, each long and short leg can have its own trailing stop. In One-Way Mode, only one trailing stop exists per contract, aligned with the net position direction.