Bybit USDT-M how to use hedge mode? (Position Settings)

Understanding Hedge Mode in Bybit USDT-M Contracts

1. Hedge Mode allows traders to hold both long and short positions simultaneously on the same symbol within a single wallet.

2. This mode is distinct from One-Way Mode, where only one directional position can exist per symbol at any time.

3. In Hedge Mode, each position operates independently—entry price, leverage, margin, and liquidation price are calculated separately.

4. Traders must explicitly enable Hedge Mode before opening opposing positions; it cannot be toggled after positions are opened in One-Way Mode.

5. The mode applies globally across all USDT-M contracts on Bybit and persists until manually changed in the Position Settings section.

Enabling Hedge Mode via Position Settings

1. Log into your Bybit account and navigate to the USDT-M Futures trading interface.

2. Click the gear icon labeled Position Settings located near the order entry panel.

3. Locate the Position Mode dropdown menu and select Hedge Mode.

4. A confirmation dialog appears warning about mode-switching restrictions—confirm to proceed.

5. Once enabled, the interface displays two separate position panels: Long and Short, each with independent margin and PnL tracking.

Managing Dual Positions Under Hedge Mode

1. Opening a long position does not close or interfere with an existing short position on BTCUSDT or any other USDT-M pair.

2. Each position maintains its own isolated margin—reducing risk of cross-position liquidation cascades.

3. Leverage can be adjusted individually per position without affecting the other direction’s settings.

4. TP/SL orders are bound to their respective position type and do not auto-cancel counterpart entries.

5. When reducing size, traders specify whether the reduction applies to Long or Short via the corresponding position panel’s close button or partial close input field.

Risk Parameters and Liquidation Behavior

1. Liquidation price for each position is computed solely based on its own entry price, leverage, and maintenance margin rate.

2. Available margin is shared across both positions but allocated dynamically—no automatic reallocation occurs upon market movement.

3. Unrealized PnL from long and short positions is displayed separately and summed only for total wallet equity calculation.

4. Funding payments are applied independently per position—longs pay or receive funding based on their side, shorts do the same.

5. If margin ratio falls below the maintenance threshold for either position, that specific position triggers liquidation while the opposite remains intact.

Frequently Asked Questions

Q: Can I switch from Hedge Mode back to One-Way Mode while holding open positions?A: No. Bybit requires all positions to be closed before allowing a mode switch. Attempting to change mode with active long and short positions will result in an error message.

Q: Does Hedge Mode support trailing stop orders for both directions?A: Yes. Trailing stops can be set independently for long and short positions, each maintaining its own activation price and callback rate.

Q: Are position limits different in Hedge Mode compared to One-Way Mode?A: No. Maximum position size per symbol remains identical regardless of mode—governed by Bybit’s risk parameters and user tier.

Q: Is profit and loss calculated in real time for each position separately in Hedge Mode?A: Yes. Real-time PnL updates appear under each position panel, reflecting mark price changes against individual entry points and sizes.