Glossary
What is hedge mode?
Also called: dual-side position mode, long/short mode, two-way position mode
Updated Ninja Terminal team
Definition
Hedge mode is a position mode that lets one account hold a long position and a short position in the same contract at the same time. In one-way mode, opposite trades net against each other into a single position. Hedge mode needs a position side on each order, and exchanges usually require no open positions to switch.
In one-way (net) mode, selling while long reduces your long. In hedge mode, a sell can either close the long or open a separate short, depending on the position side you send.
How do venues document it?
| Venue | Setting | Notes |
|---|---|---|
| Binance (USD-M) | dualSidePosition true or false |
Applies to every symbol. Rejected when open orders or positions exist. COIN-M shares the same setting. reduceOnly cannot be sent in hedge mode |
| OKX | long_short_mode or net_mode |
Futures and multi-currency margin modes support both. In portfolio margin mode, futures and swaps support net mode only |
| Bybit | Mode 0 (one-way) or 3 (hedge) |
Documented for linear, inverse, and other perpetual and futures categories |
Hyperliquid is not covered here. Check its documentation for the position model it uses.
What changes when you trade?
- Each order needs a position side (long or short) on venues in hedge mode.
- A close order must carry the side of the leg it closes. See reduce-only.
- Margin and liquidation price can apply per leg.
Example: you are long 1 BTC and open a short of 0.5 BTC in hedge mode. You hold both legs. In one-way mode the same sell would reduce the long to 0.5 BTC.
Where does it appear in Ninja Terminal?
Ninja Terminal lists the long and short legs of a hedge account as separate positions, and close orders are scoped to the side. See the guide on hedge mode vs one-way mode and long and short.
Frequently asked questions
Can I switch to hedge mode with open positions?
On Binance, the change is rejected while open positions or open orders exist. Close them first. Other venues have their own rules.
Is hedge mode the same as hedging?
Not exactly. The mode only allows both legs at once. Whether holding both legs reduces your risk depends on your sizes and margin.