Q: What are the different types of position modes?
A: There are two main types of position modes:
Multi-Position Mode allows traders to open multiple orders for the same trading pair in different directions (long and short) simultaneously.
One-Way Mode is a position mode where a trader can only hold one position (either long or short) in a specific time. If a trader wants to open a new position in the opposite direction, the existing position must be closed first.
Q: Can I change position modes during an active trade?
A: No, you cannot switch position modes while you have active trades. To change modes, you must first close all open positions and cancel any pending orders.
Q: Can I set different leverage for different positions in Multi Position Mode?
A: Yes, in Multi-Position Mode, you can set different leverage levels for each position.
Q: Will my liquidation risk change when switching position modes?
A: Yes, depending on the mode you choose, your liquidation risk may change. In Single Position Mode, the liquidation is based on the overall leverage and margin of the single position in Multi Position Mode, each position has its own liquidation threshold based on its leverage and margin.
Q: Can I use both position modes for different trading pairs?
A: No, the position mode you select applies to your entire account and all trading pairs.
Q: Can I open both a long and short position for the same symbol in One-way Mode?
A: No, you cannot. If you attempt to open a new position (e.g., a short position) while holding an existing position (e.g., a long position), depending on the size of the order, one of the following can happen:
Example 1: The user opens a short position with a quantity greater than the existing long position.
- The user currently holds a long position of 5,000 USDT
- The user opens a short position of 8,000 USDT
- Since One-Way Mode does not allow long and short positions to exist simultaneously, the system first closes the 5,000 USDT long position.
- The remaining 3,000 USDT from the short order is then opened as a new short position.
Example 2: The user opens a short position with a quantity lesser than the existing long position.
- The user currently holds a long position of 5,000 USDT
- The user opens a short position of 3,000 USDT
- Since One-Way Mode does not allow long and short positions to exist simultaneously, the system reduces the long position by 3,000 USDT.
- The user now holds a 2,000 USDT long position.