To help you better understand the position management rules of futures trading on HTX, we provide a detailed explanation of One-Way Mode and Hedge Mode. Please choose the appropriate mode based on your trading strategy to optimize risk and capital management.

I. Position Modes

1. Hedge Mode

In Hedge Mode, traders can hold positions in long and short directions simultaneously under the same symbol, and unrealized PnL can be offset between the two positions of the symbol.

Position mode adjustments are unavailable while pending orders are active. Switching between position modes applies only to newly opened positions and does not affect existing holdings.

2. One-Way Mode

In One-Way Mode, traders can hold positions in only one direction (long or short) under the same symbol. When closing a position, you can utilize the "Reduce-Only" order type, ensuring your order solely reduces the existing position without opening a reverse one.

In this mode, submitting a new short order while holding a long position of the same symbol will first partially or fully close the existing long position.

If the short order size ≤ the long position size, the system closes the corresponding portion of the long position and does not open a short position.

If the short order size > the long position size, the system first closes the entire long position and then opens a new short position with the remaining volume.

Position mode adjustments are unavailable while pending orders are active. Switching between position modes applies only to newly opened positions and does not affect existing holdings.

II. Examples

1. User A trading the BTCUSDT perpetual futures under Hedge Mode opens a long position of 10 conts, then opens a short position of 20 conts. The user now holds 10 long contracts and 20 short contracts under the symbol.
2. User B trading the BTCUSDT perpetual futures under One-Way Mode buys 10 conts, then places a sell order for 20 conts (without selecting Reduce-Only). The system will first close 10 long contracts, and then open 10 short contracts. The user now holds a short BTCUSDT position of 10 conts.
3. User C trading the BTCUSDT perpetual futures under One-Way Mode buys 10 conts, then places a sell order for 10 conts with Reduce-Only. The system will simply close the 10 long contracts. The user now holds no open position of the symbol.

Notes:

1. In Isolated Margin Mode, traders can set an independent position mode for each symbol. You can switch position modes as long as you hold no open positions or pending orders under that symbol. In Cross Margin Mode, however, a position mode applies across all symbols, and you must have no open positions or pending orders of any symbol before switching the position mode.

2. Only One-Way Mode supports reduce-only orders. When placing reduce-only orders, the order size must be smaller than or equal to that of the position available for closing.

3. Grid trading is only supported in Hedge Mode.