Glossary
What is Hedge mode
An account mode where you can hold a long and a short on one pair at once as two positions; in one-way mode an opposite trade just reduces the position.
How it works
Example
A 1 BTC long and a 0.4 BTC short. In one-way mode that nets into one position: a 0.6 BTC long. In hedge mode both exist, each with its own stop, margin and fee.
Common mistake
Opening a short against your long "as insurance" and calling the risk closed: two positions, two stops, two fees, and you are still in the trade.
Read next
Related terms
Frequently asked questions
- Where can I learn Hedge mode step by step?
- In the Trading OS Academy: “Long, short, and where profit comes from”.
- What is Hedge mode related to?
- Margin; Isolated vs cross margin; Long; Short.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
No sign-up: the journal runs in your browser. An account keeps your trades on the server.