XT Perpetual Contracts Support Two-Way Position Mode, Allowing Users to Hold Both Long and Short Positions Simultaneously on a Single Contract.
1. Two-Way Position Mode
What is Two-Way Position Mode?
In XT contract trading (including USDT-margined and coin-margined contracts), users can hold both long and short positions simultaneously on the same contract, with independent leverage for each direction. All long positions are combined, and all short positions are combined. In two-way position mode, both long and short positions require margin allocation based on the leverage tiers of the risk limit.
For example, in the BTC/USDT perpetual contract, a user can open a 25x long position and simultaneously open a 50x short position.
In two-way position mode, users can hold both long and short positions on the same contract. Therefore, opening and closing positions in this mode differ slightly from one-way mode. To open a position, users must select "Open Position" before placing an order. Conversely, to close a position, users should select "Close Position."
Advantages of Two-Way Position Mode
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Flexibility:
Traders can hold both long and short positions on the same futures asset, allowing them to respond flexibly to both market rises and declines based on their personal judgment. -
Diversified Trading Strategies:
Two-way position mode enables traders to employ a variety of strategies, such as arbitrage, hedging, and volatility trading, to adapt to different market environments and seize trading opportunities. -
Risk Control:
By holding both long and short positions on the same asset, traders can mitigate the risks associated with one-sided positions. In uncertain or volatile markets, hedging or reducing positions can help control risk.
Note: Two-way position mode requires traders to have strong risk management skills and market judgment. Traders should allocate capital and positions according to their trading plans and risk tolerance, and set appropriate stop-loss and take-profit levels to control risk and protect profits.