Bottom line first: Beginners should just choose "One-way mode." Switch to hedge mode only when you clearly understand why you need long and short positions at the same time.
First, let's explain the difference between these two modes. Then we'll show you how to choose and how to switch.
One-way mode: opening a short auto-closes your long
In one-way mode, one contract can only hold one direction at a time. If you have a long position and then open a short position, the system will automatically close your long position and replace it with the short.
For example: you hold a BTCUSDT long position, then you want to open a short. In one-way mode, the system first closes your long at market price, then uses the remaining funds to open the short. The whole process is basically a "reversal", not holding both sides at once.
OKX official docs put it simply: one-way mode is suitable for beginners. It only supports holding one direction at a time. If you open a reverse position, the existing position will be closed.
Hedge mode: long and short can be held at the same time
In hedge mode, long and short positions can exist at the same time without affecting each other. If you open a short, your previous long stays open. Each side calculates its own profit and loss, and each side uses its own margin separately.
Using the same example: you have a BTC long position, then open a short. In hedge mode, your long position will not be closed. Both directions appear in your positions list at the same time.
The core purpose of hedge mode: hedging risk, not making more money. For example, you hold spot and think the market may drop in the short term, but you don't want to sell your spot. You can open a short to hedge. If the price drops, the short makes money and offsets the spot loss.
How beginners should choose — don't overthink, pick one-way
Just choose one-way mode. Here are three reasons:
Simple to use: you don't need to deal with holding long and short at the same time. If you want to reverse, the system handles it for you.
Less room for mistakes: you won't end up thinking you closed a position but actually opened a new one.
Good for learning: when you really need to hold long and short at the same time, you'll naturally know it's time to switch modes.
How to switch position mode
App path: [Trade] → select [Futures] → top-right [···] → [Trading settings] → [Trading mode] → [Position mode] → choose [One-way mode] or [Hedge mode].
Web path: [Trade] → select [Futures] → top-right settings icon → [Trading settings] → [Position mode] → choose the mode you want.
Key limit: before switching, all existing positions and open orders under that contract must be fully closed. If you have any positions or open orders, this option is grayed out and cannot be selected.
How to verify the switch worked
After switching, go to the contract trading page. Tap [Trading settings] in the top-right → [Trading mode] and check. If it shows "One-way mode" or "Hedge mode," the switch worked. If you can't switch because of open orders, go to [Current orders] first, cancel the orders, and try again.
