In One-Way Mode, positions can only be open in one direction—either Long or Short. Hedge Mode allows you to maintain both Long and Short positions simultaneously for the same trading pair. This feature is often used to mitigate potential losses and protect positions against adverse market movements. However, it’s essential to understand that Hedge Mode is not risk-free and should be used cautiously, ideally after thorough research.
When and Why to Use Hedge Mode
Hedge Mode is particularly useful for:
Mitigating Risk: Holding both Long and Short positions can help offset losses in case of unfavorable market shifts.
Market Neutral Strategies: Allows you to profit from market volatility without relying on a single directional move.
⚠️ Important
Hedge Mode does not eliminate risk entirely. Use it with a clear strategy in place, as it can increase complexity and costs.
Hedge Mode Availability by Exchange and Bot Type
Hedge Mode is available on certain exchanges and varies by the type of bot you’re using. Here’s a breakdown:
DCA and Grid Bots:
Bybit Futures* (Bybit Inverse and Bybit USDT Perpetual):
Bybit Unified Trading Accounts (UTA): Allows Hedge Mode for both DCA and Grid bots.
Bybit Classic Accounts: Hedge Mode is required for Grid bots; it can be toggled for DCA bots in UTA.
Gate.io Futures: Available for DCA bots and Grid bots.
Binance Futures: Available for DCA bots only.
OKX Futures: Available for DCA bots only.
Bitget Futures: Available for DCA bots only.
SmartTrade and Terminal:
Supported for all exchanges that offer Hedge Mode.
*Bybit Notes
DCA Bots:
In UTA accounts, Hedge Mode is optional, but for Classic accounts, Hedge Mode is mandatory.
Multi-pair DCA bot trading is supported on Bybit USDT-M.
Grid Bots:
Classic Accounts: Hedge Mode is required for Grid bots.
UTA Accounts: Bots can operate in either Hedge or One-Way Mode.
Signal Bot/SmartTrade: Hedge Mode is supported for Bybit USDT-M in UTA accounts.
How to Set Up Hedge Mode in 3Commas
To toggle between Hedge Mode and One-Way Mode in 3Commas:
Access Account Settings:
Navigate to the My Portfolio page.
Any accounts that support both modes will show a button for Hedge Mode.
Toggle Hedge Mode:
Click on the mode button to switch between Hedge and One-Way modes.
Alternatively, click View on the account, go to the Settings tab, and use the toggle button to switch modes.
Note
Before changing modes, ensure all open orders and positions are closed. Attempting to switch modes with active positions will result in an error.
