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What is Hedge Mode?

Learn about Hedge Mode in 3Commas, which allows simultaneous long and short positions on the same contract to manage risks effectively.

Updated over a week ago

Hedge Mode is a Futures position mode that lets you hold both a Long and a Short position at the same time on the same trading pair.

  • One-Way Mode: you can only have one position direction open (Long or Short)

  • Hedge Mode: you can have both Long and Short open at the same time

Hedge Mode can help with hedging and more advanced strategies, but it can also increase complexity and trading costs (fees, funding, margin usage).


When and why to use Hedge Mode

Hedge Mode is commonly used for:

  • Risk hedging: reduce exposure by opening an opposite position

  • Market-neutral strategies: manage volatility without relying on one direction

Important: Hedge Mode does not eliminate risk. It can make position management more complicated, especially if you are new to Futures.


Hedge Mode availability by exchange and feature

Hedge Mode support depends on the exchange and the feature you’re using.

DCA and Grid Bots:

  • Bybit Futures (Bybit Inverse and Bybit USDT Perpetual): available for DCA bots and Grid bots

  • Gate 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:

    • Hedge Mode is optional.

    • Multi-pair DCA bot trading is supported on Bybit USDT-M.

  • Grid Bots:

    • 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 enable Hedge Mode in 3Commas

Note: Before changing modes, ensure all open orders and positions are closed. Attempting to switch modes with active positions will result in an error.

Option 1: Quick toggle from My Portfolio (3 dots menu)

  1. Find your Futures exchange account card

  2. Click the three dots (⋮) menu

  3. Toggle Hedge Mode ON (or OFF)

Option 2: From the exchange account Settings page

  1. Click View on the exchange account

  2. Open the Settings tab

  3. Toggle Hedge Mode / One-Way Mode

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