KuCoin Futures Has Launched Hedge Mode

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Dear KuCoin users,

To better meet diverse trading strategies and risk management needs, KuCoin Futures now officially supports Hedge Mode, enriching the variety of order strategies available to users.

What is Hedge Mode?
Hedge Mode allows users to hold both long and short positions simultaneously on the same futures contract. Unlike One-Way Mode, long and short positions in Hedge Mode do not offset each other, making it suitable for hedging risk and executing multiple trading strategies.

Use cases

  • Risk hedging: Lock in short-term volatility risks while maintaining long-term positions.

  • Multi-strategy trading: Run trend-following, arbitrage, and short-term strategies concurrently.

  • Capital protection: Reduce liquidation risk in highly volatile markets by holding opposite positions.

Difference between One-Way Mode and Hedge Mode

  • One-Way Mode

    • Only a single net directional position can be held under the same contract; longs and shorts offset each other.

    • Suitable for: Trend-following strategies and users who prefer simpler position management.

  • Hedge Mode

    • Allows independent long and short positions to exist simultaneously on the same contract without offsetting.

    • Suitable for: Hedging, arbitrage, and position-locking strategies.

Example

  • One-Way Mode: Hold 10 BTCUSDT long contracts, then sell 5 → net position = 5 long.

  • Hedge Mode: Hold 10 BTCUSDT long + 5 BTCUSDT short → both positions exist independently and do not offset.

How to switch position mode

  1. Open the KuCoin Futures trading page.

  2. Click the Settings → Preferences → Position Mode.

  3. In the pop-up, select One-Way Mode or Hedge Mode and confirm to save.
    Note: You must have no open positions or pending orders before switching; otherwise switching is not allowed.

Advantages of KuCoin Futures Hedge Mode

  • Optimized margin usage: When long and short positions are held at the same price, margin is calculated based on the larger side only.

  • Liquidation handling: In Cross Margin mode, if both long and short positions exist, the system will prioritize position offsetting to minimize overall risk.

  • Funding fee method: Funding fees are charged based on the net position and recorded as a single funding entry.

Risk Notice

  • Before switching modes, carefully assess your strategy and risk exposure and ensure your account funds and risk management are appropriate.

Thank you for your continued support of KuCoin Futures.
We will continue to optimize our products to provide you with a more professional trading experience and a wider range of strategy options.

 

Thanks for your understanding and support!

The KuCoin Futures Team

Risk Warning: Futures trading is a high-risk activity with the potential for huge gains and huge losses. Previous gains do not indicate future returns. Severe price fluctuations may result in the forced liquidation of your entire margin balance. This information should not be regarded as investment advice from KuCoin. All trading is done at your own discretion and your own risk. KuCoin is not liable for any losses resulting from Futures trading.

Thank you for your support!

The KuCoin Team

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