Hedge mode (two-way positions)

info

Live. The opt-in toggle, explicit per-side order routing, independent per-leg margin, and dual-leg position reporting are shipped: an account can switch to hedge mode (while flat), route each order to an explicit leg via position_side, and each leg posts its own margin and reports as its own position object. Per-leg liquidation is partly in place: when an account is flagged for a forced close, both legs are scanned and scored, and the deterministic close ordering (larger-maintenance leg first) is computed identically across validators — the actual per-leg close emission against the book is still rolling out. The default and recommended behaviour remains one-way (single net position per market).

TL;DR

By default an account holds one net position per market (one-way): buying while short reduces, then flips, the same position. Hedge mode lets an account hold a long leg and a short leg in the same market at the same time, tracked separately.

Hedge mode is opt-in per account with no balance threshold — any account can enable it. It can only be toggled while the account is flat on every market.

One-way vs hedge

	One-way (default)	Hedge
Positions per market	1 net (signed)	up to 2 (a Long leg + a Short leg)
"Buy while short"	reduces, then flips the net position	reduces the Short leg only (or opens/extends the Long leg — you choose)
Order side selection	inferred from buy/sell	explicit position_side (long / short) required
Margin	one net requirement	each leg margined independently
Liquidation	one liquidation price	each leg scored on its own maintenance; deterministic close ordering in place, per-leg close emission rolling out
Reporting	one net position object	one object per non-zero leg (each labelled position_side)

The toggle, per-side routing, independent per-leg margin, and dual-leg reporting are live; per-leg liquidation selection is in place, with per-leg close emission still rolling out (see the status note above).

Enabling it

Switching the position mode is a signed action; it is only legal when the account is flat on every market.

// enable hedge mode (only legal when flat on ALL markets)
{ "type": "set_position_mode", "params": { "hedge": true } }

// back to one-way (also only when flat)
{ "type": "set_position_mode", "params": { "hedge": false } }

hedge is a boolean: true = hedge (two-way), false = one-way (the default). The flat-on-all-markets precondition is a safety rule — switching while holding any open position is rejected (a clean no-op that mutates nothing), so a net position can never be silently re-interpreted as a stranded leg. Setting the mode to the value it already has, while flat, is a no-op success.

See set_position_mode in the /exchange reference for the request/response detail.

Placing orders in hedge mode

In hedge mode every order must carry an explicit position_side (long / short). A one-way account must not send position_side; a hedge account must. The field is on the submit_order order body alongside side, reduce_only, etc.

{
  "type": "submit_order",
  "order": {
    "owner": "0x...aa", "market": 0, "side": "bid",
    "kind": "limit", "size": 100000000, "limit_px": 5000000000,
    "tif": "gtc", "stp_mode": "cancel_oldest",
    "reduce_only": false,
    "position_side": "long"
  }
}

Intent	side	position_side	reduce_only
Open / add to long	bid	long	false
Reduce / close long	ask	long	true
Open / add to short	ask	short	false
Reduce / close short	bid	short	true

position_side is explicit, never inferred — otherwise a buy meant to reduce a short could mistakenly open or grow a long. reduce_only is evaluated against the named leg only: a reduce_only order on the short leg can never touch the long leg.

There is no "flip" in hedge mode. Closing the long leg never opens a short — that is a separate order against the short leg.

Margin

Each leg is margined independently — the long leg and the short leg each post their own initial and maintenance margin, summed into the account requirement:

required_margin = initial_margin(long_leg) + initial_margin(short_leg)

This is intentionally conservative: a long+short in one market is delta-neutral in price terms, but each leg still ties up margin. (A future upgrade may offer netting credit for offsetting legs under portfolio margin; until then, hold both legs only if you want genuinely separate exposures, e.g. different entry prices you intend to manage independently.)

Each leg keeps its own margin mode — you may, for example, run the long leg isolated and the short leg cross.

Liquidation

When an account is flagged for a forced close, both legs are scanned and scored by their own maintenance contribution, and the deterministic close ordering — the larger-maintenance leg first (ties: long before short), identical across validators — is computed through the standard tiered liquidation ladder. The actual per-leg close emission against the book is still rolling out; when it lands, liquidating one leg will not touch the other.

Reporting

When hedge mode is on, the /info position reads return one position object per non-zero leg for a market that has both legs, each labelled with its side ("long" / "short"). A one-way account returns a single net position with no side field. Market-level open interest stays a single net figure. Position rows live on clearinghouse_state; position_mode itself stays on account_state.

See also

• Margin modes — cross / isolated / strict-iso, applied per leg
• Portfolio margin — where future leg-netting credit would live
• Tiered liquidation — per-leg ladders
• /exchange reference — the action wire format

FAQ

Show FAQ

Q: Do I have to use hedge mode? A: No. One-way (net) is the default and behaves exactly as before; hedge mode is purely opt-in.

Q: Is there a minimum balance to enable it? A: No threshold — any account can switch on hedge mode while flat.

Q: Why can't I toggle while I have an open position? A: To prevent an existing net position from becoming an ambiguous, stranded leg. Close out, then switch.

Q: Does a long + short of equal size cost double margin? A: Yes — legs are margined independently, so an offsetting long+short ties up both legs' margin. Netting credit for offsetting legs is a later enhancement (under portfolio margin).