Position Modes

Root DEX offers two unique trading modes, providing flexibility and options to suit traders' varying strategies: One-Way Mode and Hedge Mode.

One-Way Mode: In the one-way mode, traders can only maintain either a long or a short position for any given trading pair. Positions in different directions are consolidated. If a new trade aligns with the direction of the existing position, the position size increases. Conversely, if a new trade is in the opposite direction, the position size decreases. In one-way mode, the available order types are strictly "Long" or "Short."

Hedge Mode: In hedge mode, traders have the ability to hold both long and short positions concurrently for any trading pair. To open a position or add margin to an existing position in hedge mode, access the "Order Panel". To close a position, select "Close" under the "Position Tab". In hedge mode, margins aren't shared between long and short positions. If the margin of a long/short position drops below the Maintenance Margin level, the long/short position is liquidated without influencing the other position.

Please note: Traders can only switch position modes when there are no existing positions or open orders. When a trader modifies their position mode, it only impacts the current trading pair and does not affect other trading pairs.