On Monday (April 6), crypto exchange Binance announced that it has released “hedge mode” on its crypto futures platform.
Here is how Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) announced the news on Twitter:
You asked for it, and we had nothing else to do during quarantine. #buidl https://t.co/LgTZbgPAMD
— CZ Binance 🔶🔶🔶 (@cz_binance) April 6, 2020
This is how Binance’s announcement describes hedge mode:
“In hedge mode, users can hold positions in both long and short directions at the same time under the same contract. Users will now be able to switch between one-way mode and hedge mode in the Preference settings. The position mode is set as one-way mode by default.”
In order to be able to use hedge mode, users need access to “the latest version of the trading interface,” which in the case of mobile users means making sure that they have either version 1.21.1 and above of the Android version of the Binance app and/or version 2.10.1 and above of the iOS version of the Binance app.
Binance says that in “one-way mode”, it is possible to “only hold positions in one direction under one contract” while in “gedge mode”, it is possible to “hold positions in both long and short directions at the same time under the same contract.”
Featured Image Courtesy of Binance
