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Title: applications of having two opposite position on one token (hedge mode) Post by: CST123 on May 03, 2020, 04:28:20 AM On Binance Futures in hedge mode, we can have two opposite positions (long and short). What's the point of using this feature while the net position is either long or short. For example if I hold a $1000-long and a $300-short and the price goes down, I will lose the same amount of money as I just hold one $700-long.
1000 - 300 = 700 Even if we want to open the second position (opposition position) as stop-limit in a specific point, it's the same as setting a stop loss and reducing (or totally closing) our position. That is again one position. Title: Re: applications of having two opposite position on one token (hedge mode) Post by: Febo on May 03, 2020, 01:01:26 PM On Binance Futures in hedge mode, we can have two opposite positions (long and short). What's the point of using this feature while the net position is either long or short. For example if I hold a $1000-long and a $300-short and the price goes down, I will lose the same amount of money as I just hold one $700-long. 1000 - 300 = 700 Even if we want to open the second position (opposition position) as stop-limit in a specific point, it's the same as setting a stop loss and reducing (or totally closing) our position. That is again one position. It is not there for people to use both. It is there for people to use either one. Or going long or going short. Title: Re: applications of having two opposite position on one token (hedge mode) Post by: CST123 on May 03, 2020, 01:15:36 PM On Binance Futures in hedge mode, we can have two opposite positions (long and short). What's the point of using this feature while the net position is either long or short. For example if I hold a $1000-long and a $300-short and the price goes down, I will lose the same amount of money as I just hold one $700-long. 1000 - 300 = 700 Even if we want to open the second position (opposition position) as stop-limit in a specific point, it's the same as setting a stop loss and reducing (or totally closing) our position. That is again one position. It is not there for people to use both. It is there for people to use either one. Or going long or going short. Hedge mode is spedifically designed to go both. One-way mode is designed to go one way. You can read Binance help |