Hedge mode vs one-way on Freya futures

#Hedge Mode vs One-Way: How Freya Sets Your Futures Position Mode

Futures accounts have a position mode — one-way or hedge. You don't pick it per bot; Freya standardizes on hedge mode so your long and short bots can coexist. This guide explains what that means and the one situation where it needs your attention. (Spot has no position mode.)

For the spot-vs-futures decision, see Spot vs Futures; for the connection-time warning, see Can't Connect Your Exchange?.

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#What Position Mode Means

• One-way mode — you hold a single net position per pair. Buying while short reduces or flips that position; you can't be long and short on the same pair at the same time.
• Hedge mode (dual) — you can hold a long and a short simultaneously on the same pair, as two separate positions.

This setting is futures-only. Spot has no position mode — there's nothing to net or hedge.

#Why Freya Uses Hedge Mode

Freya standardizes futures accounts on hedge mode for a practical reason: it lets a long bot and a short bot on the same pair operate independently, without one closing or reducing the other. In one-way mode, a short order could cancel out a long you're running — hedge mode keeps each bot's position its own. So you set up each bot's direction freely, and they don't interfere.

Note: hedge mode lets you hold both directions at once — it does not make trading risk-free. Leverage and liquidation risk are unchanged; running a long and a short isn't a free hedge.

#When Existing Positions Block the Switch

Freya sets hedge mode when you connect your futures key. If you already have open one-way positions on that account, the exchange may not allow the switch yet. When that happens:

• Your key still saves — you'll see a calm warning, not a failure.
• Your bots can start trading once those existing positions are closed (close them on the exchange, then you're set).

The exact follow-up differs slightly by exchange, but the fix is always the same: clear the open one-way positions, and hedge mode activates.

#The "Position Mode Mismatch" Error

If a bot ever reports a position mode mismatch, it means your exchange account is in a different position mode than the bot expects (usually it drifted back to one-way). The fix: close the open positions on that pair and reconnect so hedge mode is set again.

#Frequently Asked Questions

#What's the difference between hedge mode and one-way mode?

One-way mode holds a single net position per pair — a buy and a sell on the same pair offset each other. Hedge mode lets a long and a short exist on the same pair at the same time, as two separate positions. Freya uses hedge mode.

#Do I choose hedge or one-way on Freya?

No — you choose each bot's direction (long or short), and Freya sets your futures account to hedge mode for you. You don't toggle position mode yourself.

#Why does Freya use hedge mode instead of one-way?

So a long bot and a short bot on the same pair can run independently without cancelling each other out. In one-way mode they'd interfere; hedge mode keeps each bot's position separate.

#Freya showed a hedge-mode warning but still saved my key — is that a problem?

It's not a failure. It usually means you have open one-way positions that prevent switching to hedge mode right now. Your key is saved; close those positions and your bots can trade in hedge mode.

#Why can't Freya switch my account to hedge mode?

Almost always because there are open one-way positions on the account. Exchanges don't allow a mode switch while positions are open — close them, then reconnect or restart, and hedge mode will activate.

#Does spot trading have a position mode?

No. Position mode (hedge vs one-way) is a futures concept. Spot has no leverage, no liquidation, and no position mode.

#I got a "position mode mismatch" error — what do I do?

Your account is in a different position mode than the bot needs. Close any open positions on that pair and reconnect your exchange so Freya can set hedge mode again.