Position Mode

Monochrome perpetual contracts support both one-way position mode and hedge position mode, meaning that under a single contract, users can hold a position in only one direction or simultaneously hold positions in both long and short directions.

1.One-Way Position

What Is One-Way Position Mode?

One-way position mode is the default position mode on Monochrome.

In one-way position mode, you can only hold a position in one direction for the same contract at a time — either long or short.

For example, if you already hold a long position and then place a new short order (without "Reduce Only" enabled), the system will first use that order to close your existing long position. If the order size is larger than your current position, the remaining size will open a new short position.

The Reduce Only function ensures that your order will only reduce or close an existing position, and will never increase or reverse your position. If your order size is larger than your current position, only the portion needed to reduce or close the position will be executed.

Example: Without "Reduce Only"

Suppose Trader A currently holds a 10 BTC long position. The trader then places a sell order for 15 BTC without selecting "Reduce Only."

The system will:

Close the existing 10 BTC long position.

Use the remaining 5 BTC to open a new short position.

Result: Trader A ends up holding a 5 BTC short position.

Example: With "Reduce Only"

Suppose Trader B currently holds a 5 BTC long position. The trader then places a sell order for 10 BTC and selects "Reduce Only."

The system will:

Close the existing 5 BTC long position.

Reject the remaining 5 BTC, because a "Reduce Only" order cannot increase or reverse a position.

Result: The long position is fully closed, and no new short position is opened.

2.Hedge Position Mode

In hedge position mode, you can simultaneously hold both long and short positions for the same contract.

Unlike one-way position mode, your long and short positions are completely independent. Opening a long position will not affect your short position, and vice versa.

When placing an order in hedge position mode, you must specify:

Direction — Long or Short

Action — Open or Close

This ensures the system knows which position you want to open, reduce, or close.

Example:

Suppose Trader C already holds a 10 BTC long position. The trader then places an order to open a 5 BTC short position.

Result:

Long position: 10 BTC

Short position: 5 BTC

Both positions remain active and are managed separately.

If you want to close the long position, you must place a Close Long order. Opening a short position will not automatically close your long position.