> For the complete documentation index, see [llms.txt](https://docs.afx.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.afx.xyz/trading-rules/position-modes.md).

# Position Modes

AFX supports two position modes: **One-Way Mode** and **Hedge Mode** (Two-Way). The position mode setting applies globally to all USDC-margined perpetual contracts.

## One-Way Mode

In One-Way mode, you can hold either a long **or** a short position on a given contract — not both simultaneously. Orders specify a size and direction only; there is no distinction between "open" and "close."

* Submitting an order in the opposite direction of your current position will reduce or close the existing position, and may open a reverse position if the order size exceeds the current position size.
* **Reduce Only** orders are available in this mode, ensuring that an order will only decrease your current position without opening a reverse position.

## Hedge Mode

In Hedge Mode (Two-Way), you can hold both a long and a short position on the same contract simultaneously where the mode is available. The order panel provides separate "Open" and "Close" tabs.

* Long and short positions are managed independently, each with their own entry price and margin.
* In Hedge Mode with Cross Margin, both positions share the account equity for liquidation purposes, but the liquidation price is calculated considering the net exposure.
* Position mode **cannot** be changed while you have any open positions or active orders (including conditional orders). You must close all positions and cancel all orders first.


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