Currently, AlphaX perpetual contracts only support hedge mode as the position mode. This mode allows users to simultaneously hold both long and short positions. In uncertain market conditions, this can help balance out gains and losses to some extent, protecting investor interests.
For example:
- Suppose that when the last price of the ETHUSDT perpetual contract reaches 1,900 USDT, you open a 5 ETH long position. Then, when the price drops to 1,890 USDT, you open a 6 ETH short position. At this point, as the market fluctuates and the ETHUSDT perpetual contract price rises to 1,920 USDT, the unrealized PnL for the positions is as follows:
Long position: (1,920-1,900) * 5 = 100 USDT
Short position: (1,890-1,920) * 6 = -180 USDT
At this time, the long position generates a profit of 100 USDT, while the short position incurs a loss of 180 USDT, resulting in a total net PnL of -80 USDT. This loss is 100 USDT lower than holding only a short position.
- Suppose that when the ETHUSDT perpetual contract price reaches 1,900 USDT, you open an 8 ETH long position and a 6 ETH short position. If the price rises to 1,950 USDT, the floating PnL is as follows:
Long position: (1,950-1,900) * 8 = 400 USDT
Short position: (1,900-1,950) * 6 = -300 USDT
At this point, the long position generates a profit of 400 USDT, while the short position incurs a loss of 300 USDT, resulting in a net profit of 100 USDT.
From the data above, it can be observed that hedge mode can help reduce risk and limit potential losses. At the same time, in hedge mode, users can use their funds more efficiently and with greater flexibility.
The above trading examples are for reference only and do not constitute any investment advice. Invest prudently and make informed investment decisions.