What Is a Long-Short Hedge in Futures Trading?
A long-short hedge (also called a long/short lock) is a strategy where traders open equal or proportional long and short positions at the same time. This method helps manage market volatility and is often used to control risk or capture opportunities during uncertain or highly volatile periods.
When to Use This Strategy
- Before high-volatility events like major economic announcements.
- When the market trend is unclear and direction is hard to predict.
- In professional strategies such as range arbitrage or volatility-based setups.
How to Complete a Futures Long-Short Hedge Transaction on Bitunix (Taking U-Based Contracts as an Example)
Step 1: Select your trading pair
Go to the [futures] tab. Select BTC/USDT (or your preferred pair).
Step 2: Choose leverage and order type
Set 20x leverage. Use a Market Order for faster execution.
Order types supported: limit orders, market orders, and more. Limit orders allow you to set a specific execution price, while market orders are filled at the current market rate.
Step 3: Enter the quantity and place a Buy Long order
Input the amount and click Buy/Long.
Step 4: Repeat the same setup, but place a Sell Short order
Use the same quantity, leverage, and market order — now click Sell/Short.
Step 5: Check your positions
Both long and short should now be open.
