How do trading fees work in hedge mode with a long and a short open?

Hedge mode vs one-way mode

In one-way mode a contract holds one position: an order in the opposite direction reduces or closes it. In hedge mode (also called two-way mode) you can hold a long and a short on the same contract at the same time, and they don't close each other — each has its own entry price and PnL. OKX and BingX both describe the modes this way; on BingX, hedge mode is the default for perpetual futures.

Same rate, more trades

The maker and taker rates are the same in both modes. BingX's own guide says so, and adds that hedge mode can mean higher total trading costs because you open two sides. The arithmetic: each side pays a fee on its notional value when it opens and again when it closes (see how futures fees are calculated).

• One position, opened and closed with market orders: 2 × the taker fee on the notional
• A long and a short of the same size, both opened and closed with market orders: 4 × the taker fee on the notional of one side

At a 0.05% taker rate, a fully hedged round trip costs about 4 × 0.05% of the size of one side — while the price risk of the pair is close to zero. Legs closed with limit orders that rest in the book pay the lower maker rate instead (see maker vs taker fees).

Funding on both sides

Funding is exchanged between longs and shorts and calculated on each open position (see what a funding fee is). If the long and the short are the same size, the payment on one side roughly offsets the payment on the other at each funding time. If the sizes differ, the larger side decides the net. Funding never offsets the trading fees — those are paid either way.

Margin is not free either

Both sides use margin, so a hedge ties up more capital than a single position. How much margin the exchange requires for a hedged pair depends on its own rules.

When hedge mode costs more than it saves

A hedge makes sense when you want to keep a position through a short stretch of risk without closing it. It is an expensive way to "freeze" a trade for days: you pay two extra fees to open and close the hedge, and the position keeps using margin. And opening opposite positions only to generate trading volume always loses money — a fee rebate returns part of each fee, never more than you paid.

Switching modes

The setting sits in the futures preferences — on BingX: the three-dot menu → Preferences → Position Mode — and usually applies to all contracts. BingX asks you to close open positions and cancel open and trigger orders before you switch.