What is one-way and hedge mode?

One-way mode only allows holding positions in one direction under one contract, while Hedge Mode enables holding positions in both long and short directions under the same contract. With One-Way Mode, opening positions in both directions cancels one another out, but with Hedge Mode, it's possible to simultaneously hold positions in both long and short directions.

Why is this important for FUTURES traders?

With Hedge Mode, FUTURES traders can develop strategies to reduce their risk exposure to the market. This involves opening two positions that are opposite in direction, such as a long and a short position, which allows traders to benefit from any market movement while limiting potential losses.