Explanation of Merged Position / Isolated Position Modes
Merged Position and Isolated Position are flexible position management mechanisms provided by NewCoin Perpetual Futures. They allow traders to choose different position management methods for the same trading pair according to their strategic needs, enabling more precise control over risk and returns.
I. What are Merged and Isolated Positions?
This mechanism allows traders to hold, for the same cryptocurrency contract:
A maximum of 1 merged position in the long direction
A maximum of 1 merged position in the short direction
Simultaneously hold N independent isolated positions
Where:
"2" refers to one merged long position + one merged short position.
"N" refers to multiple independent isolated positions.
Each isolated position can have independently set leverage, add/reduce orders, and take-profit/stop-loss parameters, without affecting others.
Strategy Example: A trader can:
Use a low-leverage merged position for medium-to-long-term trend holding.
Simultaneously use high-leverage isolated positions for short-term or high-frequency trading.
This structure effectively diversifies risk, prevents profits/losses from a single position from affecting overall judgment, and makes trading decisions more rational and clear.
II. Merged Position Mode
Merged Position Mode means: For the same trading pair and direction, all newly opened positions are automatically merged and managed as a single position.
Example (BTCUSDT):
Xiaoming currently holds a 100 USDT BTC long position.
He opens another long position of 120 USDT.
The system automatically merges the positions. π Result: Xiaoming holds a 220 USDT BTC long position.
Characteristics of Merged Positions:
Unified position management.
Average entry price is automatically calculated.
Suitable for trend trading and low-frequency trading.
III. Isolated Position Mode
Isolated Position Mode means: For the same trading pair and direction, newly opened positions are not merged but exist as independent positions.
Example (BTCUSDT):
Xiaoming holds a 100 USDT BTC long position.
He opens another long position of 120 USDT.
The system creates a new independent position. π Result: Xiaoming holds two long positions: 100 USDT and 120 USDT.
Characteristics of Isolated Positions:
Each position has independent profit/loss calculation.
Leverage and take-profit/stop-loss can be set separately for each.
Suitable for short-term and multi-strategy trading.
IV. Operation Steps
Step 1: Opening a Position
On the trading page, click [Cross / Isolated] in the top left corner.
Select Merged Position Mode or Isolated Position Mode.
Set the corresponding leverage multiplier.
Enter the position size and confirm the direction (Long/Short).
Recommendations:
Medium/Long-term, low-leverage trading β Merged Position Mode
Uncertain direction or short-term trading β Isolated Position Mode + small position size
Opening Path (App): App β Trading Page β Market Order β Enter Position Size β Select [Cross / Isolated] β Choose [Merged / Isolated Position] β Set Leverage β Buy/Open Long or Sell/Open Short
Step 2: Managing Positions
1) Position Management in Merged Mode In Merged Mode, you can:
Adjust Leverage: Click [Adjust Leverage] within the position. The system will automatically recalculate the margin used based on the new leverage.
Quick Operations: Take-Profit/Stop-Loss, Close Position, Adjust Position Size.
Add/Reduce Position: Add via new merged orders; reduce via closing operations.
Take-Profit/Stop-Loss in Merged Mode:
Full Take-Profit/Stop-Loss: Applies to the entire quantity of the current merged position. Future added quantities are also affected.
Partial Take-Profit/Stop-Loss: Applies only to the existing position quantity at the time of setting. Future added quantities are not affected. When the last price reaches the trigger price, the system executes a market order to close.
2) Position Management in Isolated Mode In Isolated Mode, each position can be operated independently:
Adjust Leverage
Set Take-Profit/Stop-Loss
Add Position (Market / Limit Order)
Close Position
How to Operate:
Click [Adjust Leverage] below the corresponding isolated position.
Click [Add Position] to place a new order for that specific position.
Click [Take-Profit/Stop-Loss] to set the trigger price. Isolated positions do not affect each other, making them suitable for running multiple strategies in parallel.
V. Summary & Comparison
Positions merged in same direction?
β Yes
β No
Independent leverage adjustment?
β No (applies to whole merged position)
β Yes (per position)
Independent TP/SL?
Partially Supported (Full or Partial)
β Yes (per position)
Suitable Strategy
Trend / Medium-to-Long-term
Short-term / Multi-Strategy
Operational Complexity
Lower
Higher
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