Explanation of Merging/Splitting in 3EX Futures Trading – Help Center

3EX has launched a merging/splitting function for futures trading, enabling users to hold multiple positions in different directions simultaneously while trading the same cryptocurrency pair. This aids traders in devising flexible trading strategies, handling every independent trading judgment more calmly and clearly, effectively reducing the influence of existing positions, and arranging the overall position layout rationally.

What are Merging and Splitting Modes?

Merging Mode

Orders of the same direction (long or short) and under the same trading pair will be combined into one position.
There can be at most two positions for the same trading pair: one long and one short.
Stop-loss and take-profit settings can only be applied to the merged position in the same direction (long or short).
New positions created after adjusting the leverage (can only be increased, not decreased) will merge with existing positions, with the position displaying the merged leverage multiple.

For instance, under the BTCUSDT trading pair, trader A holds a long position of 10 contracts. Later, opened 9 more long contracts. The system will merge these two long positions, resulting in a total of 19 long contracts held. In the merging mode, there can be a single position in one direction of long or short, or one position in each of the long and short directions, totaling two positions.

Splitting Mode

Allows for the creation of multiple positions under the same trading pair and in the same direction; new positions will not merge with existing positions.
Each position can independently set take-profit and stop-loss settings.
If the margin mode is isolated margin, each independent position can adjust the margin and leverage individually.
If the margin mode is cross margin, all positions share the total margin available in the contract account and cannot independently adjust the margin and leverage.

Taking BTCUSDT as an example, trader B holds a long position of 9 contracts and later opens 19 more long contracts. This will create a new separate position, and trader B will ultimately hold two long positions: one of 9 contracts and another of 19 contracts. Each independent position does not interfere with the others and is settled independently.

What are the Advantages of Merging/Splitting Function?

1.Diversifying Position Risks

By splitting positions with isolated margin, you can establish multiple positions on the same contract, each having different opening prices, effectively hedging against different market trends. This risk diversification strategy helps reduce the impact of a single position on your trading portfolio, avoiding the collective liquidation risk present in the cross margin merging mode.

2.Increasing Trading Flexibility

The splitting mode offers greater flexibility, allowing you to add, reduce, or close different positions at any time to adapt to diverse trading strategies and market conditions, thus better managing your trading portfolio.

3.Enhancing Capital Efficiency

The splitting mode enables more efficient use of your capital. You can hold multiple positions with different leverages, making better use of available margins, thereby expanding your trading scale and improving capital utilization.

4.Testing Trading Strategies

With the splitting function, you can open different positions based on various trading indicators, implementing a diversified trading tactic. This feature facilitates backtesting various tactical indicators, accumulating trading strategy experiences, and better coping with market fluctuations.

5.Reducing Holding Costs

For traders who frequently adjust their positions, the splitting function can reduce costs. Compared to the slippage possibly triggered by market orders, the splitting mode can minimize the adverse effects of slippage, hence better controlling your holding costs.

How to Set Merging/Splitting Mode?

Opening a Position

On the 3EX futures trading page, click the trading mode button near the leverage multiple at the top left corner of the right operation area. Set the position mode in the trading mode popup window according to your trading needs, choosing either "splitting" or "merging" mode, and then click "confirm."

Managing Positions

Under merging mode, you can adjust the leverage of existing merged orders via the "adjust leverage" button on the opening position. Stop-loss and take-profit settings can only be set for the overall position after merging. Partial closing affects the holding cost and estimated liquidation price of the remaining position.
Under splitting mode, each position can independently adjust leverage, add or reduce positions, and set take-profit and stop-loss settings. Each independent position's closing and liquidation are settled independently, not affecting other positions.
Through a proper understanding and utilization of merging/splitting functions, traders can craft more flexible and rational trading strategies, effectively mitigating risks and enhancing clarity in trading judgments.