All termsOrders and Trade ExecutionStart here
Reduce Only
Reduce only is an order instruction designed to ensure an order only reduces or closes an existing position rather than increasing it or opening a new position in the opposite direction.
Why it matters to you
Imagine a trader is long 1 BTC and places an order to sell 1 BTC as a take profit. Before that order executes, the trader manually closes the long position. Without appropriate safeguards, the remaining sell order could potentially create an unintended short position depending on the platform. A reduce only instruction is designed to prevent that type of mistake.
Terms that sit next to this one
Close Position
See the perpetuals front
The tools, the live market and the course.