Crypto trading · Pro
Reduce-only order
What does Reduce-only order mean?
A reduce-only order is constrained to decrease an existing position rather than increase exposure or open an opposite position. The platform may resize or cancel it as the position changes.
Example
After a long position is closed elsewhere, its remaining reduce-only sell order cannot open a fresh short.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Use the correct position mode and check partial-fill behavior. Reduce-only does not guarantee that an exit will fill.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.