▶ Introduction to Reduce-only Orders

• What is reduce-only?

Reduce-only orders can only close your positions. Reduce-only is only available when there are active open trade positions. . Here are some scenarios:

• The order size of a Reduce-only order should be less than the current position. If the size of the Reduce-only order is greater than the current position, the system will resize the order size. 
• Reduce-only orders cannot be used to open positions. 

Reduce-only is available to these order types: Limit, Market, Bid, and Ask. Kindly note that reduce-only orders are currently not available for API trading. 

• How will WOO X adjust Reduce-only orders?

Any orders for closing positions (including Limit, MKT, Bid, and ASK) need to validate if the total quantity and pending reduce-only orders quantity exceeds the current position. If it exceeds, WOO X will resize the size of pending Reduce-only orders or cancel reduce-only orders to ensure that extra positions will not be opened unintentionally.

Examples

You have 10 BTC and a pending Reduce-only order A ( Sell 6 BTC at 10000 USDT ). Here are some scenarios of the workflow of resizing or closing Reduce-only orders:

• A new order to sell 7 BTC at 9000 USDT: Accept. WOO X will resize order A to 3 BTC since you only have 3 BTC left.
• A new order to sell 11 BTC at 9000 USDT: Accept. WOO X will cancel order A since there are no BTCs left.
• A new Reduce-only order to sell 11 BTC at 9000 USDT: Accept. WOO X will resize the quantity to 10 BTC and cancel order A due to the validation rules of Reduce-only orders. A new Reduce-only order to sell 10 BTC at 11000 USDT: Accept. WOO X will resize the latest Reduce only order (10 BTC) to 4. The system will prioritize the Reduce-only orders which are close to the market price and won't adjust them.
• A new order to sell 10 BTC at 11000 USDT
• Accept if the Margin ratio is sufficient, users can sell more BTC in margin mode. 
• Reject if the Margin ratio is below 50% or in pure spot mode