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▶ Introduction to Reduce-only Orders

Support Staff
  • Updated

  • 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.

Please note: 

If there’s no position for the selected PERP on the trading page, the reduce-only button is disabled. And reduce-only is also disabled in pure spot mode, and Futures for spot symbols.

Examples

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

  • A new order to sell 7 BTC-PERP at 9000 USDT: Accept. WOO X will resize order A to 3 BTC-PERP since you only have 3 BTC-PERP left.
  • A new order to sell 11 BTC-PERP at 9000 USDT: Accept. WOO X will cancel order A since there are no BTC-PERP left.
  • A new Reduce-only order to sell 11 BTC-PERP at 9000 USDT: Accept. WOO X will resize the quantity to 10 BTC-PERP and cancel order A due to the validation rules of Reduce-only orders. A new Reduce-only order to sell 10 BTC-PERP at 11000 USDT: Accept. WOO X will resize the latest Reduce only order (10 BTC-PERP) 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-PERP at 11000 USDT
    • Accept if the Future Margin ratio is sufficient, users can sell more BTC-PERP in future mode. 
    • Reject if the Future Margin ratio is below 50%
10 BTC-PERP and a pending Reduce-only order A: Sell 6 BTC-PERP at 10000 USDT.

No.

Order Type

Sell

Result

Reason

1

A new order

7 BTC-PERP at 9000 USDT

Accept.

WOO X will resize order A to 3 BTC-PERP since you only have 3 BTC-PERP left.

2

A new order

11 BTC-PERP at 9000 USDT

Accept. 

WOO X will cancel order A since there’s no BTC-PERP left.

3

A new Reduce only order

11 BTC-PERP at 9000 USDT

Accept. 

WOO X will resize the quantity to 10 BTC-PERP and cancel order A due to the rules of reducing only orders.

4

A new Reduce only order

10 BTC-PERP at 11000 USDT

Accept. 

WOO X will resize the latest Reduce only order (10 BTC-PERP) to 4. The system will prioritize the Reduce-only orders which are close to the market price and won't adjust them.

5

A new order

10 BTC-PERP at 11000 USDT

Accept

If the Future Margin ratio is enough, users can sell more BTC-PERP in future mode.

Reject

If the Future Margin ratio is below 50%.

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