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%. |