Reduce-only orders can only close your positions. Reduce-only is only available when there are active open trade positions. Here are some scenarios:
- If the size of the Reduce-only order is greater than the current position, the system will resize the order size when it’s triggered.
- Reduce-only orders cannot be used to open positions.
Reduce-only is available to these order types of PERP trading: Limit, Market, Stop, Trailing Stop, and TP/SL.
How will WOO X adjust Reduce-only orders?
Reduce only orders are guaranteed to only reduce or close out a position. The quantity of a reduce only order may get down sized to ensure that new positions will not be opened unintentionally.
If there’s no position for the selected PERP on the trading page, the reduce-only button is disabled for the Market or Limit orders. Reduce-only is not available for spot symbols.
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:
|10 BTC-PERP and a pending Reduce-only order A: Sell 6 BTC-PERP at 10000 USDT.|
|1||A new order||7 BTC-PERP at 9000 USDT||Accept.||WOO X will cancel order A 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 cancel the latest Reduce only order (10 BTC-PERP) once order A is triggered due to you only have 4 BTC-PERP left.|
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%.|
What is market/limit close?
Market/limit close works similarly with reduce-only which will only move your position toward closing.
- Market close: close a selected percentage of your position using a market order.
- Limit close: close a selected percentage of your position using a limit order.
Market/limit close can be used not only in PERP positions but also in spot positions.
Maximum close quantity varies by the position types:
- Pure spot token: holding - quantity locked up in pending orders
- Marginable token: holding + interest
- PERP positions: holding
If market closing a spot margin position or a PERP position would result in failing to meet the initial margin requirement, your pending (non-trigger) orders with the same side and the same instrument as the market close order will be canceled. This mechanism also applies to trigger market orders such as stop market, trailing stop, and positional TP/SL orders such that when these orders get triggered, a margin ratio check will be performed and your pending orders may get canceled if the check fails.