Reduce-only orders are designed to only reduce or close an existing position, without the risk of unintentionally opening or increasing a position in the opposite direction.

This order type is especially useful for traders who want to manage risk and ensure their order doesn’t result in unwanted exposure.

How It Works

• A reduce-only order will be automatically canceled if executing it would increase your position size in the opposite direction.
  
  

• It ensures that you exit or decrease an existing position, without creating a new one.
  

Best Use Case

Reduce-only is most useful when paired with stop orders, helping you:

• Close a position if the market moves against you.
  
  

• Prevent accidental over-leverage or overexposure.