A reduce-only order ensures that any order executed only reduce an existing position, preventing the accidental increase or flipping of the position. Traders would use reduce-only orders to lock in profits or prevent further losses without the risk of unintentionally expanding their market exposure.
A Reduce-only order will be accepted only if it serves to reduce an open position.
When a market order reduces the position size, or a more aggressive limit order is set, the reduce-only order will be canceled, as it no longer serves to reduce the position.
For reduce-only orders, we will allow users to submit an order that is below the instrument’s minimum order value only if the order fully closes an open position (i.e. the size of the reduce-only is equal to the position size).
A ‘Reduce-only’ order can be placed with any Order Types and Instructions.
When a position was increased by other trades, all existing reduce-only orders will remain unchanged.
For example:
When a position has been reduced / closed / reversed by other trades, existing reduce-only orders that has an amount greater than the current position will be canceled.
Example 1:
Example 2:
For example, a trader currently has:
Scenario 1: If the trader submits a Limit Sell Order of 1 ETH @ $4,400
Scenario 2: If the trader submits a Limit Sell Order of 1 ETH @ $4,700
Scenario 3: If the trader submits a Reduce-only Limit Sell Order of 1 ETH @ $4,700
A post-only order is a type of limit order that ensures the trader pays only the maker fees and doesn’t take liquidity from the market. If such an order would immediately match with an existing order, it gets canceled instead of executed. This ensures the trader’s order goes into the order book, maintaining the position of a market maker rather than a taker, thereby benefiting from lower fees and contributing to market liquidity.
Post-only orders
A Good Till Canceled (GTC) order remains active in the market until it’s either executed or manually canceled by the trader.
This type of order is beneficial for investors who do not wish to monitor their trades daily but have specific price points at which they wish to buy or sell a security. It ensures that the order will remain rested on the orderbook until it reaches the desired price level or is canceled.
GTC orders
The purpose of an Immediate or Cancel (IOC) order is to ensure immediate execution for as much of an order as possible up to a specified price, with any unfilled part being instantly canceled.
An IOC order is similar but more powerful than a Market Order, because it immediately fills against the orderbook’s rested orders, but only for up to a certain price set by the trader. This provides protection to a trader by preventing slippage beyond their specified price.
However, rapid price fluctuations can cause an IOC order to not be fully executed instantly. In such scenarios, the unfilled portion is immediately canceled, potentially leading to no trade if the market moves too swiftly.
IOC orders
