What Is a Reduce-Only Order?
A reduce-only order is an order specifically designed to downsize an existing position. The purpose is to reduce or close positions, and will not increase the position quantity.
How to Use the Reduce-Only Order?
You don’t need to enable this feature manually. Whenever you close a position from the “Current Position” section using any of the following actions, the system will automatically mark the order as "Reduce Position Only":
- Setting take-profit or stop-loss
- Closing positions with a limit or market order
- Closing positions with “Liquidate”
Note: CoinEx does not support manually selecting the reduce-only option. The system will decide whether to apply it based on the action you take.
Rules for Reduce-Only Orders
When you close a position, the system will automatically mark the orders as “reduce-only” and execute them according to the following rules.
1. Only used to reduce position size:
(1) A reduce-only order can only decrease your existing position and will never increase it.
(2) If the total amount of all reduce-only orders exceeds your current position size at the time of order placement, the system will automatically cancel or adjust the quantity of some reduce-only orders to ensure the position does not upsize.
(3) The system decides which orders to adjust or cancel based on order price and submission time. Orders with a higher chance of execution (higher-priced buy orders, lower-priced sell orders) will be prioritized. If multiple orders share the same price, those submitted earlier will be kept.
2. Order Priority Rules
Buy Orders: Higher price = higher priority
Sell Orders: Lower price = higher priority
Same price: Earlier submission = higher priority
| Scenario | Existing Orders | New Order | Result |
BTCUSDT Market, holding 1 BTC When additional reduce-only orders are placed and the total reduce-only quantity exceeds the current position size | Order 1: Sell 0.8 BTC at 110,000 USDT(reduce-only) Order 2: Sell 0.2 BTC at 120,000 USDT(reduce-only) | Sell 0.5 BTC at 100,000 USDT(reduce-only) | New order successfully placed. Order 1 is adjusted to 0.5 BTC (sell), and Order 2 is canceled. |
Order 1: Sell 0.8 BTC at 110,000 USDT(reduce-only) Order 2: Sell 0.2 BTC at 120,000 USDT(non-reduce-only) | New order successfully placed. Order 1 is adjusted to 0.5 BTC (sell), while Order 2 remains unaffected. |
Note: Non-reduce-only orders allow upsizing the position. Therefore, they will not be affected by changes in the priority of new orders or position size.
3. Order quantity limit:
(1) Each position can have up to 150 reduce-only orders (including limit-close and market-close orders).
(2) Orders exceeding this limit will be rejected. To place new orders, please cancel some of the existing reduce-only orders first.
Reminder: Reduce-only orders ensure position reduction only, preventing accidental increases from operational errors. Regularly monitor your orders to comply with system rules and avoid execution failures.