Reduce-Only Orders

Looking to manage your trades without extra risk? Reduce-Only orders on BSX are here to help. This feature ensures your order only reduces your current position, never increases it or opens a new one.

What is a Reduce-Only Order?

A Reduce-Only order is a safety tool that:

• Only reduces your existing position (e.g., sell if you’re long, buy if you’re short).

• Prevents accidental increases to your position or opening new trades.

• Helps you avoid unintended exposure in volatile markets like crypto.

How does it work on BSX?

• You must already have a position:

  • Long position: Place a Reduce-Only sell order.

  • Short position: Place a Reduce-Only buy order.

• The order size can’t exceed your current position:

  • No other active orders: The Reduce-Only order must be equal to or less than your position size.

  • Have other orders: The total size of the new order plus unfilled orders closer to the market price can’t go over your position size—otherwise, it’s rejected.

• If a new order might flip your position (e.g., turn a long into a short), BSX auto-cancels any Reduce-Only orders that would cause that, starting with the ones furthest from the market price.

• Available with Time in Force (TIF) options:

  • Good-Til-Canceled (GTC)

  • Good-Til-Time (GTT)

  • Immediate-Or-Cancel (IOC)

  • Fill-Or-Kill (FOK)

Example in Action:

Let’s say you’re long 2 BTC-PERP contracts on BSX Perpetual with 50x leverage at $100,000. You set a stop-loss at $99,000 and a take-profit at $102,000. Here’s what happens with and without Reduce-Only:

• Without Reduce-Only Option: If the price hits your stop-loss at $99,000 first and then climbs back to $102,000, your take-profit order might execute accidentally opening a new short position at $102,000 with max size. Not what you wanted!

• With Reduce-Only Option: If the price hits your stop-loss at $99,000, BSX auto-cancels your take-profit order at $102,000 since your position is already closed. This prevents any unintended new trades.

Why Use Reduce-Only Orders on BSX?

• Risk control: Avoid accidental overexposure when trading high-leverage perps.

• Stay organized: Keep your strategies clean, especially when managing Sub-Accounts.

• Avoid costly mistakes: In crypto’s volatile market, a Reduce-Only order stops you from accidentally doubling down on a losing position or opening a new trade when you meant to exit.

• Perfect for high stakes: With 50x leverage, the stakes are high. Reduce-Only orders let you lock in profits or cut losses without overextending your position.

• Control your Buy/Sell Size:

  • Set the exact size you want to buy or sell at your chosen price. Unlike before, where you could only adjust stop-loss or take-profit percentages, Reduce-Only lets you take profits or cut losses with the size you want.

  Example:

  • You’re short 3 ETH at $2,588, and the current price is $2,540, you’re in profit. Want to take 50% profit at $2,400? Just place a Reduce-Only order for 1.5 ETH at $2,400 with GTC as the TIF. When ETH hits $2,400, the order triggers, and you’ve locked in profit on 1.5 ETH from your position. Or, if you’re in a loss, simply adjust the price and size to reduce your position as needed.

  • Manage Orders with GTT Automation: Take control of your orders by setting them to activate or auto-cancel with GTT. They’ll only be active during your set time window—if the time expires, they cancel automatically.