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.
Last updated
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.
Last updated
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.
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.
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.
