Understanding Reduce Only Orders

What is Reduce Only?

Reduce Only is an order setting that ensures an order can only reduce or close an existing position. It prevents the order from increasing your position size or opening a new position in the opposite direction.

For example, if you currently have a Long position of 1 BTC, placing a Reduce Only Sell order for 0.5 BTC will reduce your position to 0.5 BTC.

If the same order is for 1 BTC, it will fully close your Long position.

However, if you do not have a Long position, a Reduce Only Sell order cannot be used to open a new Short position.

In simple terms: Reduce Only means "This order can only reduce my existing position. It cannot increase or reverse it."
 

When is Reduce Only available?

Reduce Only is available only in One-Way Mode.

It is supported for all three order types:

• Limit Order
• Market Order
• Trigger Order

Reduce Only is not available in Multi-Position Mode.
 

How to Change Your Position Mode

You can change your position mode from Trade Settings on both the Flipster App and Web.

On the Flipster App

1. Go to the Trade page.
2. Open Trade Settings.

3. Locate Position Mode.

4. Select One-Way Mode.
5. Confirm the change if prompted.

Once One-Way Mode is enabled, the Reduce Only option will be available when placing supported orders.

On the Flipster Web

1. Open the Trade page on Flipster Web.
2. Open Trade Settings.

3. Locate Position Mode.

4. Select One-Way Mode.
5. Confirm the change if prompted.

After switching to One-Way Mode, you can use Reduce Only with Limit, Market, and Trigger Orders.

Important: Make sure you understand the effect of changing your position mode before confirming the change. Depending on your current positions and orders, you may need to manage them before switching modes.

How Does Reduce Only Work?

The behavior of a Reduce Only order depends on the direction of your existing position.

If You Have a Long Position

A Sell Reduce Only order can reduce or close your Long position.

For example:

• Existing Long position: 1 BTC
• Reduce Only Sell order: 0.4 BTC
• Result: 0.6 BTC Long

The order cannot create a Short position.

If You Have a Short Position

A Buy Reduce Only order can reduce or close your Short position.

For example:

• Existing Short position: 1 BTC
• Reduce Only Buy order: 0.4 BTC
• Result: 0.6 BTC Short

The order cannot create a Long position.

Examples

Example 1: Reducing a Long Position

Suppose you open a 1 BTC Long position at 100,000 USDT.

You want to take some profit if BTC reaches 105,000 USDT.

You place:

• Order Type: Limit
• Side: Sell
• Quantity: 0.5 BTC
• Price: 105,000 USDT
• Reduce Only: Enabled

If the order is filled:

1 BTC Long → 0.5 BTC Long

The order reduces your existing position by 0.5 BTC.

It does not open a Short position.

Example 2: Closing a Long Position

You have a 2 BTC Long position and want to close it completely.

You place:

• Order Type: Market
• Side: Sell
• Quantity: 2 BTC
• Reduce Only: Enabled

Once the order is filled:

2 BTC Long → 0 BTC

Your Long position is fully closed.

Example 3: Reducing a Short Position

Suppose you have a 1 BTC Short position.

You want to close part of the position when BTC reaches 95,000 USDT.

You place:

• Order Type: Limit
• Side: Buy
• Quantity: 0.4 BTC
• Price: 95,000 USDT
• Reduce Only: Enabled

If the order is filled:

1 BTC Short → 0.6 BTC Short

The Buy order reduces your Short position.

It does not open a Long position.

Example 4: Closing a Short Position

You have a 1.5 BTC Short position and want to close it completely.

You place:

• Order Type: Market
• Side: Buy
• Quantity: 1.5 BTC
• Reduce Only: Enabled

Once the order is filled:

1.5 BTC Short → 0 BTC

Your Short position is fully closed.
 

What Happens Without Reduce Only?

Understanding the difference between a regular order and a Reduce Only order is important.

Suppose you currently have:

1 BTC Long

You place a Sell order for 2 BTC.

Without Reduce Only

The order will first close your 1 BTC Long position.

If the remaining 1 BTC is executed, it will open a 1 BTC Short position.

The result will be:

1 BTC Long position  → Closing 1 BTC Long position → Opening 1 BTC Short position 

With Reduce Only

The order is restricted to reducing your existing position.

Your 1 BTC Long can be closed, but the order cannot use the remaining quantity to open a Short position.

The result is:

1 BTC Long position → 0 BTC

This is the main purpose of Reduce Only: to prevent an order from increasing or reversing your existing position.
 

Reduce Only and Take Profit

Reduce Only can be useful when placing an order to take profit from an existing position.

Long Position

You have:

1 BTC Long

You want to sell 0.5 BTC if BTC reaches 105,000 USDT.

You can place a:

Sell Limit + Reduce Only

If the order is filled:

1 BTC Long → 0.5 BTC Long

Short Position

You have:

1 BTC Short

You want to buy back 0.5 BTC if BTC falls to 95,000 USDT.

You can place a:

Buy Limit + Reduce Only

If the order is filled:

1 BTC Short → 0.5 BTC Short
 

Reduce Only and Trigger Orders

Reduce Only is also available for Trigger Orders.

For example, you have a 1 BTC Long position and want to close it if BTC falls to 95,000 USDT.

You can place a Trigger Order with:

• Side: Sell
• Quantity: 1 BTC
• Trigger Price: 95,000 USDT
• Reduce Only: Enabled

When the trigger condition is met, the order is intended to reduce or close your existing Long position.

For a Short position, the opposite applies:

• Side: Buy
• Reduce Only: Enabled

This can be used to reduce or close the Short position when the trigger condition is met.
 

Reduce Only Is Available for All Supported Order Types

Reduce Only can be used with:

Limit Orders

Allows you to specify the price at which you want to reduce or close your position.

Example:

1 BTC Long position → Sell 0.5 BTC Limit + Reduce Only

Result:

0.5 BTC Long position remaining after execution.

Market Orders

Allows you to reduce or close your position at the available market price.

Example:

1 BTC Long → Sell 1 BTC Market + Reduce Only

Result:

Position fully closed.

Trigger Orders

Allows you to set a trigger condition for an order intended to reduce or close your position.

Example:

1 BTC Short → Buy 1 BTC Trigger + Reduce Only

Result:

The short position can be closed when the trigger condition is met, and the resulting order executes.
 

Common Scenarios

Important Things to Remember

1. Reduce Only is available only in One-Way Mode.
2. Reduce Only is not available in Multi-Position Mode.
3. Reduce Only is supported for Limit, Market, and Trigger Orders.
4. A Reduce Only order can only reduce or close an existing position.
5. A Reduce Only order cannot be used to open a new position.
6. A Reduce Only order cannot reverse your position from Long to Short or from Short to Long.
7. For a Long position, use a Sell Reduce Only order to reduce or close the position.
8. For a Short position, use a Buy Reduce Only order to reduce or close the position.
9. If you do not have an existing position, a Reduce Only order cannot open one.
10. You can change your position mode under Trade Settings on both the Flipster App and Web.
11. Make sure you understand your current position and position mode before placing an order.
12. If your intention is to close your entire position, it is also highly recommended to use the “Close” function in your positions tab. This is to minimize the risk of opening a new position unintentionally.

Risk Warning:

Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.

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