Reduce-only Orders
FTX now supports reduce-only orders! These orders can only close your positions.
You can place one by toggling the 'Reduce Only' switch:
You can combine them with any order type: Limit, Market, Stop-loss, or Trailing stop.
The REST, Websocket, and FIX APIs also all support reduce-only orders.
Guarantees
We guarantee that if a reduce-only order is filled, it will not:
- Make you longer if you are already long (or shorter if you are short)
- Make you short if you were previously long (or vice versa)
FTX resizes and cancels existing reduce-only orders to achieve this, prioritizing leaving the most aggressive ones untouched.
Examples
Suppose you are long 10 BTC-PERP and have no open orders. Here are some examples of how reduce-only orders would work:
- You won't be allowed to place reduce-only bids
- If you try to place a reduce-only offer with size 11, it will be resized to 10.
Suppose you are long 10 BTC-PERP and have a reduce-only offer out at price $10,000 for size 6.
- If you place an offer at price $9000 for size 7, your $10,000 reduce-only offer will be resized to 3
- If you place an offer at price $9000 for size >= 10, your $10,000 reduce-only offer will be cancelled
- If you place a reduce-only offer at price $11,000 for size 2 and another reduce-only offer at price $9,000 for size 5, your $10,000 offer will be resized to 5 and your $11,000 offer will be cancelled.
- If you place a reduce-only offer at price $11,000 for size 100, it will be resized to size 4 and your $10,000 offer will not be touched.
- Careful: If you place a non-reduce-only offer at price $11,000 for size 100, nothing will happen to your $10,000 reduce-only order! This is because if you don't cancel either order, your $10,000 reduce-only order is guaranteed to be filled before the new $11,000 one: the reduce-only order will not increase your position size, but the non-reduce only order will (which is allowed).
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