What is reduce-only in futures trading?

Last updated: 2026-10-15

A reduce-only order can only make your current position smaller. It will never open a new position or flip your long into a short (or the other way round). Tick Reduce Only on the order form to use it.

Why use reduce-only?

Positions on Xoibit are one-way: an opposite order reduces your position, and if it is larger than the position, it closes it and opens one in the other direction. Reduce-only removes that risk. It is useful for closing orders placed in advance, such as a limit order to take profit at a target price.

How do I place a reduce-only order?

1. Open the pair on the futures page where you have an open position.
2. Choose the side that closes it: Sell for a long position, Buy for a short position.
3. Tick Reduce Only.
4. Enter the price (for a limit order) and the amount, then place the order.

Why was my reduce-only order rejected?

• No open position. Reduce-only needs an open position on that pair ("Position already closed").
• Wrong side. A buy reduce-only only works on a short, a sell reduce-only only on a long ("Reduce only order is rejected").
• Amount too big. The amount cannot be larger than your position ("Reduce only order amount is higher than position amount").
• One already exists. You can have only one open reduce-only order per side on a pair ("You already have a reduce only order"). Cancel it in Open orders to place a new one.
• Minimum holding time. Some pairs need the position to be held for a minimum time before it can be reduced.

A reduce-only limit order only reduces the position when it fills. Until then your position stays open at its full size.