what is reduce only in binance

what is reduce only in binance?

The system will automatically implement the “Reduce only” risk control measures and notify the user via email. Once this measure is in place the user will only be able to reduce the position of the contract, and will not be able to increase their position or open new positions.2021年12月8日

In this way,What does reduce only mean in Binance?

The Reduce-only option enables you to create buy and sell orders meant to reduce an existing position without opening an opposite long or short position worth more than the current value of your leveraged assets.

Then,What means reduce only?

Reduce-only orders allow traders to execute buy or sell orders which only reduce a current position, as opposed to opening an opposite long or short worth more than the existing value of your assets, letting you trade without the risk of over-exposing your positions.

Furthermore,What is reduce only order in Binance futures?

“Reduce Only” Trading Restrictions The schedule consists of the trading position size (“Open Positional Notional Value”) of a USDⓈ-M or Coin-M futures contract, the ratio of the position size in relation to the size of the contract, and the gap between the position’s liquidation price and the mark price.

Considering this,How does reduce only work?

Available as an additional option to limit orders, reduce-only orders serve to strictly reduce your position size by dynamically reducing or adjusting your limit order’s contract quantity to match the contract size of the open position. This ensures that your position will not be unintentionally increased.

Related Question Answers Found

What does reduce only mean on FTX?

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.

What happens when I adjust leverage Binance?

To maintain system security and stability, our system sets a max position for different leverages. For example, when you trade BNBUSDT and select 20x, the max position you can hold is 250,000 USDT. Higher leverage results in a lower max position and vice-versa.

Would Increase position for reduce only order?

Reduce Only is a special order condition that only allows you to reduce or close a current position you hold. If a Reduce Only order were to increase your position in any way, it will either be immediately canceled or the contract size will be adjusted to prevent an increase.

Should I mark price or last price?

The mark price is equal to the LAST price unless: Ask Last – the mark price is equal to the BID price.

What is perpetual vs quarterly futures?

For instance, our BTC 0925 is a quarterly futures contract that will expire 3 months upon the date of issuance. On the other hand, perpetual futures contracts, as the name suggests, do not have an expiration date.

What is difference between stop limit and stop market?

A stop-limit order triggers a limit order when a designated price is hit. Whereas a standard market order executes instantly regardless of the underlying security’s price, a stop-order and stop-limit order both execute only when a target price has been met.

What is the difference between stop loss and trailing stop?

The major difference between the stop loss and trailing stop is that the latter is dragged upward by the trail amount as the position’s price rises. In the example, suppose XYZ shares recover after falling from $100 to $97 and rise above $100. Each new high resets your trailing stop price.

What is stop limit order in Binance?

A Stop Limit order is a conditional order over a set timeframe, executed at a specified price after a given stop price has been reached. Once the stop price is reached, it will buy or sell at the limit price or at a better price than the limit price you set.

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