TRADING GLOSSARY
Reduce-only order
A reduce-only order can decrease or close an existing position but cannot increase exposure or open a position in the opposite direction. Platforms may resize, reject or cancel quantities that would exceed the position available to reduce.
EXAMPLE
In a hypothetical example, an account holds a long position of 10 units. A reduce-only sell for 15 cannot create a short position of 5 units.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure