How to Use Reduce Only Order on BYDFi (APP)

A Reduce Only order is a special type of order designed to reduce or close an existing position — it will never increase your position size or open a new one. This order type is widely used for risk management and capital control, helping traders avoid overexposure and unexpected reverse positions.

Key Benefits of Reduce Only Orders

• ✅ Risk management: Prevents unwanted increases in exposure.
• ✅ Capital control: Lets you scale down positions according to market conditions.
• ✅ Trade protection: Avoids accidental reverse orders when stop-loss or take-profit orders are triggered.

👉 In short, Reduce Only ensures that your order will only decrease your open position size, never add to it.

Example of a Reduce Only Order

A trader holds a long position of 20,000 USDT with:

• A stop-loss set at 18,000 USDT
• A take-profit limit order set at 22,000 USDT

Scenario:

1. The market first drops to 18,000 USDT (stop-loss triggers).
2. Then the price rebounds to 22,000 USDT.

• If the trader enabled Reduce Only, no reverse short position will be opened at 22,000 USDT.
• If Reduce Only was not selected, the 22,000 USDT take-profit order could create a reverse position.

⚠️ This shows how Reduce Only helps avoid unexpected opposite positions.

How to Set a Reduce Only Order on BYDFi

On APP

Make sure you are in One-Way Position Mode (check at the top right of the trading panel).

Tick the Reduce Only checkbox when placing your order.

When to Use Reduce Only Orders

• You want to close or decrease an existing position without risk of opening a new one.
• You are managing stop-loss and take-profit orders.
• You want to prevent reverse orders caused by market volatility.

Summary

• Reduce Only orders are a powerful tool for controlling exposure in derivatives trading.
• They ensure that your trades will only reduce your current position, never increase it.
• Ideal for stop-loss and take-profit strategies to avoid reverse positions.
• Available on both BYDFi PC and App platforms.

✅ By using Reduce Only orders on BYDFi, you can trade safer, manage risks effectively, and protect your capital against unexpected market moves.