Altrady’s Reduce Only – Limit Your Exposure and Lock In Profits

Do you want to keep going in your crypto game and manage your positions with higher precision at the same time?

The Reduce Only feature can assist you in this regard, especially since it plays a crucial role in effective risk management.?

Here’s more on how Atrady’s Reduce Only helps mitigate the risk of overexposure and potential losses in volatile markets.

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What Is Reduce Only

Reduce Only is a type of order that can only reduce the size of your existing position, without opening a new one in the opposite direction.?

For example, if you have a long position of 100 BTC/USDT, and you place a Reduce Only sell order of 50 BTC/USDT, the order will only execute if it can reduce your long position to 50 BTC/USDT or less.

You can rely on ‘Reduce Only’ to manage your risk and prevent unintended position expansion. For instance, you can use Reduce Only orders to set a Take Profit or Stop Loss level for your existing position, without worrying about accidentally opening a new position if the market moves against you.?

This way, you can lock in your profits or limit your losses automatically, without having to monitor the market constantly.

Keep in mind, though, that 'Reduce Only' function is only available for futures exchanges.?

Applying Reduce Only in Altrady

1. Start with an open futures position in Altrady that you wish to either close entirely or partially reduce.

1. Select the 'Reduce Only' option located at the bottom of the order form. The balance at the top of the form will display the remaining balance of your current position.

1. Next, choose the order type for your exit order. Specify the size and price of the order, then proceed to place and review the order.

If you want to place multiple Take Profit orders, you must adjust the size for each order accordingly. Using excessive funds on a lower order may result in the cancellation of the previous higher order, putting your position at risk of not closing completely.?

Alternatively, consider using a Ladder order to simultaneously place multiple Take Profit orders.

1. Now, you can set up a stop limit order to safeguard your position against potential losses. Specify the stop price, limit price, and size, then proceed to place the order.

Check all the details on how to use ‘Reduce Only’ in Altrady in this video tutorial.

How Does Reduce Only Help?

Limit your exposure

Since the feature ensures that positions are only reduced and not increased, it helps you avoid unintentional overexposure to market fluctuations. You’re effectively managing your risk exposure in volatile markets.

More precision for your positions

By incorporating Reduce Only into your trading strategy, you can execute more sophisticated trading maneuvers with confidence. Whether it's scaling in or out of positions, this feature empowers you to execute your strategies with precision.

Avoid liquidation or margin calls

If you’re trading with leverage, you need to maintain a certain margin level to keep your position open. If the market price moves against your position, your margin level may drop below the required threshold, triggering a liquidation or a margin call.?

By using Reduce Only orders, you can reduce your position size and lower your margin requirement before that happens.

The Bottom Line

Reduce Only orders are a handy tool for crypto traders who want to reduce their position size without opening a new one in the opposite direction. Use Reduce Only as part of a comprehensive risk management strategy to protect your capital, lock in your profits, and limit your losses.?

Keep in mind to set clear objectives and monitor market conditions when using Reduce Only, so you can optimize your trading strategy.