Reduce-only expresses an exit intent rather than a new directional position.
An opposite-side order can do two jobs
Selling decreases a long; buying decreases a short. Without an exit-only constraint, an order larger than the current position can close it and open exposure in the opposite direction.
Reduce-only tells the venue that the order should only decrease an existing position. It is especially useful when several exit orders could otherwise compete against the same remaining size.
Partial and full exits
For a partial exit, choose an amount below the open quantity. For a full exit, use the closable position size and check the market’s size increment. HYPE normalizes orders to that increment before submission.
After a fill, inspect the remaining position and any pending exit orders. A “submitted” message does not prove the position is flat. A limit exit can remain open if the price is not reached.
Check direction and balance effects
A long closes with a sell; a short closes with a buy. Confirm the sign and quantity in the review instead of relying only on a button color.
Closing realizes trading PnL and can free margin. The resulting withdrawable balance still depends on other positions, costs, and account requirements. Do not treat the gross exit value as a withdrawable cash amount.
Avoid an accidental reversal
You hold a 3-unit long. An ordinary 5-unit sell can leave a 2-unit short after the long closes. A valid reduce-only exit is intended to remove existing exposure, not create that short.
Illustrative figures only. Not a price forecast or trade recommendation.Further reading
Protocol details and market rules can change. Check the current specification before trading.
Educational content, not investment advice. Trading perpetuals can result in substantial loss. Market access is subject to eligibility and location. Product disclosures.