Reduce-only orders enable traders to execute buy or sell orders that solely reduce an existing position, rather than opening a new position in the opposite direction that could exceed the current asset value. This allows for trading without the risk of overexposing existing positions. Orders labeled as "reduce-only" will be automatically canceled if they would potentially increase the position size in the opposite direction. While the reduce-only designation can be applied to any order type, it is particularly valuable when used in conjunction with stop orders. For information on further order types, visit Delta Order Types. For video demonstrations, visit the Delta Youtube channel.
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