If you are looking for information on other order options on Kraken.com, you can find out how here!
In addition to common order options available on trading platforms, Kraken offers additional order options for advanced traders. These order options offer you more flexibility with your orders and allow you to be specific on how you would like spot positions on margin* to be closed if the open order is executed. Other order options include: Order Start/Expiration Time, Trading Fee Currency Preference and Post Limit orders.
This prevents placing a limit buy order that instantly matches against the sell side of the order book (and vice versa for sell orders) which would result in taker fees. The order will either get posted to the order book or be cancelled, ensuring a maker fee when executed.
Note: The Post limit order option is not currently available for Take profit limit and Stop loss limit order types.
This option ensures that the order will only reduce a currently open position, not increase it or open a new position.
Reduce-only trading behavior (for limit and market orders)
If the existing position is smaller than the reduce-only order, then the position will be closed and the residual canceled to prevent opening a new position in the opposite direction.
If there is no existing position, the reduce-only order will be rejected.
If the existing position would be increased, the reduce-only order will be rejected.
Trigger order types
Trigger order types (i.e. stop-loss, take-profit and trailing-stop) are not placed into the visible book until their trigger conditions are met.
If there is no existing position, the reduce-only order will be rejected.
Trigger order types provide clients with more flexibility in size and timing when using the reduce-only flag, i.e. reduce-only trigger orders will be accepted even if a position does not exist when the trigger order is created.
Order book maintenance
When a reduce-only order is placed, position checks are performed to avoid non-tradable liquidity in the book.
Book maintenance equalises the size of the reduce-only orders in the book to the same size as the position. The worst placed orders in the book (reverse price-time priority) will be resized or canceled until the cumulative reduce-only size matches the position size.
Reduce-only order book maintenance can also be performed at match time.
Examples:
You have a Long BTCUSD open position with 1 BTC Volume.You want to close the position and submit a Sell market order with 1.1 BTC sell volume. If the ‘Reduce only’ option is selected, The reduce-only order would be automatically resized to match position size, the position would be closed and the remaining order quantity cancelled back to client. Note: If trading via Kraken Pro this platform have extra restrictions to prevent oversized reduce-only orders from being entered.
You opened a Long BTCUSD position with 1 BTC Volume and 5x Leverage @ 50,000 USD.
You want to close the position if the price rise above 60,000 USD and submit a limit Sell order with 1 BTC sell volume, limit price 60,000 USD and ‘Reduce only’ option.
Before the order is executed, the BTC price goes to 45,000 USD and you decide to sell half of your position by submitting a market Sell order with 0.5 BTC Volume and 5x Leverage. The order gets executed and your current position is decreased to 0.5 BTC. Since your current position value is now below the ‘Reduce only’ order volume, the order will be resized to match position volume
You opened a Long BTCUSD position with 1 BTC Volume and 5x Leverage @ 50,000 USD. You want to close your position either by taking profit if BTC goes to $55,000 or by stop loss if BTC goes to $45,000.
Since ‘Reduce Only’ trigger orders are only assessed once triggered, you can submit a Take-profit ‘Reduce only’ order with profit price @ $55,000 and simultaneously a stop loss order with stop price @ $45,000.
After some time, BTC price reaches $55,000. This triggers the take-profit order and your position is closed. As a consequence, the remaining ‘Reduce only’ stop-loss order would be cancelled if triggered.
This dropdown sets your preference for the currency in which your non-margin fees are determined if the order is filled. But it won't necessarily give you your choice (for example, if you set it to a currency in which you have zero balance).
Note that:
The setting applies to the current order only (it isn't a global setting for future orders as well).
The setting does not apply to margin fees. Margin fees (if applicable) are charged in the currency that is provided by Kraken to you to facilitate your ability to open the spot position on margin (if available).
There are two prices that can be used to trigger stop loss, take profit, stop loss limit and take profit limit orders:
Last Price
Index Price
For definitions, please refer to our article on price terminology.
Trigger signals can be selected in the order form under 'More Options' tab , available when a stop loss (limit) or take profit (limit) is selected and a corresponding index is available.
Example:
You have a long position on ETH open and the current ETH/USD price is 1,800. You don't want to close your position below 1,500, so you open a sell stop loss limit order with the stop price set to 1,650, trigger signal is set to “Index” and limit price set to 1,500
The “Index” price falls below 1,650, triggering your stop price. A limit order will then be opened to fill at 1,500(or better).
It is important to note that if any sudden price move was experienced on Kraken only, leading the price to fall below 1,650 while the prevailing market price was above, this “index based” stop limit order would not be triggered. For this order to be triggered, the index price is required to fall below the Stop price set.
This option allows you to customize the time in which your order is cancelled if it isn't filled.
Good til canceled (GTC): The order will be placed and will remain in the orderbook until it is filled or manually canceled.
Good til Date (GTD): The order will be placed and will remain in the orderbook until it is filled or the specified expiration date and time transpires.
Immediate or Cancel (IOC): The order will be placed and if it is not immediately filled, it will be cancelled and removed from the orderbook. If the order is only partially executed, the remaining, non executed volume will be cancelled. This will be reflected in the order details as “Immediate or cancel” reason.
*Availability of margin trading services is subject to certain limitations and eligibility criteria.
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.