A close instruction must match a position.
Reduce-only constrains a derivatives order so it reduces an existing position rather than increasing exposure. It does not independently guarantee execution. Price, available quantity, position mode and venue validation still apply.
The relevant position is the one for the selected account, instrument and direction. A long BTCUSDT position in one account does not authorize a close in another account, a different contract or the wrong hedge leg.
Follow a fictional long position.
Assume a linear long position of 0.300 BTC and no competing close orders. The examples below discuss position quantity, not margin or a recommendation to trade.
| Instruction or event | Position consequence |
|---|---|
| Reduce-only sell of 0.100 BTC fills completely | The long decreases to 0.200 BTC. |
| The remaining 0.200 BTC closes elsewhere | There is no long position left for a further long-close instruction. |
| A new reduce-only sell arrives with no open position | Bybit rejects a reduce-only order without an open position. |
A normal sell without the constraint can have a different result under the account’s position mode. This is why a protective close should not be treated as an ordinary new entry with a different label.
Oversized closes and competing orders.
The live position can change between entering an amount and matching the instruction. Bybit documents rules that can reduce or cancel oversized reduce-only quantities, including interactions with other active orders. Do not assume every exchange handles the remainder identically.
Read the current position and existing close orders after a partial fill. If the position is already zero, reducing the requested amount slightly will not create a position to close. Inspect whether the intended account, symbol and hedge direction were selected.
Reduce-only, stops and position mode are separate.
A stop needs a trigger condition; a limit needs a price instruction. Reduce-only adds a position constraint. Combining labels does not remove their separate requirements. A triggered stop can still face liquidity or account restrictions when execution is attempted.
Hedge mode can hold separate long and short legs. One-way mode has a different position representation. Use the supported close action for the selected position instead of assuming a side alone identifies the correct leg. An accepted cancellation also does not reverse a fill that already occurred.
A Spot sell has a different ownership check.
Fully funded Spot trading exchanges assets in a wallet. It does not use the derivatives Reduce-only flag. In Schizo’s combined Bybit Spot workflow, a sell uses available owned base assets without borrowing. An existing asset balance is different from an open futures position.
Daily Risk and entry restrictions can distinguish a verified owned-asset exit from a new entry. Schizo does not automatically liquidate Spot holdings when its derivatives automatic-close protection activates. Read the shared-wallet explanation for the exact scope.
For a rejected derivatives close, inspect current positions and the venue’s message first. A clear zero-position rejection describes account state; retrying it as an unrestricted entry changes the instruction’s purpose.