Trigger orders can be used to stop loss and not open any opposite positions.
Trigger orders are divided into trigger conditions and executive orders.
Trigger conditions can be set according to the last price or the mark price, and once the trigger price is reached, a pre-set order will be executed.
A triggered order can be executed as a limit or a market order, and you can choose whether to reduce your existing position. When it is a Reduce-only order, the order will close your existing position.
When you set a trigger order with Reduce-only, it can be used to set the stop loss of a position.
e.g. You hold a long position of 1 BTC at the price of 20,000 and want to sell 1 BTC with a stop loss when the price drops to 18,000. Then, you can set the trigger price to 18000, the trade direction to sell, the order type to market, and choose Reduce-only.
Normal case:
When the price drops to 18,000, your Trigger order is triggered, and 1 BTC will be closed according to the market price, resulting in a stop loss.
Your holding quantity in your position is less than the closing quantity:
If your position may only be 0.5 BTC for some reason, when the price reaches 18,000, the trigger order is triggered. Still, because the Reduce-only function is checked, the system will automatically set the closing quantity to the maximum number of closed this position of 0.5. Your position of 0.5 BTC will be closed, and no new position will be opened.