I have a situation where i have open position long for example at 400 dollars and then put a limit reduce only order at 405 for the profit, it works fine until the price drops (for example i have 4k open position long and unrealized p&l of -30 dollars), i open a position of long and sell at a higher price but i have negative balanced. how that works?
ReduceOnly is used to ensure that after the order is executed, the position does not change direction.
Example: A SELL order with reduceOnly of 50USDT against a position of 40USDT will fail. Or a BUY order of 50USDT against a position of -40USDT will fail.