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Kraken Futures Order Types Explained: Limit, Post-Only, and Reduce-Only

By Freedom251 Team · · 9 min read

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Limit sets the worst acceptable execution price, post-only (also called maker-only) prevents an order from filling immediately, and reduce-only prevents an order from increasing your open position. They control different things, so a resting exit can use post-only and reduce-only together when the current Kraken Futures interface and instrument rules allow that combination.

The three controls answer different questions

When you submit a Kraken Futures order, separate decisions are involved:

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  • Price: How much are you willing to pay for a buy, or accept for a sell?
  • Execution behavior: May the order take liquidity immediately, or must it first rest on the order book?
  • Position effect: May the order open or add to exposure, or may it only reduce an existing position?

A limit order addresses the first question. Post-only addresses the second. Reduce-only addresses the third. Treating them as interchangeable leads to common mistakes: a limit order can fill immediately, a post-only order can be cancelled instead of filled, and a reduce-only order can remain unfilled even though it cannot increase exposure.

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What a limit order does

A limit order specifies a price boundary. For a buy, the limit is the maximum price you will pay. For a sell, it is the minimum price you will accept. If there is not enough opposing demand or supply for an immediate match, Kraken adds the order to the order book at the specified limit price.

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Buy-limit example

Suppose the best available ask is 101 and you submit a buy limit at 99. The order cannot execute above 99. Because the current ask is higher, it can wait in the book until a seller is willing to trade at 99 or a better price. It may fill in full, fill in part, or remain open.

Sell-limit example

If the best bid is 99 and you submit a sell limit at 101, the order cannot execute below 101. It can rest until buyers reach that price. The limit protects your price, but it does not promise that a trade will occur.

When a limit order fills immediately

A limit order is not automatically maker-only. If a buy price reaches or exceeds available asks, or a sell price reaches or falls below available bids, the order can match immediately. The limit still establishes the worst acceptable price; it simply does not prohibit taking liquidity. Kraken documentation says a limit order may also be designated maker-only and/or reduce-only, so these are additional controls rather than different price-order families.

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What post-only (maker-only) changes

Post-only is Kraken’s maker-only form of a limit order. It keeps the limit-price boundary but adds a strict execution rule: if the entered price would execute immediately against the order book, Kraken rejects or cancels the order instead of allowing that immediate match.

Why an order is cancelled

Imagine the best ask is 101 and you submit a post-only buy at 102. That price would cross the available asks. A normal limit order could take the available liquidity, but post-only is not allowed to do so; Kraken cancels or rejects it. The same logic applies to a post-only sell priced at or below the best bid.

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What post-only does not guarantee

Post-only protects maker-only intent, not execution. An order that passes the immediate-match check is placed on the book, but another trader may never trade with it. The order can therefore be cancelled for crossing, remain open, fill partially, or fill later. A post-only setting also does not by itself restrict whether the order opens, adds to, or reduces a position.

Maker-only and post-only terminology

Kraken materials use both “maker-only” and “post-only” for this intent. If the order ticket or an API tool uses one label while educational material uses the other, they refer to the same basic requirement: do not execute immediately; reject or cancel instead.

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What reduce-only does

Reduce-only is a position safeguard. Kraken defines it as allowing only orders that reduce the number of open contracts in an existing position. It cannot open a new position or add to an existing one.

Closing a long position

If you hold a long position, a reduce-only sell can close part or all of that long. It cannot continue selling after the long is gone in order to create a short position. If the requested quantity is larger than the open position, Kraken automatically reduces the quantity to the size of that position, according to its documentation.

Closing a short position

If you hold a short position, a reduce-only buy can cover part or all of it. It cannot buy beyond the amount needed to close the short and leave you long. The control applies to the resulting position, not merely to the direction of the order.

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Reduce-only is not an execution instruction

Reduce-only does not require a resting order and does not require a maker fill. It can be attached to a price that would otherwise execute immediately, subject to the instrument and interface rules. It also does not guarantee a fill: a reduce-only limit can sit unfilled, and a reduce-only post-only order can be cancelled if its price would cross the book.

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Limit, post-only, and reduce-only compared

Control What it controls If the price would cross the spread Can it increase exposure?
Limit The maximum buy price or minimum sell price It may execute immediately; otherwise it can rest on the book Yes, unless reduce-only is also selected
Post-only / maker-only Whether the order must provide liquidity rather than take it Rejected or cancelled instead of immediately executing Yes, unless reduce-only is also selected
Reduce-only Whether the resulting position may only become smaller It does not, by itself, prevent an immediate match No; it can only reduce an existing position

The first two controls concern interaction with the order book. Reduce-only concerns the position after a valid fill. That is why a trader can reasonably want both post-only and reduce-only on one order.

Can post-only and reduce-only be used together?

They address separate risks and may be combined when Kraken’s current Futures interface and the particular instrument support the combination. The intended order is a resting exit that must not take liquidity and must not open or increase a position.

Example: a post-only reduce-only sell

You hold a long position and want to trim it at a higher price. A sell limit is entered above the current bid, with post-only and reduce-only enabled. If the price would immediately match an opposing order, post-only causes rejection or cancellation. If it rests and later fills, reduce-only limits the fill to reducing the long; it cannot reverse you into a short position. If the requested amount exceeds the open long, Kraken can reduce the order quantity to that open-position size.

Example: a post-only reduce-only buy

You hold a short position and want to cover part of it at a lower price. A buy limit is placed where it should rest, with both controls enabled. Post-only prevents an immediate take, while reduce-only prevents the fill from overshooting the short and creating a long.

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Check support before submitting

Combinations are subject to the live order ticket, instrument rules, and API behavior. Do not assume that a control visible for one contract or account mode is available for every other one. Confirm that both toggles or fields are accepted before relying on the order as a protective exit.

How to choose the right order settings

  1. Decide whether the order is an entry or an exit. If it is intended to open or add exposure, reduce-only is inappropriate. If it is intended only to close or trim an existing position, reduce-only is the relevant safeguard.
  2. Set the price boundary. Enter the maximum buy price or minimum sell price you are willing to accept. A limit price does not guarantee a fill.
  3. Decide whether immediate execution is acceptable. If yes, a regular limit order may be suitable. If no, select post-only or maker-only where the current ticket provides it.
  4. Check the book before submitting. A buy that reaches available asks or a sell that reaches available bids may cross. With post-only enabled, that order will be rejected or cancelled rather than filled immediately.
  5. Verify the quantity against the position. For a reduce-only order, request no more than the position you intend to reduce. Kraken may automatically cut an oversized request to the open-position size, but checking the amount prevents surprises.
  6. Review the resulting status. Distinguish an open order from a cancelled or rejected post-only order and from a filled reduce-only order. A cancellation means the maker-only condition was not met; it is not evidence that the position was closed.
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Common scenarios and the correct control

Goal Typical choice Reason
Enter only at your chosen price, while allowing an immediate fill if available Limit It enforces the price boundary but does not forbid taking liquidity
Enter only if the order can first rest on the book Limit plus post-only The order is cancelled or rejected if it would match immediately
Close part of a long without ever opening a short Sell limit plus reduce-only The position may only become smaller
Cover part of a short without becoming long Buy limit plus reduce-only The buy is constrained to reducing the short
Place a maker-only exit that cannot increase exposure Limit plus post-only and reduce-only, where supported One control governs book interaction; the other governs position effect

API and order-event terminology

Kraken’s public Futures order-event schema includes separate orderType and reduceOnly fields. That separation mirrors the trading logic: order type describes the order instruction, while reduceOnly explicitly records the position restriction. An API client should inspect the current reference for the exact accepted values and supported combinations rather than inferring them from a different product or an older client library.

For human-facing tools, look for “post-only” or “maker-only” when you need the no-immediate-match rule, and look for “reduce-only” when you need the no-new-exposure rule. Treat those as independent settings and verify both in the submitted order or subsequent event data.

Troubleshooting rejected, cancelled, or ineffective orders

“My post-only order was cancelled immediately.”

The entered price would have matched the opposite side of the book at submission. Recheck the current best bid and ask, then choose a price that can rest. Because the book can move between viewing it and submitting, a price that appeared passive can still cross at the moment of validation.

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“My limit order filled immediately even though I expected a maker order.”

A regular limit order can take liquidity. If maker-only behavior matters, explicitly select post-only or maker-only; do not rely on the word “limit” alone.

“My reduce-only order did not open the opposite position.”

That is the intended safeguard. Reduce-only cannot add exposure or reverse a position. If the requested size exceeded the open position, the permitted quantity is limited to that position’s size.

“My reduce-only order is still open.”

Reduce-only constrains what a fill may do; it does not force a fill. A limit price may be away from executable interest, and a post-only order must wait for a compatible maker fill.

“The two options are not available together.”

Supported combinations can vary by current interface, instrument, account mode, or API rules. Check the live Kraken Futures order ticket and current API documentation for that contract before building an automated or operational workflow around the combination.

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Important limits of these protections

  • Neither limit nor post-only guarantees execution.
  • Post-only can produce a cancellation instead of a fill when the price crosses.
  • Reduce-only protects position direction and size; it does not protect a chosen exit price.
  • A limit order without reduce-only can increase exposure, even when it is post-only.
  • Exact interface labels, fee schedules, supported combinations, and regional rules can change. Verify live details before submission.

A practical decision rule

Start with the outcome you must prevent. If the unacceptable outcome is paying or receiving beyond a price, use a limit. If the unacceptable outcome is taking liquidity immediately, add post-only. If the unacceptable outcome is opening or increasing a position, add reduce-only. When both outcomes matter for an exit, use post-only and reduce-only together only after confirming that the current contract and interface accept both.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

crypto derivativesKraken FuturesLimit Orderspost-only ordersreduce-only orderstrading basics

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