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Position management

How to close a perpetual position

Learn full and partial closes, opposite-side orders, reduce-only protection, and the difference between closing and liquidation.

01

Closing requires opposite-side execution

A long is reduced by selling; a short is reduced by buying. The position closes fully when the executed opposite quantity equals the open quantity.

02

Partial closes change the remaining risk

Closing part of a position realizes P&L on that quantity while leaving the remainder exposed. Margin, liquidation price, and average entry display may update according to venue rules.

03

Use reduce-only for planned exits

Without reduce-only, an oversized or late exit order can open exposure in the opposite direction after the original position closes.

Liquidation is not a normal close. It is a venue-controlled risk action and may include additional costs.

04

Confirm that exposure actually reached zero

Submitting an opposite-side order is not the same as closing. The order can be rejected, partially filled, or priced away from the market. It can also reverse the position if its quantity exceeds what remains and reduce-only protection is absent.32

After any manual, stop, or take-profit exit, verify filled quantity, average fill, fees, realized P&L, remaining orders, and remaining position. Provider documentation may define several closing paths with different trigger and fee behavior.1

05

Post-close reconciliation

A clean close should leave the expected remaining quantity, no unintended reversal, and no stale exit order capable of opening new exposure. Compare the provider’s fill records with the position row and account balance rather than relying on a success toast.21

Record average exit, realized P&L, fees, funding or rollover, collateral returned, and any rejected or cancelled quantity. If the order outcome is uncertain, query authoritative state before submitting another close.1

Decision rehearsal

Check your understanding

Scenario 01

Which statement correctly reflects “How to close a perpetual position”?

Scenario 02

Which approach is most consistent with the lesson?

Source desk

Sources and review

Source 1 / SEC Investor.gov / accessed 28 July 2026Types of ordersSource 2 / U.S. Commodity Futures Trading Commission / accessed 28 July 2026Perpetual contracts and derivatives riskSource 3 / U.S. Securities and Exchange Commission, Investor.gov / accessed 28 July 2026Types of orders
Revision history

Mechanics, terminology, links, and examples checked.

Initial publication.

2026-10-26

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