How to Close and Reduce Positions on GMX

Closing part of a GMX position isn’t just “sell some of it”, a toggle called Keep Leverage determines whether your remaining position’s leverage stays the same or shifts, and getting it wrong can leave you more or less exposed than you intended.

This guide is part of TradeOnDEX’s GMX how-to series within Perpetual Futures, and builds on opening a leveraged position.

Disclosure: TradeOnDEX may earn a commission from links to GMX on this page, at no extra cost to you. Full details at the end of this article.

How to close or reduce a position, step by step

1. Click Close on the position you want to reduce or close.
2. Set your close amount: enter a specific USD amount, or use the percentage slider and quick-select buttons (10%, 25%, 50%, 75%, or full close).
3. Choose your order type: Market for immediate execution at the current oracle price, or TWAP to split the close into smaller orders executed gradually over a duration you set.
4. Decide on the Keep Leverage toggle (see below) before confirming.
5. Confirm the order.

What “Keep Leverage” actually changes

When enabled during a partial market close, Keep Leverage proportionally withdraws collateral alongside the position size, preserving your original leverage ratio on the remaining position. When disabled, reducing size without proportionally reducing collateral shifts your leverage down on the remainder, you end up less leveraged than before, on the same collateral base.

This means for you, concretely: if you want your remaining position to behave the same way (same leverage, same relative risk) after a partial close, you generally want Keep Leverage on. If you’re deliberately trying to de-risk by reducing leverage as you take some profit, leaving it off achieves that automatically.

Risk: what to watch for when closing partially

Keep Leverage set incorrectly for your intent can leave your remaining position more or less risky than you meant. If you wanted to de-lever gradually but left Keep Leverage on, your remaining position keeps the same leverage (and same relative risk) rather than becoming safer. Check this toggle deliberately, not by default habit.

A partial close that would leave collateral below the protocol minimum is blocked outright, not partially executed. This can happen more easily with Keep Leverage enabled, since reducing size also proportionally withdraws collateral, if your intended partial close is rejected, check whether the remaining collateral would fall below GMX’s minimum threshold.

A remaining position under 1 USD is treated as a full close automatically, avoiding a “dust” position, but this means a close you intended as partial can end up fully closing your position if the remainder would be negligible.

TWAP closes reduce market impact on larger positions, but introduce the same execution trade-offs covered elsewhere in this series. Splitting a close over time means each smaller order still executes against real-time liquidity, subject to its own price movement between suborders, similar to the trade-offs covered in Hyperliquid’s TWAP guide.

Market close vs. TWAP close

See it for yourself

Try a small partial close with Keep Leverage both on and off (on separate small test positions) to see exactly how each affects your remaining leverage before relying on either setting for a position that matters. You can review the close dialog directly at gmx.io.

Frequently asked questions

What does the Keep Leverage toggle actually do?

When enabled, it withdraws collateral proportionally to size during a partial close, preserving your original leverage on the remainder; when disabled, your remaining position’s leverage decreases.

Can a partial close request be rejected?

Yes, if it would leave the position’s collateral below GMX’s protocol minimum, the close is blocked rather than partially executed.

What happens if my remaining position after a partial close would be extremely small?

GMX treats a remainder below 1 USD as a full close instead, to avoid leaving a negligible “dust” position.

Is a TWAP close always better for large positions?

It generally reduces market impact for larger size, but it’s still subject to price movement between suborders and takes longer than a single market order, the trade-off depends on how much you prioritize speed versus impact.

Affiliate disclosure

TradeOnDEX may earn a commission if you trade through a link on this page, at no extra cost to you. GMX’s own affiliate/referral terms are still being confirmed for this site, so links here are direct and untracked for now. This article is educational and is not financial advice. See our disclaimer for the full risk warning.