Introduction to Crypto Futures
Cryptocurrency futures (or "contract trading") allow traders to speculate on price movements without owning the underlying asset. OKEX, as one of the leading exchanges, offers a robust platform for both beginners and advanced traders.
Key Concepts:
- Leverage: Amplifies gains/losses (e.g., 10x leverage means a 1% price move = 10% P/L).
- Long/Short Positions: Profit from price increases (long) or decreases (short).
- Margin Requirements: Collateral needed to open positions.
Step-by-Step Trading Process
1. Account Setup
- Register on OKEX and complete KYC verification.
- Deposit funds (USDT, BTC, etc.) into your futures wallet.
2. Understanding the Interface
Order Types:
- Limit Order: Set a specific entry/exit price.
- Market Order: Execute instantly at current market price.
- Liquidation Price: Level at which your position auto-closes to prevent further losses.
👉 Start trading crypto futures today
3. Placing Your First Trade
- Select a contract (e.g., BTC-USDT).
- Choose leverage (beginners should start with 5x–10x).
- Set stop-loss/take-profit orders to manage risk.
Risk Management Strategies
| Strategy | Description |
|----------|-------------|
| Position Sizing | Risk ≤2% of capital per trade. |
| Stop-Loss Orders | Automatically exit losing trades. |
| Hedging | Offset risks with opposing positions. |
👉 Learn advanced risk management techniques
Common Pitfalls to Avoid
- Overleveraging: High leverage increases liquidation risk.
- Emotional Trading: Stick to predefined strategies.
- Ignoring Fees: Taker/maker fees impact profitability.
FAQ
❓ Is contract trading suitable for beginners?
Yes, but start with low leverage and small positions to learn.
❓ How do I calculate liquidation price?
Liquidation Price = Entry Price × (1 ± (1 / Leverage)).
❓ Can I trade futures 24/7?
Yes, crypto futures markets never close.
Conclusion
Mastering OKEX futures requires practice and discipline. Begin with demo accounts, prioritize risk management, and gradually scale your strategies.
👉 Join OKEX now to explore futures trading
Note: Trading involves risks; only invest what you can afford to lose.