What Are Contract Trades?
While spot trading allows investors to profit from rising cryptocurrency prices, contract trading offers opportunities to profit from both price increases and decreases through "long" (buy) or "short" (sell) positions. For example:
- Going long on BTC: Profit if BTC rises, lose if it falls.
- Going short on BTC: Profit if BTC falls, lose if it rises.
This flexibility enables traders to capitalize on market volatility regardless of direction.
👉 Master contract trading strategies with OKX
Perpetual vs. Delivery Contracts
OKEx (now OKX) offers two contract types:
Delivery Contracts
- Have fixed expiration dates (weekly, bi-weekly, quarterly).
- Auto-settle at expiration using the index price's hourly average.
- Types: USDT-margined or Coin-margined.
Perpetual Contracts
- No expiration date.
Use a funding fee mechanism to balance long/short demand:
- If longs dominate, longs pay fees to shorts.
- If shorts dominate, shorts pay fees to longs.
Both types support USDT-margined (stablecoin collateral) or Coin-margined (crypto collateral) options.
How to Trade Contracts
Step 1: Account Setup
- Enable Single-currency or Cross-currency Margin Mode.
- Customize trading units/order types in contract settings.
Step 2: Trading Perpetual Contracts (USDT-Margined Example)
- Transfer assets from funding to trading account.
Select:
- Currency pair (e.g., BTC/USDT).
- Perpetual → USDT-Margined.
Choose:
- Order type (limit/market).
- Buy (long) or Sell (short).
Monitor positions:
- View margin, P&L, estimated liquidation price.
Close positions:
- Set take-profit/stop-loss or manually exit.
Step 3: Trading Delivery Contracts (Coin-Margined Example)
- Transfer assets as above.
Select:
- Currency pair (e.g., BTC/USD).
- Delivery → Weekly/Bi-weekly/Quarterly Coin-Margined.
- Follow steps 3–5 from perpetual trading.
FAQs
Q: What’s the main advantage of perpetual contracts?
A: No expiry allows indefinite holding, with funding fees balancing market bias.
Q: How does liquidation work?
A: Positions auto-close if losses exhaust margin, preventing negative balances.
Q: Can I switch between USDT and coin margins?
A: Yes, but require separate positions due to collateral differences.
Q: What’s the minimum contract size?
A: Varies by pair; check OKX’s specifications for each contract.
👉 Start trading contracts confidently on OKX
Pro Tip: Use limit orders in volatile markets to control entry/exit prices. Avoid overleveraging—higher risk multiplies potential losses.
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