Understanding Futures Trading
While spot trading allows investors to profit from rising cryptocurrency prices, futures contracts enable traders to capitalize on both upward and downward price movements. For example:
- Going Long (Buy): Profit if BTC rises, lose if BTC falls
- Going Short (Sell): Profit if BTC falls, lose if BTC rises
👉 Discover how top traders leverage futures contracts
OKX offers two primary contract types:
- Perpetual Contracts
No expiration date, with funding rate mechanisms balancing long/short positions - Delivery Contracts
Fixed settlement dates (weekly, bi-weekly, quarterly) where positions auto-close at expiration
Margin Types Explained
All contracts are available with:
- USDT Margining (Stablecoin-based)
- Coin Margining (Collateralized by the traded cryptocurrency)
Step-by-Step Contract Trading Guide
(A) Account Setup Requirements
- Enable Single-Currency or Cross-Currency Margin Mode
- Customize trading preferences (order types, units, etc.)
(B) Trading Perpetual Contracts (USDT Example)
- Transfer assets to trading account
Select:
- Market: Perpetual
- Type: USDT-Margined Contract
Place orders:
- Buy (Long) for bullish positions
- Sell (Short) for bearish positions
Manage positions:
- Set take-profit/stop-loss
- Monitor margin ratios
- Close positions manually or via market orders
👉 Master advanced position management strategies
(C) Trading Delivery Contracts (Coin-Margined Example)
- Transfer assets to trading account
Select:
- Market: Delivery
- Type: Weekly/Bi-weekly Coin-Margined Contract
- Place orders using same long/short mechanics
- Position management mirrors perpetual contracts
Key Features Comparison
| Feature | Coin-Margined | USDT-Margined |
|---|---|---|
| Collateral Asset | Native Coin | USDT |
| P&L Calculation | In Coin | In USDT |
| Best For | Hedging | Cross-Margin |
FAQ Section
Q: Which margin type has lower fees?
A: Fees are identical—selection depends on risk management strategy.
Q: Can I switch between contract types?
A: Yes, but open positions must be closed first.
Q: How does funding rate affect perpetuals?
A: Rates balance market demand—longs pay shorts when bullish, vice versa when bearish.
Q: What's the minimum investment?
A: Varies by contract, typically 1-10 USD equivalent.
Q: How are liquidations calculated?
A: Based on maintenance margin requirements shown in position details.
Q: Is leverage adjustable?
A: Yes, from 1x to 125x depending on risk tolerance.