Perpetual contracts allow traders to use their capital as margin, leveraging positions to achieve higher returns while accepting increased risks. Choosing a reputable exchange is crucial to avoid unethical practices like excessive slippage or forced liquidation. OKX stands out as a top platform for contract trading with robust features and security.
Getting Started with Perpetual Contracts on OKX
To begin trading perpetual contracts:
- Download the OKX exchange app and register an account.
- Understand core concepts like leverage, margin, and liquidation before trading. Contract trading requires deeper market knowledge than spot trading due to its complexity and risks.
Key Features of Perpetual Contracts
1. Trading Hours
- Perpetual contracts operate 24/7, with settlements every 8 hours (04:00, 12:00, and 20:00 UTC).
- Trading halts briefly during settlements; resumption times vary by asset (e.g., Bitcoin may take longer than altcoins).
2. Trade Types
Opening Positions:
- Buy/Long: Profit from price increases.
- Sell/Short: Profit from price declines.
Closing Positions:
- Sell/Close Long: Exit a long position.
- Buy/Close Short: Exit a short position.
3. Order Types
Limit Orders: Set custom prices/quantities. Options include:
- Post Only (Maker-only).
- Fill or Kill (Complete immediately or cancel).
- Immediate or Cancel (Partial fills allowed).
- Stop Orders: Trigger trades at predefined conditions.
- Market Orders: Execute at current best price (using "Best N Levels" for faster fills).
4. Lightning Close
- Automates closing positions within 30 price levels to minimize slippage during volatility.
5. Position Management
- Positions merge by asset and direction (e.g., all BTC longs consolidate into one).
6. Fees
- Maker Fees: Lower fees for adding liquidity (limit orders).
- Taker Fees: Higher fees for removing liquidity (market orders).
7. Liquidity Depth
- Reflects the spread between adjacent buy/sell orders, indicating market stability.
8. Margin Requirements
- Initial margin varies by leverage (e.g., 10x leverage requires 10% margin).
9. Liquidation Risks
- Positions may forcibly close if margin drops below maintenance levels ("liquidation").
FAQs
Q1: Is OKX safe for perpetual contracts?
A: Yes, OKX employs advanced security protocols and transparent fee structures, making it a trusted platform.
Q2: Can I trade perpetual contracts 24/7?
A: Yes, except during brief settlement intervals every 8 hours.
Q3: What’s the difference between Maker and Taker fees?
A: Makers (limit orders) pay lower fees; Takers (market orders) pay higher fees for instant execution.
Q4: How does leverage affect my trades?
A: Higher leverage amplifies both profits and losses. Always manage risk with stop-loss orders.
Q5: What triggers a liquidation?
A: Insufficient margin to maintain open positions during extreme price swings.
👉 Explore OKX’s contract trading tools
Final Tips
- Start with low leverage to understand mechanics.
- Use demo accounts to practice risk-free.
- Monitor liquidation prices closely during volatility.
By mastering these elements, you can navigate perpetual contracts effectively while mitigating risks. Always prioritize continuous learning and disciplined trading strategies.