Understanding Contract Trading
Contract trading has become increasingly popular among investors, especially after major cryptocurrency fluctuations. Unlike spot trading that deals with immediate transactions, contract trading involves agreements to buy or sell assets at predetermined future prices. This guide will walk you through the fundamentals of OKX contract trading with clear, actionable steps.
OKX Contract Trading Step-by-Step Process
1. Determining Trade Direction
- Analyze BTC price trends to decide between long (buy) or short (sell) positions
Select your contract type based on timeframe:
- Weekly: Expires nearest Friday
- Bi-weekly: Expires second-nearest Friday
- Quarterly: Expires last Friday of March/June/September/December
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2. Executing Your Trade
- Choose appropriate entry price and position size
- Required保证金 = (Contract value) ÷ (Leverage multiplier)
- Ensure your account equity ≥ trade保证金 before ordering
3.保证金 Models Explained
| Feature | Cross-Margin | Isolated Margin |
|---|---|---|
| Risk Calculation | Combined across all positions | Per-position basis |
| Margin Call | When equity < 10% (10x) or 20% (20x) of保证金 | When position保证金率 ≤ 10% (10x) or 20% (20x) |
| Flexibility | Can use entire account balance | Margin locked per position |
4. Post-Trade Management
- Monitor your position's unrealized P&L
- Adjust leverage or add保证金 as needed
- Use stop-loss orders to manage risk
5. Settlement Process
- Automatic平仓 at expiration using交割指数
- Profits recorded as "Realized P&L"
- Losses distributed among net盈利 accounts if needed
- Final清算 updates account balance
OKX Fee Structure
| Product | Fee Range |
|---|---|
| Spot Trading | 0.10%-0.15% |
| Leveraged Tokens | 0.01%-0.098% |
| Futures | 0.02%-0.05% |
| OTC | Fee-free |
Key Advantages of Contract Trading
- Capital efficiency: Control larger positions with less capital
- Bidirectional opportunities: Profit from both rising and falling markets
- Flexible leverage: Choose between 1x-100x based on risk appetite
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FAQ Section
Q: What's the minimum account balance for contract trading?
A: No fixed minimum, but your equity must cover the required保证金 for each trade.
Q: How does liquidation work?
A: Positions automatically close when保证金 thresholds are breached to prevent further losses.
Q: Can I change保证金 modes after opening positions?
A: Only when you have no active positions or pending orders.
Q: What happens at contract expiration?
A: All open positions settle automatically at the交割 price.
Q: Is contract trading riskier than spot?
A: Yes, due to leverage amplifying both gains and losses. Proper risk management is crucial.
Q: How are fees calculated?
A: Fees apply when opening AND closing positions, typically as a percentage of trade value.
Risk Management Tips
- Start with lower leverage (5x-10x) as a beginner
- Never allocate more than 5-10% of capital to a single position
- Use stop-loss orders for every trade
- Regularly monitor open positions
- Consider分散投资 across different contract types