Futures trading allows investors to profit from both upward and downward price movements of underlying assets. Unlike spot trading, where gains come only from price increases, futures contracts enable users to take long (buy) or short (sell) positions. For instance, going long on BTC results in profits when its price rises and losses when it falls. Conversely, going short on BTC yields profits during price declines and losses during rallies. This flexibility means investors can capitalize on market volatility regardless of direction.
OKX offers two primary types of futures contracts: perpetual contracts and delivery contracts. Delivery contracts have fixed expiration dates. If positions remain open at expiry, they are automatically settled based on the arithmetic average of the index price during the last hour. These contracts are categorized as weekly, bi-weekly, quarterly, or bi-quarterly based on their settlement周期. Perpetual contracts lack expiration dates. To maintain price alignment with spot markets, a funding mechanism is employed: if long traders dominate, they pay funding fees to short traders, and vice versa.
Both perpetual and delivery contracts are further divided into USDT-margined and coin-margined variants. Margins—collateral required to open and maintain positions—can be posted in USDT or the native cryptocurrency (e.g., BTC for BTC contracts). This choice influences risk exposure and profit calculation methods.
Core Mechanics of Coin-Margined Contracts
Coin-margined contracts use the base cryptocurrency as collateral. For example, in a BTC/USD contract, Bitcoin serves as margin. Profits and losses are also denominated in the base currency. This contrasts with USDT-margined contracts, where margins and settlements are in USDT.
Key features:
- Leverage: Amplifies both gains and losses.
- Liquidation: Occurs if losses exceed margin balance.
- Funding Rates (Perpetual Contracts): Periodic payments between long and short traders to anchor contract prices to spot levels.
Setting Up Futures Trading
Account Configuration
- Enable futures trading by switching to single-currency or cross-currency margin mode.
- Customize交易单位 (trade unit) and order types in contract settings.
Trading Perpetual Contracts (Coin-Margined Example)
- Transfer assets from funding to trading accounts (if not already done).
- Select the desired cryptocurrency pair under "Perpetual" > "Coin-Margined" in the trading interface.
- Choose account mode, order type, price, and quantity. Execute "Buy/Long" (bullish) or "Sell/Short" (bearish) orders. Cancel unfilled orders via "Revoke."
- Monitor open positions for metrics like margin, PnL, ROI, and estimated liquidation price.
- Set stop-loss/take-profit orders or close positions manually with limit/market orders.
Trading Delivery Contracts (Coin-Margined Example)
- Ensure assets are in trading accounts.
- Navigate to "Delivery" > "Coin-Margined" and select weekly/bi-weekly/quarterly contracts.
- Follow steps 3–5 from the perpetual contract guide for order placement and management.
Risk Management Strategies
- Position Sizing: Allocate only a fraction of capital to leveraged trades.
- Stop-Loss Orders: Automatically exit positions at predefined loss thresholds.
- Hedging: Use spot holdings to offset potential futures losses.
👉 Explore advanced trading strategies
Frequently Asked Questions
What distinguishes coin-margined from USDT-margined contracts?
Coin-margined contracts use the base crypto as collateral, with profits/losses in that crypto. USDT-margined contracts use USDT for margins and settlements, simplifying profit calculation but exposing traders to base asset volatility indirectly.
How does funding work in perpetual contracts?
Funding rates balance market demand. When long positions outweigh shorts, longs pay funding to shorts (and vice versa). This mechanism ties perpetual contract prices to spot levels.
Can I switch margin modes after opening positions?
No. Margin modes must be set before trading and cannot be changed with open positions. Close all contracts before adjusting modes.
What triggers liquidation in coin-margined contracts?
Liquidation occurs when losses deplete margin balance. Leverage magnifies this risk. Use stop-loss orders and avoid over-leveraging to mitigate.
Are delivery contracts suitable for beginners?
Due to expiration complexity, beginners should start with perpetual contracts. Delivery contracts require understanding settlement procedures and timing.
How are profits taxed?
Tax regulations vary by jurisdiction. Consult local laws regarding crypto derivatives trading. Generally, profits are subject to capital gains tax.