How to Trade Contracts on OKX? A Step-by-Step Guide to Futures Trading

What Is Futures Trading in Crypto?

Futures trading has existed in traditional markets for decades, but cryptocurrency futures trading is a relatively new phenomenon. Leveraging features like margin trading, T+0 settlement, and bidirectional trading (buying long or selling short), crypto futures have gained popularity among investors. However, the complexity of rules often leaves beginners confused. This guide breaks down the process step by step.

Step-by-Step Guide to Futures Trading on OKX

1. Account Setup and Fund Transfer

• Log in to your OKX account (👉 create a new account here if needed).
• Navigate to the "Trade" tab and click "Transfer."
• Select the currency (e.g., USDT for USDT-margined contracts, BTC for coin-margined contracts).
• Move assets from your "Funding Account" to "Trading Account."
• Enter the amount and confirm.

2. Select Contract Type and Pair

• Click the currency pair dropdown (top-left) and search for your preferred token (e.g., BTC).

• Choose between:

  • Perpetual Contracts: No expiry date; positions can be held indefinitely.
  • Delivery Contracts: Fixed settlement dates (weekly, quarterly, etc.).

Margin Types:

• USDT-Margined: Uses USDT as collateral; profits/losses settled in USDT.
• Coin-Margined: Uses the traded token (e.g., BTC) as collateral.

3. Choose Position Mode: Isolated or Cross

• Isolated Margin: Risks/rewards per position are independent.
• Cross Margin: All positions share pooled collateral; profits/losses offset each other.

4. Place Your Order

• Buy (Long): Profit if the price rises.
• Sell (Short): Profit if the price falls.

5. Monitor and Manage Positions

• Check open positions under the "Positions" tab.
• Set stop-loss/take-profit orders or manually close positions.

Key Risks and Calculations

Liquidation Warnings

• Warning: Triggered when margin ratio ≤ 300%.
• Liquidation: Occurs at ≤ 100% margin ratio.

Profit/Loss Formulas

• Unrealized P&L:

  • Long: (Mark Price − Entry Price) × Contract Size
  • Short: (Entry Price − Mark Price) × Contract Size
• Realized P&L: Calculated upon closing a position.

👉 Pro Tip: Use OKX's advanced tools to automate risk management.

FAQs

1. What’s the minimum investment for futures trading?

• Depends on the contract specifications, but some platforms allow positions as low as $10.

2. Can I trade futures without leverage?

• Yes, but leverage amplifies both gains and losses.

3. How often are positions settled?

• Perpetual contracts settle continuously; delivery contracts settle on expiry dates.

4. What happens during liquidation?

• Positions are force-closed to prevent further losses.

5. Is futures trading suitable for beginners?

• High-risk; recommended only after mastering spot trading.

Final Notes

Futures trading offers high-reward opportunities but demands strict risk management. Always:

• Use stop-loss orders.
• Avoid over-leveraging.
• Trade on reputable platforms like OKX.

By following these steps, you’ll navigate crypto futures with greater confidence. Happy trading!