Cryptocurrency trading has evolved far beyond simple spot buying and selling. For traders seeking advanced strategies, contract trading offers powerful tools to profit from both rising and falling markets. On platforms like OKX, one of the world’s leading digital asset exchanges, users can access a wide range of derivative products, including perpetual and delivery contracts, with flexible leverage and multiple margin options.
This guide walks you through everything you need to know about contract trading on OKX, from core concepts to step-by-step execution — all while optimizing for clarity, safety, and real-world applicability.
What Is Contract Trading?
Contract trading allows investors to speculate on the price movements of cryptocurrencies without owning the underlying asset. Instead of buying Bitcoin (BTC) directly, for example, you can enter into a contract that profits when BTC rises (long position) or falls (short position).
There are two primary types of contracts available on OKX:
1. Delivery Contracts
These are futures-style contracts with a fixed expiration date. Depending on the term, they’re categorized as:
- Weekly (this week, next week)
- Quarterly (this quarter, next quarter)
When a delivery contract expires, open positions are settled automatically based on the average index price over the last hour before expiry.
2. Perpetual Contracts
Unlike delivery contracts, perpetuals have no expiration date, meaning you can hold them indefinitely. To keep the contract price aligned with the spot market, a mechanism called funding rate is used:
- If more traders are long, longs pay shorts a funding fee.
- If more traders are short, shorts pay longs.
This incentivizes balance in the market and prevents extreme deviations.
👉 Discover how perpetual contracts work and start trading with confidence today.
Key Features of OKX Contract Markets
OKX supports both USDT-margined and coin-margined contracts across various cryptocurrencies like BTC, ETH, XRP, and more. Here's how they differ:
USDT-Margined Contracts
- Profits and losses are denominated in USDT (a stablecoin).
- Easier for beginners due to stable valuation.
- Ideal for hedging against volatility.
Coin-Margined Contracts
- Margin and P&L are in the base cryptocurrency (e.g., BTCUSD uses BTC as margin).
- More suitable for experienced traders managing crypto-native portfolios.
- Exposes traders to additional price risk of the margin coin itself.
Both types support leverage ranging from 1x to 125x, depending on the asset and market conditions.
How to Start Contract Trading on OKX: Step-by-Step
Before diving into live trading, ensure your account is verified and funded. Then follow these steps:
Step 1: Switch to Margin Account Mode
To trade contracts, you must enable either:
- Single-currency margin mode: Isolated risk per asset.
- Multi-currency margin mode: Cross-utilization of assets for higher efficiency.
Navigate to your account settings and activate your preferred mode.
Step 2: Transfer Funds to Your Trading Account
Move funds from your funding account to your derivatives trading account:
- Go to "Assets" > "Transfer"
- Select the cryptocurrency (e.g., USDT or BTC)
- Choose “From Funding Account” to “To Derivatives Account”
- Confirm transfer
Wait for confirmation before proceeding.
Step 3: Choose Your Contract Type
For Delivery Contracts:
- Open the Trading page.
- Click the dropdown next to any trading pair.
- Search for your desired coin (e.g., BTC).
Under “Margin Trading,” select:
- Coin-Margined Delivery: e.g., BTC-USD-This Week
- USDT-Margined Delivery: e.g., BTC-USDT-Next Week
For Perpetual Contracts:
- Follow the same steps above.
- Select Perpetual under contract type.
Pick either:
- BTC/USDT-SWAP (USDT-margined)
- BTC/USD-SWAP (coin-margined)
👉 Try out different contract types and find your ideal trading strategy now.
Executing a Trade: Long or Short?
Once you've selected your contract:
Set your order type:
- Limit Order: Execute at a specific price.
- Market Order: Immediate execution at current price.
- Stop-Limit / Take-Profit: Advanced conditional orders.
Enter:
- Price
- Quantity (in contracts or value)
- Leverage level (adjustable via slider)
Click:
- Buy / Open Long if you expect prices to rise.
- Sell / Open Short if you expect prices to fall.
After execution, your active position will appear in the Positions tab.
Managing Risk: Stop-Loss & Take-Profit
Smart traders protect their capital using risk controls:
In the Positions Interface:
Tap "Set TP/SL" to define:
- Take-Profit (TP): Automatically closes the trade when profit target is reached.
- Stop-Loss (SL): Closes the trade if losses exceed acceptable levels.
You can also manually close positions at any time:
- Use "Close Position" with a limit or market order.
- Or click "Market Close All" for instant exit.
Additionally, monitor your estimated liquidation price — if the market hits this level, your position may be forcibly closed.
Core Keywords for Smart Trading
To maximize visibility and understanding, here are essential terms every OKX trader should know:
- Contract trading
- Perpetual contract
- Delivery contract
- Leverage trading
- USDT-margined
- Coin-margined
- Funding rate
- Liquidation price
Understanding these concepts helps not only in executing trades but also in interpreting market dynamics and improving long-term performance.
Frequently Asked Questions (FAQ)
Q1: Is contract trading safe for beginners?
While contract trading offers high reward potential, it also carries significant risk due to leverage. Beginners should start with small positions, use low leverage (e.g., 3x–5x), and practice in demo mode before going live.
Q2: What happens when a delivery contract expires?
At expiration, all open positions are settled automatically using the average index price over the final hour. Traders don’t need to take action unless they want to roll over their position manually.
Q3: How often is funding paid in perpetual contracts?
Funding is exchanged every 8 hours (at 04:00, 12:00, and 20:00 UTC). You’ll either pay or receive funding based on market sentiment.
Q4: Can I lose more than my initial investment?
On OKX, losses are generally limited to your margin balance thanks to built-in risk controls. However, under extreme volatility, there’s a small chance of negative balance (though rare).
Q5: What is the difference between isolated and cross margin?
- Isolated margin: Risk is confined to a set amount allocated per trade.
- Cross margin: Uses your entire available balance as collateral, increasing efficiency but also exposure.
Q6: Does OKX offer a demo account for contract trading?
Yes! OKX provides a paper trading feature where users can practice contract trading with virtual funds. This is ideal for testing strategies without financial risk.
Final Tips for Success
- Always use stop-loss orders to manage downside risk.
- Monitor funding rates before opening large perpetual positions.
- Stay updated on macroeconomic news affecting crypto markets.
- Never trade with money you can’t afford to lose.
👉 Ready to put theory into practice? Begin your journey with OKX’s powerful trading tools now.
With its robust infrastructure, diverse product offerings, and global compliance framework, OKX remains a top choice for both novice and professional traders navigating the dynamic world of cryptocurrency derivatives. Whether you're hedging portfolio risk or speculating on short-term moves, mastering contract trading opens new doors in your financial journey.