How to open contract on OKX

To begin trading on OKX's contracts platform, users must first create an account, fund it, navigate to the contracts page, understand the contract parameters, select an order type, enter their order parameters, and finally place their order.

Nov 14, 2024 at 03:36 pm

How to Open a Contract on OKX

As the second-largest cryptocurrency exchange by trading volume, OKX offers a wide range of contract trading options for traders of all experience levels. This guide will provide a step-by-step walkthrough on how to open a contract on OKX, covering everything from signing up for an account to placing your first trade.

1. Create an OKX Account

• Visit the OKX website and click on "Sign Up" in the top right corner.
• Enter your email address or mobile phone number and create a password.
• Verify your account by following the instructions sent to your email or phone.

2. Fund Your Account

• Log in to your OKX account and click on "Assets" > "Deposit."
• Select the cryptocurrency you want to deposit and generate a deposit address.
• Transfer funds from your external wallet or another exchange to the generated address.

3. Navigate to the Contracts Page

• Once your account is funded, click on "Trade" > "Contracts" in the top menu.
• Choose the contract you want to trade from the list of available options.

4. Understand the Contract Parameters

• Before opening a contract, it's essential to understand the following parameters:

  • Contract Size: This represents the number of underlying assets represented by each contract unit.
  • Tick Value: This is the smallest price change that a contract can experience.
  • Trading Hour: This indicates the time during which the contract can be traded.
  • Settlement Date: This is the date on which the contract expires and is settled.
  • Open Interest: This represents the total number of open contracts for the particular underlying asset.

5. Select an Order Type

• OKX offers various order types for contract trading, including:

  • Market Order: This order executes immediately at the best available market price.
  • Limit Order: This order is placed at a specified price and only executes when the market price reaches that level.
  • Stop Order: This order is placed below (for buy orders) or above (for sell orders) the current market price and only activates when the market price reaches a specified trigger price.

6. Enter Your Order Parameters

• Choose the order type and enter the following details:

  • Quantity: This represents the number of contract units you want to trade.
  • Price: For limit orders, enter the price at which you want to execute the order.
  • Trigger Price: For stop orders, enter the price that will activate the order.

7. Place Your Order

• Once all the parameters are set, click on the "Buy/Long" or "Sell/Short" button to open the contract position.

Additional Tips for Contract Trading on OKX

• Use a Demo Account: Before trading on a live account, consider using OKX's demo account to gain some experience.
• Manage Your Risk: Contract trading involves leverage, which can amplify both profits and losses. Use stop-loss orders to limit your potential losses.
• Study Contract Trading: Learn about different trading strategies, technical indicators, and risk management techniques to improve your chances of success.
• Stay Informed: Keep up with the latest market news and developments that may affect the value of the underlying asset.