How to deal with OKX contracts after they expire?

OKX automatically settles expired delivery contracts using the mark price, crediting profits or debiting losses to your account; understanding contract types and employing risk management strategies like stop-loss orders before expiry is crucial.

Mar 19, 2025 at 03:18 am

Key Points:

• Understanding OKX contract expiry mechanics is crucial for managing risk.
• Expired contracts are automatically settled based on the final market price.
• No action is required from the user for most expired contracts.
• Understanding different contract types (perpetual vs. delivery) affects settlement.
• Proper position management before expiry minimizes potential losses.
• Funds are automatically credited to your OKX account post-settlement.
• Potential issues and troubleshooting steps are outlined.

How to Deal with OKX Contracts After They Expire?

Dealing with expired OKX contracts involves understanding the platform's settlement process and your own trading strategy. OKX offers various contract types, each with its own expiry mechanism. The most common are perpetual contracts and delivery contracts. Understanding these differences is crucial for navigating the expiry process.

Perpetual Contracts: Unlike delivery contracts, perpetual contracts don't have a fixed expiry date. They are designed to be held indefinitely. However, funding rates adjust the contract price to track the underlying asset's price, preventing large deviations. While there's no expiry, managing risk through proper position sizing and stop-loss orders remains essential.

Delivery Contracts: Delivery contracts have a specific expiry date. When the contract expires, it is automatically settled based on the mark price at expiry. The mark price is the fair market value determined by OKX based on various market data sources. You don't need to take any action; the settlement happens automatically.

Automatic Settlement: The core principle of OKX contract expiry is automatic settlement. Upon expiry, your position is closed, and your profit or loss is calculated based on the settlement price. This is usually the mark price for delivery contracts. The funds are then automatically credited to or debited from your OKX account.

What Happens to Your Funds?

After settlement, the outcome of your position – profit or loss – is reflected in your OKX account balance. If you had a profitable position, you'll see an increase in your account balance. Conversely, a losing position will result in a decrease. OKX usually updates your account balance within a short timeframe after the contract expiry.

Understanding Contract Specifications:

Before engaging in any contract trading, meticulously review the contract specifications. These specifications clearly outline the contract's expiry date (for delivery contracts), the settlement price calculation method, and other crucial details relevant to expiry. Ignoring these details can lead to unexpected losses.

Managing Your Positions Before Expiry:

Effective risk management is paramount. Before an expiry date, consider closing your positions manually if you're unsure about the market's movement or if you're uncomfortable with the risk. Alternatively, use stop-loss orders to limit potential losses. This proactive approach can help mitigate potential negative consequences.

Troubleshooting Potential Issues:

Occasionally, you might encounter issues during the settlement process. If you notice discrepancies in your account balance after expiry, immediately contact OKX support. Provide them with your trade details, including the contract ID and the expected settlement amount. They can investigate and resolve any anomalies.

Dealing with Different Contract Types:

• Quarterly Contracts: These contracts expire at the end of each quarter (March, June, September, December). The settlement process follows the same automatic mechanism as other delivery contracts.
• Bi-Quarterly Contracts: Similar to quarterly contracts, but these expire every two quarters.
• Monthly Contracts: These expire at the end of each month, offering shorter-term trading opportunities. The settlement process remains the same.

Managing Risk Before Expiry:

• Set Stop-Loss Orders: This is crucial to limit your potential losses.
• Close Positions Manually: If you're uncertain about market movement, close your position before expiry.
• Monitor the Market: Stay informed about market trends and potential volatility near the expiry date.

What if I forget to close my position before expiry?

OKX automatically settles your position at the mark price at expiry. You don't need to manually close it. However, ensure you understand the risk involved before entering into a contract.

How can I check the expiry date of my contracts?

The expiry date is clearly stated in the contract specifications when you open a position. You can also find this information on your OKX account's trading history and open positions.

What if there's a discrepancy in my account balance after expiry?

Contact OKX customer support immediately. Provide them with the relevant transaction details so they can investigate the issue.

Where can I find more information about OKX contract expiry?

Consult the OKX help center or contact their customer support team for detailed information and clarification. Review their terms and conditions as well.