How to open a long or short position on OKX contracts?

On OKX, going long means betting on price increases, while shorting profits from declines—use leverage wisely and manage risk via isolated/cross margin modes.

Aug 10, 2025 at 09:56 am

Understanding Long and Short Positions on OKX

In the world of cryptocurrency derivatives trading, a long position means you are betting that the price of an asset will rise. When you open a long on OKX futures, you are essentially buying a contract with the expectation that you’ll be able to sell it later at a higher price. Conversely, a short position reflects the belief that the price will fall. Opening a short means you are selling a contract first, intending to buy it back later at a lower price to capture the difference as profit.

OKX offers perpetual and futures contracts for a wide range of cryptocurrencies such as BTC, ETH, SOL, and more. These contracts allow traders to use leverage, which amplifies both gains and losses. It is crucial to understand the difference between isolated and cross margin modes, as they affect your risk exposure. In isolated margin, only the margin allocated to the position is at risk. In cross margin, the entire available balance in your futures account can be used to cover losses.

Accessing the OKX Derivatives Trading Interface

To begin trading contracts on OKX, log in to your account and navigate to the "Trade" section at the top of the page. From the dropdown, select "Futures". This will take you to the derivatives trading dashboard. Here, you can choose between USDT-margined and coin-margined contracts. For most beginners, USDT-margined perpetual contracts are recommended due to their simplicity and stable pricing.

Once you are on the futures trading page, ensure your trading mode is set correctly. You can switch between classic and pro view depending on your experience level. The pro view offers more advanced charting tools and order types. On the left side of the screen, you’ll see the contract selection panel, where you can search for the cryptocurrency pair you want to trade, such as BTC-USDT-SWAP.

Setting Up Your Trading Parameters

Before placing a trade, configure the following settings carefully:

• Select leverage: Click on the leverage display (e.g., 10x) and adjust it using the slider or input field. You can set leverage from 1x up to 125x, depending on the contract. Higher leverage increases both potential profit and risk of liquidation.
• Choose margin mode: Click on the margin mode indicator and select either isolated or cross. Isolated is safer for managing specific risk per trade.
• Set order type: OKX supports limit, market, post-only, IOC (Immediate or Cancel), and FOK (Fill or Kill) orders. A market order executes immediately at the best available price, while a limit order allows you to set a specific entry price.

Ensure that your position mode is set to one-way mode (long and short not allowed simultaneously) or hedge mode (allows both long and short positions on the same asset). This can be changed in the settings icon near the price chart.

Opening a Long Position on OKX

To open a long position, follow these steps:

• Confirm you are on the correct contract, such as BTC-USDT-SWAP.
• Under the "Buy" button in the order panel, ensure the "Open" option is selected. This indicates you are initiating a new long position.
• Enter the amount of contracts or USDT value you wish to trade.
• Choose your order type. For immediate entry, select market order and click "Buy BTC".
• If using a limit order, input your desired price, confirm the leverage and margin mode, then click "Buy BTC".
• Once executed, your position will appear in the "Positions" tab at the bottom of the screen, showing entry price, liquidation price, and unrealized PNL.

Your long position is now active. You can monitor it in real time and set take-profit and stop-loss orders to manage risk.

Opening a Short Position on OKX

To open a short position, the process is similar but uses the "Sell" function:

• Make sure you are still on the correct futures contract.
• Under the "Sell" button, confirm that "Open" is selected to initiate a new short position.
• Input the quantity you wish to short, either in number of contracts or USDT value.
• Select market order for instant execution or limit order to specify your entry price.
• Review your leverage and margin mode settings before confirming.
• Click "Sell BTC" (or the relevant asset) to execute the order.

After execution, your short position will be visible in the "Positions" tab with all relevant metrics. Remember, in a short trade, you profit when the price decreases, so monitor the market closely.

Managing and Closing Positions

Once a position is open, you can manage it using several tools:

• Add or reduce margin: Click on the position and choose "Add Margin" or "Reduce Margin" to adjust your collateral.
• Set TP/SL: Click "TP/SL" to define take-profit and stop-loss levels. Enter the trigger price and order type (market or limit).
• Close position: To exit, click "Close" under the position. You can choose market to close immediately or set a limit order.
• Partial close: Enter a specific amount to close part of your position while keeping the rest active.

Always keep an eye on your liquidation price, which is displayed in red. If the mark price reaches this level, your position will be automatically closed, resulting in a loss.

Frequently Asked Questions

What is the minimum amount required to open a contract on OKX?

The minimum order size varies by contract. For BTC-USDT-SWAP, the minimum is typically 0.001 BTC. Check the contract specifications by clicking on the "i" icon next to the trading pair for exact values.

Can I change leverage after opening a position?

Yes. Click on your open position in the "Positions" tab, then select "Leverage" to adjust it. Note that changing leverage affects your margin and liquidation price.

What happens if my position gets liquidated?

If the market price reaches your liquidation price, OKX will automatically close your position to prevent further losses. You will lose the margin allocated to that trade, and a liquidation fee may apply.

How do funding fees work in perpetual contracts?

Funding fees are periodic payments exchanged between long and short holders every 8 hours. If you hold a long, you may pay fees when the funding rate is positive. If you hold a short, you may receive fees or pay them depending on the rate. These fees are based on the difference between perpetual contract price and the underlying index.