How to trade perpetual contracts on okex

To begin trading perpetual contracts on OKEx, traders should first choose an appropriate contract based on the underlying asset, leverage level, and fees, then fund the account with collateral and place an order specifying the order type, price, quantity, and leverage.

Dec 06, 2024 at 02:10 pm

How to Trade Perpetual Contracts on OKEx: A Comprehensive Guide

Introduction

Perpetual contracts, also known as perpetual swaps, are a type of derivative that enables traders to speculate on the price of an underlying asset without having to take physical delivery of the asset. Perpetual contracts are traded on decentralized exchanges (DEXs) and centralized exchanges (CEXs) like OKEx. This guide will provide you with a step-by-step overview of how to trade perpetual contracts on OKEx.

Step 1: Understanding Perpetual Contracts

Before you start trading perpetual contracts on OKEx, it is crucial to have a clear understanding of how they work. Perpetual contracts are leveraged products, which means that they allow traders to gain exposure to a larger amount of capital than they have in their trading account. This can lead to significant profits, but also to substantial losses if the market moves against you.

Perpetual contracts are settled in cash, meaning that traders do not have to physically deliver the underlying asset at the time of settlement. Instead, they receive or pay the difference between the opening and closing price of the contract.

Step 2: Choosing the Right Perpetual Contract

OKEx offers a wide range of perpetual contracts, each with its unique set of underlying assets, leverage levels, and fees. The first step in trading perpetual contracts on OKEx is to choose the right contract for your needs.

Consider the following factors when selecting a perpetual contract:

• Underlying asset: What asset do you want to trade? OKEx offers perpetual contracts on various assets, including Bitcoin, Ethereum, and other cryptocurrencies.
• Leverage level: How much leverage do you want to use? Leverage can amplify both profits and losses, so it is essential to choose a level that you are comfortable with.
• Fees: OKEx charges a maker and taker fee for perpetual contract trades. The maker fee is paid when you place an order that adds liquidity to the market, while the taker fee is paid when you place an order that takes liquidity from the market.

Step 3: Funding Perpetual Contracts

Once you have chosen a perpetual contract, you need to fund it by depositing collateral into your OKEx trading account. The collateral can be in the form of OKB, USDT, or other supported cryptocurrencies. The amount of collateral you need will depend on the margin requirement of the contract.

Step 4: Placing an Order

To place an order for a perpetual contract on OKEx, follow these steps:

1. Log in to your OKEx account and navigate to the "Contracts" section.
2. Select the perpetual contract you want to trade and click on the "Trade" button.
3. Choose the order type (e.g., limit order, market order).
4. Enter the order details, such as the order price, quantity, and leverage.
5. Click on the "Buy" or "Sell" button to place the order.

Step 5: Managing Risk

Risk management is crucial in perpetual contract trading. To protect yourself from losses, follow these tips:

• Use stop-loss orders: Stop-loss orders allow you to limit your losses if the market moves against you.
• Set a defined risk tolerance: Determine how much you are willing to lose before entering a trade.
• Monitor your positions: Regularly check the status of your open positions and take action if necessary.