How to set up hedging at Dubai OKX

To hedge against potential losses, traders can utilize OKX's platform by setting up a "Bid Hedge" order, where they place a buy order below the current spot price to mitigate downside risk.

Oct 17, 2024 at 08:24 am

How to Set Up Hedging on Dubai OKX

Step 1: Open an Account

• Visit the OKX website and click "Sign Up."
• Enter your email address, create a password, and provide other required information.
• Verify your identity by uploading your passport or government-issued ID.

Step 2: Fund Your Account

• Log in to your OKX account and click "Wallet."
• Choose your preferred deposit method (e.g., credit card, bank transfer, cryptocurrency).
• Follow the instructions to fund your account.

Step 3: Find the Market You Want to Hedge

• Go to the "Markets" tab and select the trading pair you want to hedge.
• For example, if you want to hedge against a potential loss in Bitcoin, select BTC/USDT.

Step 4: Create an Order

• Click the "Order" button within the trading interface.
• Select "Hedge" from the order type dropdown menu.
• Enter the amount of the hedge order you want to place.
• Choose the leverage (if any).

Step 5: Select the Hedging Strategy

• OKX offers two hedging strategies: "Bid Hedge" and "Ask Hedge."
• Bid Hedge: Used to protect against downside risk. It involves placing a buy order at a price below the current spot price.
• Ask Hedge: Used to protect against upside risk. It involves placing a sell order at a price above the current spot price.

Step 6: Enter Other Order Parameters

• Set the order expiration time.
• Choose the post-only option (if desired).
• Add a trailing stop-loss to protect your profits.

Step 7: Review and Execute

• Review all order details carefully.
• Click the "Create Hedge" button to execute your hedging order.

Additional Tips

• Hedge a small portion of your portfolio initially to manage risk.
• Consider different hedging strategies depending on market conditions.
• Track your hedged positions regularly and make adjustments as needed.
• Understand the risks and potential rewards of hedging before executing any orders.