OKEX is a one-stop trading service software for global cryptocurrency enthusiasts, providing users with several mainstream virtual currency trading options. The exchange adheres to a customer-centric philosophy, offering high-quality services to its clients.
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OKEX has long been more than just a platform for spot trading; its service offerings are becoming increasingly diverse. With the current popularity of contract trading, OKEX also provides contract trading services for investors. Many investors looking to trade contracts are still unsure how to go long or short on OKEX. Below, I will provide a detailed tutorial on how to go long or short on OKEX.
How to go long or short on OKEX?
OKEX perpetual contracts are contract products settled in digital assets. Investors can go long by buying or go short by selling to profit from the price fluctuations of digital assets. Perpetual contracts do not have an expiration date and never expire.
- Fund Transfer
Before engaging in perpetual contract trading, you need to transfer funds from other accounts to the perpetual contract account to trade perpetual contracts.
Open the OKEX official website.
New user registration: Enter the official website.
Select the cryptocurrency you want to transfer, move digital assets from the funding account or other accounts to the perpetual contract account, enter the amount to transfer or click to transfer all, and click confirm.
- Choose Contract Type
Click on the trading option in the upper left corner of the homepage, select perpetual contracts, and enter the perpetual contract trading interface.
Perpetual contracts are further divided into coin-margined contracts and USDT-margined contracts. Choose the contract type and cryptocurrency you want to trade.
- Set Account Mode
Click the account mode button in the upper right corner of the page to choose between isolated margin or cross margin. Cross margin uses all assets in the account as margin for the position, while isolated margin only uses the portion of the position as margin.
You can also adjust the leverage, with a minimum of 0.01x and a maximum of 125x.
The trading unit can be changed to contracts or coins according to personal preference.
- Open and Close Positions
As shown in the image, this is the open and close position page where you can choose limit orders, advanced limit orders, take profit and stop loss orders, etc. You can also choose the market price or select other quotes for trading.
On the trading page, enter your desired price and quantity, and click buy to open a long or short position.
- Differences Between Perpetual Contracts and Futures Contracts
Expiration Date: Each futures contract has a fixed expiration date, and the settlement price is the arithmetic average of the BTC (LTC, and other cryptocurrencies) USD index over the last hour for all open positions of that week; perpetual contracts do not have an expiration date and never expire.
Funding Fees: Since there is no expiration date, perpetual contracts require a "funding fee mechanism" to anchor the contract price to the spot price.
Mark Price: Perpetual contracts use the mark price to calculate users' unrealized profits and losses, effectively reducing unnecessary frequent liquidations during market volatility.
How to make money with OKEX contract trading?
Investors can profit from contract trading by going long or short, gaining from the price fluctuations of the "underlying" asset. For example, when bullish on BTC and going long, an increase in BTC price results in profit, while a decrease leads to loss; conversely, when bearish on BTC and going short, an increase in BTC price results in loss, while a decrease results in profit. Therefore, there are opportunities to profit even when Bitcoin prices fall, earning returns through contract trading.
OKEX offers two types of contract products: futures contracts with expiration dates and perpetual contracts without expiration. Futures contracts have a delivery date, and when a contract expires without being closed, it will be settled at the arithmetic average price of the index over the last hour, regardless of the profit situation. Based on the delivery date, futures contracts are further divided into weekly, bi-weekly, quarterly, and bi-quarterly contracts. Perpetual contracts, on the other hand, have no delivery date and never expire. If there are more bullish users, the bullish side pays funding fees to the bearish side, and the bearish side receives funding fee income; if there are more bearish users, the bearish side pays funding fees to the bullish side, and the bullish side receives funding fee income.
This concludes the detailed content on how to go long or short on OKEX.