Crypto Futures Trading by OKX

Crypto futures are a type of derivative trading product that allows investors to gain exposure to crypto assets without having to own the tokens. It is a legal contract between two parties to buy or sell an underlying asset at a predetermined future price and date, allowing investors to hedge against volatile market conditions.

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How does crypto futures trading work?

The main components of a crypto futures contract include:

Settlement Date (Expiration Date) This refers to the date the futures contract must be settled or fulfilled. In other words, the two parties who entered into this agreement have to buy or sell the crypto asset at the pre-agreed price. OKX offers weekly, bi-weekly, quarterly and bi-quarterly futures contracts, and they are settled on Fridays, 8:00 am UTC.

Settlement Types Crypto-margined futures are settled in the underlying cryptocurrency, while USDT-margined futures are settled in the USDT stablecoin. In a bull market, investors may be more inclined to hold on to their cryptocurrencies. Conversely, settlements in USDT make it easier to calculate returns and reduce the risk of large price swings.

Leverage Multiplier Futures contracts typically offer higher leverage. At OKX, the maximum leverage available is 125X. It is, however, recommended to start very low when you first begin trading with leverage. The higher the leverage, the higher the rewards and risks.

Maintenance Margin A maintenance margin is the minimum portfolio value investors need to maintain to keep a leveraged trade open and avoid a margin call. A margin call occurs when investors are asked to deposit additional funds to keep the trade positions open. If ignored, any open positions might be closed. This is known as liquidation.

Isolated vs Cross Margin (Margin Mode) Under the isolated margin mode, only funds designated as the margin will be used to collateralize a position and prevent liquidation. Under the cross margin mode (also known as spread margin), all available funds will be used as collateral.

Trading Fees The settlement fee for futures trading of all tokens on OKX is 0.03%. Maker and taker fees vary for different tiers of users. View the fee table.

Trade crypto futures on OKX

Crypto futures trading is a fast-growing market that attracts trillions of dollars in volume and liquidity worldwide. OKX offers futures contracts for top cryptocurrencies like Bitcoin (BTC)Ethereum (ETH)Polkadot (DOT)Solana (SOL) and Chainlink (LINK). Read the step-by-step guide to learn how to trade crypto futures on OKX.

  • High Volume and Liquidity OKX processes over $12 billion in volume daily in the derivatives market alone. With high liquidity, investors can make more efficient trades with fairer prices.

  • Wide Variety of Contracts For crypto futures trading alone, OKX offers futures contracts for 15 cryptocurrencies.

  • Access to Market Data Historic market data and futures trading charts are frequently updated for investors to identify the best trading opportunities in the market.

  • Safe and Secure OKX places strong emphasis on security, employing industry-leading security protocols and anti-phishing measures to safeguard your crypto assets.

Why trade crypto futures?

The unprecedented growth of crypto space in recent years has resulted in the introduction of new and more advanced trading products, such as futures and options. As opposed to regular spot trading, investing in crypto futures presents more opportunities to grow your portfolio exponentially within a single trade.

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Access to Crypto Markets

Investors can trade crypto futures without ever having to own the underlying currency of the futures contract.

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Minimize Investment Risks by Hedging

Hedging reduces the risk of unfavorable price movements of an asset.

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Amplify Profits with Leverage Trading

Investors can use leverage to amplify their potential profits without upfront capital.

Crypto futures trading: long position vs short position

Before we dive into trading crypto futures, it is helpful to understand the difference between longing and shorting. When investors long a crypto asset, they buy the token with the expectation that its price would rise. On the contrary, when investors short an asset, they sell the token in the hopes of repurchasing it at a lower price in the future.

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Risks of crypto futures trading

In crypto futures trading, the risks involved are predominantly margin calls and liquidation. As mentioned, when trading futures with leverage, a minimum margin is required to keep trade positions open. This initial margin is kept in a margin account. When the value of the margin account runs low, the investor gets notified with a margin call requesting for additional funds to be deposited into their margin accounts. If ignored and the margin account is depleted, investors will be liquidated. This means that open trade positions will be closed and the initial margin will be taken. In a highly volatile crypto market, investors run a higher risk being liquidated and losing their initial capital.

Risk of futures trading

Can you trade bitcoin futures?

Yes, OKX offers bitcoin futures trading contracts alongside 14 other futures contracts for popular cryptocurrencies. This includes Ethereum (ETH), Polkadot (DOT), Solana (SOL), Chainlink (LINK) and Ripple (XRP). View futures contracts information.

What are crypto derivatives?

Crypto derivatives, like traditional derivatives, are contracts that derive their value from an underlying asset. In the case of bitcoin derivatives, for example, the value of the underlying asset would be the price of bitcoin.

What is the difference between futures and options?

Futures contracts require contract holders to buy or sell the asset on the pre-determined future date, also known as a settlement date. Options, on the other hand, give contract holders the option to not fulfill the contract if market conditions are not in their favor.

What is the difference between futures and margin trading?

There are two main differences between futures and margin trading. First, futures trading occurs in the derivatives market while margin trading occurs in the spot market. Second, futures trading uses an initial margin as collateral to open a trade position whereas margin trading requires investors to pay interest on their loans for leveraged trades.

What is the difference between futures and perpetual swaps?

The key differences between futures and perpetual contracts are the settlement dates and funding fees. Futures contracts have a settlement date and no funding fees, while perpetual contracts do not have a settlement date but come with funding fees.

Learn crypto futures trading with OKX Academy

How to trade cryptocurrency futures on OKX. A step-by-step tutorial for trading cryptocurrency futures on OKX.

An introduction to futures trading Learn about:

- What are futures contracts?

- How to trade futures contracts?

- OKX’s crypto futures trading bot

Learn Futures Trading