How to trade perpetual swaps on the OKX cryptocurrency exchange

trade-perpetual-swap-on-OKX

Perpetual swaps (SWAP) – a type of cryptocurrency derivatives, very similar to futures contracts. The difference lies in the expiration time, as well as the funding fee. OKX exchange offers such tools for various popular coins, with USDT margin or cryptocurrencies. Let’s try to figure out with you how to trade perpetual swaps on OKX and what are the advantages of this type of trading.

How perpetual swaps work on the OKEX exchange

Just like futures, perpetual contracts allow traders to go long or short on the underlying asset. While futures contracts have a clearly defined expiration (execution) period, perpetual swaps do not, so the position could theoretically remain open indefinitely. On the OKX exchange, you can find a large selection of such swaps, including derivatives on BTC, ETH, LTC and other popular currencies.

The financing payment mechanism ensures that the value of the swap is as close as possible to the value of the base currency. While the price of futures automatically matches the price of the underlying asset, there may be discrepancies in the case of perpetual contracts.

If the spot price is lower than the derivative price, long position holders pay a funding fee to short position holders.

If the spot price exceeds the price of the derivative, short position holders pay a funding fee to long position holders.

Funding fees are calculated every eight hours. In addition, when trading perpetual swaps on OKX, a fee of 0.03% is charged for each settlement.

Perpetual contracts, unlike conventional spot trading, allow traders to not hold the underlying asset and still benefit from changes in its price. The process becomes even more rewarding (but also risky) with the use of leverage. In this case, the only condition for maintaining an open position is that the trader has sufficient margin to prevent liquidation.

OKX Perpetual Contracts Features

Users of the OKX exchange can trade two types of perpetual swaps: Coin margin and USDT margin. The difference lies in which assets are used as collateral.

Derivatives are available with several dozen cryptocurrencies:

— Bitcoin;
— Ethereum;
— Polkadot;
— Litecoin;
— Dogecoin;
— EOS;
— Ethereum Classic;
– 1inch etc.

The maximum leverage for trading is 125x. Usually, the leverage that is available to a particular trader decreases depending on the number of open positions.

How to trade perpetual swaps on OKEx

Each swap contract has a nominal value of $100 and is settled in cryptocurrency.

Trading instruction:

– Log in to OKX exchange and replenish your account with cryptocurrency by transferring it from your wallet or buying it from a card.log in-to-OKX

— Transfer assets in the required amount to the trading account (“Assets” -> “Translate”).Transfer-Funds-to-OKX

– Go to section “Margin Trading”which is in the menu “Bargaining”to access the entire range of derivatives.Margin-trading-OKX

– At the top left, select the “Perpetual swaps“. A little lower, the type of perpetual swap is selected – in USDT or Cryptocurrencytrade-on-OKX-select-perpetual-swap

– Below you will see a list of all available SWAP contracts. For example, let’s take the BTCUSDT futures. In this case, BTC is the settlement currency, and USD is the price unit of the futures contract.list-of-perpetual-swap-on-OKX

— In order to trade the selected perpetual swap contract, you need to select the type of leverage and the type of margin.
Start by choosing the type of margin − Isolated or Crossand then the desired leverage – up to 1:125.
The cross margin tends to change depending on the value of the underlying assets, while the fixed margin remains unchanged.OKX-choice-of-leverage-and-margin-type

– Choose the type of order – limit, market or more complex orders with multiple conditions. Enter the price and amount of the transaction. At the push of a button BBO you can quickly find the best offer.perpetual-swap-to-OKX-open-order

– To control risks, be sure to use the stop loss and / or take profit setting. With the help of conditional parameters, you can ensure a quick closing of a position at the right time to minimize possible losses.perpetual-swap-to-OKX-set-stop-and-take

– Click “Buy” to buy or “Sell” to sell cryptocurrencies.

The status of an open position can be viewed here in the OKX trading terminal under the chart, on the tab “Positions”. Already completed transactions are on the tab “History of Positions”. You can close the deal at any time. Profit or loss will be generated during the holding of the position in accordance with its direction (long or short) and the dynamics of the market price.Swaps-OKX-open-orders

Limit or market order

Limit order – an order, when creating which you can set a specific purchase or sale price. The trade will only be executed if there is an offer on OKX with the same or better price.

A more advanced version of a limit order is a stop order. It may take into account a number of additional conditions. For example, you can set the price at which a limit order will be created.

Market order – the fastest and easiest way to complete the transaction. For a transaction to be made, it is only necessary that there is a corresponding party in the market that accepts the same price.

Limit order – a more flexible tool, it allows you to tell the OKX exchange that you are only accepting a specific rate (or more profitable). When buying, this is the maximum price you are willing to pay, and when selling, it is the minimum you are willing to receive.

RESULTS

Perpetual Swaps on OKX is a trading method that combines high flexibility with good risk control. Adjustable margin modes (cross and isolated), a wide range of leverage – up to 125x – provide trading opportunities for both professionals and beginners. As a rule, those who are interested in hedging risks pay attention to this method; it is also a convenient tool for affiliates. In addition, perpetual contracts are relevant for traders who prefer long-term holding positions.


You can already start studying the Video course – robots in TSLab and learn how to make any robots yourself!

You can sign up for the next stream of the Online course “Creating robots in TSLab without programming”, information on which can be viewed here->

You can also learn how to program robots in our Video course “Robots for QUIK in Lua”

If you do not want to spend time on learning, then you can simply choose ready-made robots from those that are presented with us FOR TSLab, FOR QUIK, FOR MT5, FOR CRYPTOCURRENCY!

You can also see completely free developments for MT4, Quick, MT5. This section is also constantly updated.

Don’t put off your chance to make money on the stock exchange today!


Read also:

https://forexsites.info

Author of articles on trading and investments, which I have been doing for more than 8 years. Even from your phone, you can open a deal, buy shares, build up capital in assets that will bring dividends even when you stop working. You can't just not think about it.

Leave a Reply

Your email address will not be published. Required fields are marked *