The Ultimate Guide to OKX Contract Trading: From Zero to Practical Combat, Lao Liek teaches you how to avoid pitfalls and make money
Want to play OKX contracts but are afraid of liquidating your position? This guide uses the most down-to-earth language to help you understand perpetual contracts, leverage, follow-up and other gameplay methods. It also comes with a permanent discount code for handling fees to help you save money, avoid pitfalls, and earn profits steadily.
The ultimate strategy for OKX contract trading: From zero to actual follow-up, Lao Liek teaches you how to avoid pitfalls and make money
Are you jealous of others who are doubling their contracts in a day, but are you worried that you will be cut off as soon as you enter the market? Don’t panic, today I will use vernacular to help you thoroughly understand OKX’s contract trading—from the most basic perpetual contracts to the advanced follow-up functions, letting you know how to get started, how to control risks, and even get some discounts on handling fees.
What exactly does OKX Exchange do?
To put it bluntly, OKX is a place where you can buy and sell cryptocurrencies. But it can not only play spot (buying coins with real gold and silver), but can also play contracts - this thing is like betting on big or small, but it is much more exciting because you can add leverage to amplify your gains. Of course, the losses are also more severe. Therefore, the contract is not about playing house. You have to find out the ropes first, otherwise you will be taught how to be a good person every minute.
What exactly is a contract?
To put it simply, a contract is a trading method that allows you to bet on the rise or fall of a currency without actually buying it. Do you think a certain currency is going to rise? Open a long order. Think it’s about to fall? Open a short order.
The most attractive thing about contracts is leverage. For example, if you take a principal of US$100 and open a leverage of 10 times, it is equivalent to playing with US$1,000. If the currency price increases by 10%, you will not earn 10 yuan, but 100 yuan. But on the other hand, if it falls by 10%, your position will be liquidated and your principal will return to zero. That’s why Old Leek often says: A contract is a double-edged sword. If you use it well, it will go to heaven, but if you use it badly, it will go to earth.
OKX’s contract types: perpetual, delivery, leverage, options
OKX provides four mainstream contracts, each with different gameplay:
1. Perpetual contract (most commonly used)
Perpetual contracts have no expiration date, and you can hold them until you close your position or liquidate it. Its price will be linked to the spot price through the "funding rate".
What is the funding rate? If the rate is positive, it means there are too many people opening long positions, and the longs have to pay the shorts; if it is negative, it means there are many people opening shorts, and the shorts have to pay the longs. This mechanism is to prevent the contract price from straying too far, which is a kind of balancing technique in the market.
2. Delivery Contract
The delivery contract has a fixed expiration date (such as the end of each quarter), and the position is automatically closed upon expiration. Suitable for those who want to do short-term and do not want to watch the market for a long time.
3. Leverage trading
Leverage is a bit like a contract, but the essence is "borrowing money to buy coins." You can borrow some funds from OKX to enlarge your spot position, with a maximum leverage of 10 times.
4. Options
Options are a way of "buying rights". Spend a little money to buy the right to "buy and sell coins at a fixed price in the future". The risk is relatively controllable and is suitable for hedging or arbitrage.
Is OKX safe? Will he run away?
This problem is very real. As the world's top licensed exchange, OKX's security and compliance are among the best in the industry. Of course, any centralized exchange has theoretical risks, but by choosing such a formal exchange, you can at least avoid the pitfalls of pheasant platforms.
My suggestions are just a few:
- Be sure to turn on two-factor authentication (2FA), don’t be lazy.
- Make the password more complex, don’t use birthday 123456.
- Don't put all your eggs in one basket, spread your positions.
- Pay more attention to industry trends and don’t just play around with your eyes closed.
In the currency circle, safety awareness always comes first. Use a big firm, don't take advantage of small advantages and go to platforms that you have never heard of, otherwise there will be no place to cry if you are cut off.
Teach you step by step how to open a contract on OKX
Step 1: Register an OKX account
Go directly to the official website to register. Here is a key point: Be sure to fill in the invitation code when registering, which can permanently reduce the handling fee. In the long run, the money saved will be enough for you to eat several hot pot meals.
**👉 Register with OKX and get permanent fee discount: **
- Exclusive invitation code:
LULALA - Official registration link: https://www.lywebuuz.com/join/LULALA
- Rebate discount: permanently enjoy 20% handling fee reduction
Step 2: Deposit
You can deposit funds with cryptocurrency (such as USDT) or legal currency (RMB, USD), whichever is more convenient.
Step 3: Fund transfer
Newbies often forget this step. The money you deposit is in the "capital account" by default, but the trading contract must be transferred to the "trading account" first. Operation path: Wallet → Fund Transfer → Transfer from capital account to trading account.
Step 4: Select contract type
Open the APP or webpage, click "Trade" → select "Perpetual Contract" → select a trading pair (such as BTC/USDT).
Step 5: Place order
After entering the trading interface, you will see a bunch of parameters:
- Price: The market price of the current contract (it may be slightly different from the spot price).
- Funding Rate: Positive numbers pay for long positions, negative numbers pay for short positions.
- Leverage multiple: You can choose from 1x to 100x. The higher the multiple, the easier it is to liquidate your position. Beginners, don’t waste your money.
- Order Type: *Limit order: The transaction is executed at the specified price (the transaction may not be executed immediately).
- Market order: Immediately execute the transaction at the current market price.
After selecting the parameters, click "Buy/Long" or "Sell/Short" and the order will be placed.
Step 6: Watch the market
After placing an order, remember to keep an eye on the market to see if your position is about to be liquidated. Be sure to set a stop profit and stop loss, this is a life-saving talisman.
Step 7: Close the position
When you want to exit, click "Close Position" to settle the profit and loss, and be safe.
OKX follow-up function: Let the experts take you flying
If you don’t know how to read the market yourself, or don’t have time to watch the market, you can try the “Follow Order” function of OKX. To put it simply, you copy the operations of those traders who make money. When they open a position, you open it, and when they close it, you close it.
**How to operate? **
- Find the entrance to follow orders: Open the APP → click "Discover" → select "Follow Orders".
- Select Traders: Filter by ranking, profit rate, and winning rate. It is recommended to choose stocks with stable historical data and small retracement, and don’t just look at short-term huge profits.
- Set the following parameters: Set the leverage multiple, stop-profit and stop-loss, and follow-up amount by yourself. Don’t copy them completely. Add your own judgment.
Note: Following an order does not mean lying down and winning. Some traders will "save orders" (carry losses) for the sake of winning rate. If you don't set a stop loss, your principal may be lost in a sharp drop. **The core of following orders is to follow "strategy" and "risk control", not to follow "gods", and keep a clear mind.
Risks of contract trading: Don’t just dream about making money
Leverage risk
OKX supports up to 100 times leverage, which sounds cool, but the higher the multiple, the easier it is to liquidate your position. If the currency price fluctuates by 10%, you may return to zero. Beginners are advised to start practicing at 5x or 10x, don’t just start playing.
Market risk
The cryptocurrency market is extremely volatile, with prices rising and falling by 30% in a day common. If you don't do a good job in risk control, your money may have evaporated when you wake up.
System Risk
Although OKX is relatively stable, the exchange may malfunction, freeze, or even be attacked. At this time, you may not be able to close your position in time, so you must be mentally prepared.
FAQ
**Q1: How much money do I need to start trading contracts? ** In theory, you can play with a few dozen dollars, but it is recommended to prepare at least a few hundred dollars so that the risk is easy to control and there is room for trial and error. Don't gamble your meal money.
**Q2: How can I protect myself from liquidation? ** **Set stop loss orders, control positions, and don’t use too high leverage. ** Also, never All In a list. Remember, surviving is more important than making quick money. Keeping the green hills is not afraid of running out of firewood.
**Q3: How much money can you make from contract trading? ** It all depends on your strategy, discipline and luck. Some people double their positions in one day, and some people liquidate their positions in one day. Don't expect to get rich overnight. The right way is to work steadily and treat trading as a long-term skill.
Summary
OKX has many contract trading methods, including perpetual contracts, delivery contracts, leverage, and options. But remember, a contract is not an ATM machine, and risks and returns always coexist.
If you are a novice, it is recommended to start with low leverage, use small funds to explore slowly, and focus on learning how to set stop losses and manage positions. If you don’t have time to learn, you can try following orders, but don’t follow them blindly. Be sure to choose traders who are reliable and have strict risk control.
**The most important thing is: never trade with money you cannot afford to lose. **
**Want to start your contract journey on OKX? The first step is to choose the right entrance and reduce the handling fee cost. **
**Register OKX now through CoinRebate’s exclusive link and get a permanent fee discount: **
- Exclusive invitation code:
LULALA - Official secure registration link: https://www.lywebuuz.com/join/LULALA
- Preferential benefits: Enjoy a permanent 20% discount on transaction fees
The handling fee saved is the extra profit you make. The road to trading starts with cost savings. I wish you good luck and don’t be cut too hard!