Navigating the world of cryptocurrency derivatives can be challenging, especially for newcomers. OKX, one of the leading digital asset exchanges, offers a comprehensive suite of tools and features through its contract trading platform. This guide dives into essential aspects of OKX contract trading—covering order types, margin modes, risk controls, and more—to help traders make informed decisions and optimize their strategies.
Understanding OKX Contract Order Types
OKX supports three primary order types: limit orders, market orders, and conditional orders. Each serves a distinct purpose depending on your trading goals and market conditions.
Limit Orders
A limit order allows you to set a specific price at which you want to open or close a position. It ensures price control but does not guarantee immediate execution. This type is ideal for traders who prioritize precision over speed, especially in volatile markets where slippage can impact results.
Market Orders
Market orders execute instantly at the best available current price. They are perfect when speed is crucial—such as reacting to sudden news or breaking trends—but come with the trade-off of potential slippage during high volatility.
Conditional Orders
Also known as trigger orders, these allow you to automate trades based on predefined conditions (e.g., price reaching a certain level). They are particularly useful for strategy execution when you're not actively monitoring the market.
👉 Discover how to use advanced order types effectively on OKX.
Full vs. Isolated Margin: Choosing the Right Mode
OKX offers two margin modes that significantly affect risk exposure and capital efficiency: full (cross) margin and isolated margin.
Full Margin Mode
In full margin mode, all available equity in your account acts as collateral for open positions. This increases capital utilization and reduces the likelihood of liquidation under normal conditions. However, it also means that losses from one position can impact your entire portfolio.
Isolated Margin Mode
Isolated margin restricts the risk to a defined amount of capital allocated to each position. If the position liquidates, only the assigned margin is lost. This mode offers clearer risk boundaries and is often preferred by beginners or those executing high-leverage trades.
You can switch between these modes only when you have no open positions or pending orders.
How Is Liquidation Triggered on OKX?
Liquidation occurs when a trader’s margin balance falls below the required maintenance level. On OKX, this threshold is calculated using the maintenance margin rate. Once breached, the system automatically closes the position to prevent further losses.
You can monitor your real-time liquidation price directly in the OKX app or web interface under the "Positions" tab. The displayed price updates dynamically based on market movements and funding adjustments.
To reduce liquidation risk:
- Use lower leverage
- Set stop-loss orders
- Maintain sufficient margin balance
- Monitor funding rates for perpetual contracts
👉 Learn how to avoid liquidation with smart risk settings on OKX.
Effective Risk Control: Stop-Loss and Take-Profit Strategies
One of the most powerful risk management tools on OKX is the ability to set stop-loss and take-profit levels—either when placing an order or after opening a position.
These settings trigger automatic market orders once the specified price is reached:
- Stop-loss limits downside risk during adverse moves.
- Take-profit locks in gains when price targets are met.
The system executes these as market orders, ensuring prompt closure even in fast-moving markets.
Best practices:
- Always set stop-losses before entering a trade.
- Align take-profit levels with technical resistance/support zones.
- Reassess levels during significant market shifts.
This dual-setting feature enhances discipline and removes emotional decision-making from trading.
Coin-Margined vs. USDT-Margined Contracts
OKX offers two types of perpetual contracts based on settlement currency:
Coin-Margined Contracts
- Denominated and settled in the underlying cryptocurrency (e.g., BTCUSD uses BTC).
- Profits and losses are reflected in the base coin.
- Ideal for long-term holders looking to hedge or speculate without converting to stablecoins.
USDT-Margined Contracts
- Priced and settled in USDT.
- Easier to track P&L in fiat-equivalent terms.
- More accessible for traders focused on stable value tracking.
Choosing between them depends on your asset allocation strategy, tax considerations, and trading frequency.
What Are OKX Perpetual Contracts?
Perpetual contracts are derivative instruments that mimic spot prices without an expiry date. Unlike traditional futures, they don’t require rollover and can be held indefinitely.
Key features:
- Support for long and short positions
- Up to 100x leverage (varies by asset)
- Funded via periodic funding rates
They are widely used by active traders seeking exposure to crypto price movements without owning the actual asset.
Funding Rates and Their Impact on Holding Costs
On OKX, funding rates are settled every 8 hours—at 00:00, 08:00, and 16:00 UTC+8. Only users with open positions at these times pay or receive funding.
The rate depends on the difference between perpetual contract prices and index prices:
- Positive rate: Longs pay shorts
- Negative rate: Shorts pay longs
Frequent or long-term traders should account for this cost in their strategy. Monitoring funding trends can also provide insight into market sentiment.
Can You Set Both Take-Profit and Stop-Loss Simultaneously?
Yes. OKX allows traders to set both take-profit and stop-loss orders at the same time, either during order placement or after entering a position.
This dual-layer protection helps secure profits while capping potential losses—all without manual intervention.
Steps to set:
- Open the contract trading interface
- Place a new order or select an existing position
- Enable “Take Profit / Stop Loss” option
- Input desired prices
- Confirm
This functionality significantly improves trade safety, especially in unpredictable markets.
Common Issues with Asset Transfers on OKX
Some users report failed transfers between accounts. Common causes include:
- Incomplete KYC verification
- Insufficient balance or frozen funds
- Attempting to transfer unsupported tokens
- Incorrect transfer network selection
- System maintenance or temporary outages
Ensure your identity is verified and double-check asset compatibility before initiating transfers.
Frequently Asked Questions (FAQ)
Q: What is the main advantage of using isolated margin?
A: Isolated margin limits risk to a specific amount per trade, preventing one losing position from affecting your entire account balance.
Q: How often are funding rates charged on OKX perpetuals?
A: Every 8 hours—at 00:00, 08:00, and 16:00 Beijing time. Only active positions at those moments are charged.
Q: Can I change margin mode while holding a position?
A: No. You must close all positions and cancel pending orders before switching between full and isolated margin modes.
Q: Are stop-loss orders guaranteed on OKX?
A: Stop-loss orders are executed as market orders when triggered, so execution is nearly instant—but final price may vary slightly due to slippage in extreme volatility.
Q: Does OKX support trailing stop orders?
A: Yes, OKX supports trailing stop-loss orders, allowing dynamic adjustment of exit points as price moves favorably.
Q: Is KYC required for contract trading?
A: Yes, completing KYC is mandatory to access derivatives trading services on OKX for regulatory compliance.
👉 Start applying these strategies with precision tools on OKX today.