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Academy Beginners Tutorial Article

How to trade cryptocurrency futures on OKEx

2020.08.07 OKEx

Futures are derivatives that allow two parties to enter into contracts for the sale and purchase of an underlying asset in the future at a predetermined date and price. Both buyers and sellers can lock in the price of the underlying to hedge against any unfavorable price changes. In the case of cryptocurrency futures, the underlying asset is, in most cases, Bitcoin (BTC) or another top cryptocurrency.

OKEx supports the trading of futures contracts for nine top digital assets, such as Bitcoin and Ether (ETH). Each contract on OKEx represents $100 worth of BTC or $10 worth of other digital assets (i.e., ETH, LTC, etc.).

While futures are relatively advanced products compared to spot trading and include various risks, experienced users can follow this step-by-step guide to start trading futures on OKEx.

Step 1: Go to the futures section

Go to the OKEx homepage and navigate to Trade in the top menu to see the available markets. Then, click on Basic under the "Futures" label to open the futures section. The basic version offers a good starting point for beginners. If you are an experienced trader, you can choose Advanced for a more comprehensive dashboard. 

For the purposes of this guide on how to trade cryptocurrency futures, we will use the basic dashboard as a reference for trading crypto futures on OKEx.

How to trade cryptocurrency futures

Step 2: Activate futures trading

Beginners to futures trading need to understand and acknowledge the risks involved, and only after checking the box will it be possible to Activate Trading of derivatives on OKEx, as shown in the screen below.

How to trade futures activation

Step 3: Transfer funds to your futures account

Your futures account needs to be funded before you can start trading. If you do not have any balance in your futures account, click on Transfer (either on the "Futures Trading" page or on the "Assets" drop-down list in the top menu) to move funds between accounts.

If you do not have any crypto assets on your OKEx account, you can either buy crypto or learn how to deposit crypto on OKEx with our beginner’s guide on how to start trading crypto.

In order to trade the futures contract labeled "BTCUSD0807," which is a Coin Margined Contract, you need to transfer BTC from your "Funding Account" to your "Futures Account." In this case, the futures account is the "BTCUSD Account." Enter the amount you wish to transfer and then click Confirm.

Step 4: Choose a futures contract to trade

Once logged in and viewing the futures section, you need to first select the margin type located at the top of the page (i.e., Coin Margined Futures, which are settled in the underlying digital currency, or USDT Margined Futures, which are settled in USDT). Next, choose the desired time frame for the contract's expiration. The available options are Weekly, Bi-weekly, Quarterly and Bi-quarterly.

After this you can select one of the available futures contracts from the left bar. In this tutorial, we will select the weekly futures contract labeled "BTCUSD0807" as an example. 

Based on its name, BTCUSD0807, we can see that BTC is the settlement currency and USD is the price unit of the futures contract. The last four digits, 0807, indicate the delivery date — which is Aug. 7, 2020, in this case. Futures contracts on OKEx are settled every Friday at 8:00 am UTC.

Step 5: Choose the type of leverage for futures trading

After funding the futures account, you can select the margin mode (either "Fixed" or "Cross") and choose the desired leverage multiplier. If you select the "Fixed" margin mode, the margin stays the same regardless of price fluctuations, whereas it varies with price if you select "Cross" margin mode.

type of leverage for futures trading

Step 6: Enter order details and execute

After selecting margin type and leverage multiplier, you can input your desired "Order Type," "Price" and "Amount" for the trade. If you would like to execute your order as soon as possible, you can click on BBO (i.e., the Best Bid Offer).

After entering order details, you can click on Open Long to enter a long contract (to buy BTC) or click on Open Short if you would like to initiate a short position (to sell BTC).

Futures trading chart - BTC-USD

For example, you can set up a limit order of 11,300 USDT and open a long position for "BTCUSD0807" with your desired BTC amount.

Step 7: Review your executed order

After your trade is executed, your order will be submitted and you can review the status of your position by clicking on the Open Positions tab at the bottom of the trading homepage. This section shows you useful information such as the "Avg. Price," "Liquidation Price," "Unrealized P&L" and so on.

Step 8: (Optional) Close your position

If you would like to offset your open position, you can do so by clicking Close in the "Open Positions" tab.

Fees for trading crypto futures on OKEx

For trading futures on OKEx, the settlement fees are 0.03% for all tokens. The Maker fee and Taker fee also apply, depending on the trading position (i.e., Maker or Taker) that is taken by users. The percentage of Maker and Taker fees vary for different tiers of users. For more details, you can view the fee table.


Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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