How to close OKX contract

Closing a futures contract on OKX involves selecting a contract, specifying an amount, and choosing between market order for immediate execution or limit order for a specific price.

Nov 11, 2024 at 06:50 pm

How to Close an OKX Contract

OKX is a leading cryptocurrency exchange that offers a wide range of trading products, including futures contracts. Futures contracts are agreements to buy or sell an asset at a specified price on a future date. If you have opened a futures contract on OKX and want to close it, follow these steps:

1. Log in to your OKX account.
2. Click on the Futures tab.
3. Find the contract you want to close and click on the Close button.
4. Enter the amount of the contract you want to close and click on the Close button.

Your contract will be closed and the proceeds will be credited to your OKX account.

Unwinding a Futures Contract by Market Order vs. by Limit Order

There are two ways to close a futures contract on OKX: by market order or by limit order.

• Market Order

  • A market order is an order to buy or sell an asset at the current market price.
  • When you close a futures contract by market order, the contract will be closed at the best available price in the market.
  • The advantage of closing a futures contract by market order is that it is the fastest way to close the contract.
  • The disadvantage of closing a futures contract by market order is that you may not get the best possible price for the contract.

• Limit Order

  • A limit order is an order to buy or sell an asset at a specified price.
  • When you close a futures contract by limit order, the contract will only be closed if the market price reaches the specified price.
  • The advantage of closing a futures contract by limit order is that you can guarantee the price at which the contract will be closed.
  • The disadvantage of closing a futures contract by limit order is that it may take longer to close the contract if the market price does not reach the specified price.

Taking Profit and Managing Risk

When you close a futures contract, you can either take profit or manage risk.

• Taking Profit

  • If you have made a profit on your futures contract, you can close the contract to take profit.
  • To take profit, you can either close the contract by market order or by limit order.

• Managing Risk

  • If you have a loss on your futures contract, you can close the contract to manage risk.
  • To manage risk, you can either close the contract by market order or by limit order.

Margin Call and Liquidation

If you are trading futures contracts on margin, you may receive a margin call if the value of your account falls below a certain level. A margin call is a request from the exchange to add more funds to your account. If you do not add more funds to your account, your positions may be liquidated. Liquidation is the process of closing out your positions and selling your assets to cover your losses. To avoid a margin call and liquidation, you should always monitor the value of your account and add more funds if necessary.

Hedging with Options

If you are concerned about the risk of your futures contract, you can hedge your risk with options. Options are financial instruments that give you the option to buy or sell an asset at a specified price on a future date. By hedging your risk with options, you can limit your potential losses. To learn more about hedging with options, please refer to the OKX Help Center.

Conclusion

Closing a futures contract on OKX is a simple process. By following the steps in this article, you can close your contract and either take profit or manage risk. If you have any questions, please contact OKX customer support.