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What are the perpetual contract trading rules of OKEx?

OKX's perpetual contracts provide traders with a continuous and versatile platform for speculating on asset price movements without expiration constraints or physical delivery requirements.

Oct 22, 2024 at 11:48 pm

Perpetual Contract Trading Rules of OKX

1. Definition

Perpetual contracts are leveraged derivative financial instruments that allow traders to speculate on the price movements of underlying assets without an expiration date. They are settled in cash, and profits and losses are realized in real-time.

2. Trading Hours

Perpetual contracts on OKX are traded 24/7, except during scheduled maintenance windows.

3. Contract Specifications

Each perpetual contract has its own specifications, including:

  • Underlying asset: The asset or index that the contract tracks.
  • Contract size: The number of units of the underlying asset represented by each contract.
  • Tick size: The minimum price change allowed.
  • Funding rate: The periodic payment made between traders to ensure that the contract price aligns with the spot market price.

4. Margin Requirements

To trade perpetual contracts, traders must maintain a margin balance. The margin requirement is the minimum amount of funds that must be held in the trading account to open and maintain a position.

5. Leverage

Perpetual contracts offer leverage, allowing traders to control a larger position size with a smaller amount of capital. However, higher leverage also increases the risk of losses.

6. Stop-Loss Orders

Stop-loss orders can be used to limit potential losses. When the market price reaches the specified stop-loss price, the order is executed and the position is closed.

7. Take-Profit Orders

Take-profit orders can be used to sell a position at a specified price to secure profits. When the market price reaches the specified take-profit price, the order is executed and the position is closed.

8. Risk Management

It is crucial for traders to manage their risk effectively when trading perpetual contracts. This includes setting appropriate leverage levels, using stop-loss and take-profit orders, and monitoring positions regularly.

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The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

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