Some investors may not be familiar with OKX futures contracts. In simple terms, contract delivery means exchanging payment for goods. When a contract reaches its delivery date, it will be settled at a fixed time on that day. All positions will be closed at the settlement price, unrealized profits/losses become realized, and after deducting the contract's profit/loss difference, the remaining amount is transferred to the account balance.
Can OKX Futures Contracts Be Closed Anytime?
According to OKX's announcement (👉 register a new account here if you don't have one), OKEx enabled real-time settlement for all USDT-margined perpetual and delivery contracts on January 20, 2021, from 16:00 to 17:00. Real-time settlement for BTC/USDT, ETH/USDT, LTC/USDT, and EOS/USDT coin-margined contracts had already been implemented earlier.
After enabling real-time settlement, realized profits/losses from contract trading are immediately transferred to the account balance. Profits can be withdrawn anytime without waiting for daily settlement times.
Previously, most delivery and perpetual contracts in the market supported once-daily or thrice-daily settlement, meaning traders could only withdraw profits 1-3 times per day. This mechanism severely limited capital efficiency and couldn't meet traders' needs in the fast-changing crypto market.
Real-time settlement requires higher computational and risk management capabilities. OKEx is one of the few platforms supporting real-time settlement for all USDT contract currencies. Most small-to-medium exchanges haven't implemented this feature yet. Besides OKEx, Huobi Contracts also supports real-time settlement but only for select major currencies.
How to Trade OKX Futures Contracts
(1) Account Registration
- Visit the OKX official website (👉 register here), download the OKX app, and click "Register/Login" on the homepage. Select "Register Now," enter your email address, and click "Register." Then input the 6-digit verification code sent to your email (valid for 10 minutes).
- Complete phone verification by entering your number and clicking "Verify Now." Input the SMS verification code (valid for 10 minutes) and click "Next."
- Ensure your selected residence matches your ID documents. Set an account password for security and click "Next" to complete registration.
- After logging in, click the top-left menu button, navigate to "Personal Center," and complete identity verification. Level 1 verification allows crypto trading. Level 2 advanced verification grants higher trading limits.
(2) Trading Setup
1) To trade contracts, enable and set your account mode to either single-currency margin or cross-currency margin.
2) Customize contract settings by selecting trading units and order types.
(3) Trading Delivery Contracts
Delivery contracts include USDT-margined and coin-margined contracts. Here's an example using weekly coin-margined contracts:
- Transfer assets from your funding account to your trading account (skip if already done).
- On the trading page, click the dropdown next to the currency pair. Search for your preferred currency, select "Delivery" under margin trading, and choose weekly, bi-weekly, quarterly, or bi-quarterly coin-margined contracts (using quarterly contracts as an example).
- Set leverage, account mode, order type, price, and quantity. Click "Buy/Long" (bullish) or "Sell/Short" (bearish). Pending orders can be canceled.
- After execution, view position details like margin, profit, ROI, and estimated liquidation price.
- Set take-profit/stop-loss in the positions tab. Close positions by entering price/quantity or use market orders for full liquidation.
Crypto futures trading involves high risk. If concerned about volatility, avoid excessive leverage. Contracts suit short-term trading with frequent entries/exits—avoid greed since crypto prices fluctuate. Beginners may struggle with short-selling concepts but will grasp them with experience.
FAQ
Q: What happens if my futures contract reaches expiry?
A: All positions auto-close at the settlement price, converting unrealized P&L to realized amounts transferred to your balance.
Q: Is there a limit on profit withdrawals with real-time settlement?
A: No. Realized profits become available immediately without withdrawal restrictions.
Q: Which cryptocurrencies support real-time settlement on OKX?
A: All USDT-margined contracts and major coin-margined pairs (BTC, ETH, LTC, EOS) offer real-time settlement.
Q: How does leverage affect my futures trading?
A: Higher leverage amplifies both gains and losses. Beginners should start with lower multiples (5x-10x).
Q: Can I change my position after opening a futures contract?
A: Yes. You can modify take-profit/stop-loss levels or manually close positions anytime before expiry.
Q: What's the difference between quarterly and weekly contracts?
A: Quarterly contracts expire every 3 months (lower rollover frequency), while weekly contracts settle every Friday (more frequent trading opportunities).