How to Go Long and Short on OKX: A Complete Guide to Futures Trading

Cryptocurrency trading has evolved far beyond simple spot purchases. With the growing popularity of derivatives, platforms like OKX (formerly known as OKEx) now offer advanced trading tools such as futures contracts, allowing traders to profit from both rising and falling markets. Whether you're new to crypto or looking to expand your trading strategies, understanding how to go long and short on OKX is essential.

This guide walks you through the entire process of futures trading on OKX—from fund transfers and account setup to opening and closing positions—while explaining key concepts like perpetual vs. delivery contracts, margin types, and risk management.

Understanding Long and Short Positions on OKX

At its core, futures trading allows investors to speculate on the future price of an asset without owning it. On OKX, traders can go long (buy) if they expect prices to rise, or go short (sell) if they anticipate a decline.

The platform supports two main types of futures:

Perpetual Contracts – No expiration date; ideal for long-term speculation.
Delivery Contracts – Have fixed settlement dates (e.g., weekly, quarterly).

Both contract types support USDT-margined and coin-margined positions, giving users flexibility in how they manage risk and collateral.

👉 Discover how to start trading futures with powerful tools and deep liquidity.

Step-by-Step: How to Trade Futures on OKX

Step 1: Transfer Funds to Your Futures Account

Before placing any trades, you need to move funds into your futures wallet.

Log in to your OKX account.
Click on "Assets" > "Fund Transfer".
Select the source account (e.g., Spot Wallet) and destination (Perpetual Futures).
Choose the cryptocurrency (e.g., USDT, BTC) and amount.
Confirm the transfer.

Once completed, your balance will be available for trading in the futures section.

Step 2: Choose Your Contract Type

Navigate to "Trade" at the top of the page.
Select "Perpetual" or "Delivery" under Futures.
Pick your preferred market (e.g., BTC-USDT, ETH-BTC).
Decide between:
- USDT-margined contracts: Profits/losses calculated in stablecoins.
- Coin-margined contracts: Settlement in the underlying cryptocurrency.

Each option caters to different risk appetites and trading goals.

Step 3: Set Your Account Mode and Leverage

OKX offers two margin modes:

Cross Margin (Full Margin): Uses your entire account equity as collateral for the position. Reduces liquidation risk but exposes more capital.
Isolated Margin: Limits risk to a specific amount allocated to that trade only.

To adjust settings:

Click the "Isolated/Cross" button on the trading interface.
Set your desired leverage—anywhere from 0.01x to 125x.
Change the trading unit from "Contracts" to "Size in Coins" if preferred.

Higher leverage amplifies both gains and losses—use cautiously.

👉 Learn how professional traders use leverage wisely across volatile markets.

Step 4: Open and Close Positions

Now you’re ready to trade.

In the trading panel, select your order type:
- Limit Order: Set a specific price.
- Market Order: Execute immediately at current price.
- Stop-Limit / Stop-Market: For stop-loss or take-profit entries.
Enter the quantity.
Click:
- "Buy" / "Open Long" to go long.
- "Sell" / "Open Short" to go short.

To exit:

Click "Close Position" or place an opposite order (sell to close long, buy to close short).

Use Take Profit & Stop Loss orders to automate exits and protect profits.

Perpetual vs. Delivery Contracts: Key Differences

Feature	Perpetual Contracts	Delivery Contracts
Expiration	No expiry – perpetual	Fixed settlement date
Settlement	Ongoing funding fees	Settled at maturity
Price Anchoring	Funded via periodic payments	Based on index average at expiry

Funding Rate Mechanism

Since perpetual contracts don’t expire, OKX uses a funding rate system to keep contract prices aligned with spot prices.

If funding rate is positive, longs pay shorts.
If negative, shorts pay longs.

Funding occurs every 8 hours. Traders can even profit from funding by strategically holding positions.

How Can You Profit from OKX Futures?

Futures trading enables profit opportunities regardless of market direction:

Bullish? Go long: Buy low, sell high when price rises.
Bearish? Go short: Sell high, buy back lower when price drops.

For example:

You believe Bitcoin will drop from $60,000. You open a **short position** with 10x leverage. If BTC falls to $55,000, your return is amplified—though losses also increase if it rises instead.

Additionally:

Traders can earn from funding payments by holding positions during favorable funding periods.
Arbitrage opportunities exist between spot and futures prices.

Always assess market trends, use technical analysis, and set clear entry/exit rules.

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Frequently Asked Questions (FAQ)

Q1: What does "going long" and "going short" mean?

Going long means buying a contract expecting the price to rise. Going short means selling a contract first, intending to buy it back cheaper later. Both are core strategies in futures trading.

Q2: Is there a difference between USDT-margined and coin-margined contracts?

Yes. With USDT-margined, profits and losses are denominated in USDT, making value tracking easier. With coin-margined, settlement occurs in the base cryptocurrency (e.g., BTC), which introduces additional volatility due to price swings in the margin asset itself.

Q3: When are funding fees charged on perpetual contracts?

Funding fees are exchanged every 8 hours (at 04:00, 12:00, and 20:00 UTC). You only pay or receive funding if you hold a position at these times.

Q4: Can I lose more than my initial investment?

No—OKX uses a risk engine that ensures maximum loss equals your position margin. However, under extreme volatility, there’s a small chance of entering the insurance fund deficit scenario, though rare.

Q5: How do I avoid liquidation?

Use lower leverage, set stop-loss orders, monitor your maintenance margin level, and avoid overexposure during high-volatility events like macroeconomic news releases.

Q6: Are OKX futures available worldwide?

While OKX serves global users, access may vary by region due to regulatory restrictions. Always ensure compliance with local laws before trading.

Final Tips for Safe and Effective Trading

Start with small positions and practice with demo accounts.
Never invest more than you can afford to lose.
Stay updated on market news and macroeconomic trends.
Use multi-factor authentication (MFA) for account security.

Trading futures on OKX opens powerful opportunities—but requires discipline, knowledge, and sound risk management.

👉 Start exploring advanced trading features with real-time data and deep market depth.