OKX cryptocurrency derivatives
OKX is a cryptocurrency, token and fiat exchange. It evolved from OKCoin, which was aimed at advanced traders. Compared to it, OKX is much simpler and clearer, focusing on cryptocurrency trading.
OKX cryptocurrency derivatives trading platform launched its own native OKB token in early 2018, following Binance and Huobi Pro. The token can be used to save on OKX crypto derivatives trading fees or to pay for exclusive services, including enhanced customer support and changing API speed limits.
Features of the exchange
OKX offers users the following features:
- Multi-platform. The cryptocurrency exchange can be used via website, mobile app or API.
- Margin trading is available with a choice of 10x or 20x leverage, allowing you to maximise your profits.
- It is possible to lock in profits through hedging. Simple hedging and arbitrage with multiple cycles.
- The OKX derivatives trading platform is available both in a browser and as desktop freeware that can be loaded.
- The design of the platform is well-designed, somewhat reminiscent of traditional financial market trading platforms.
Also, anyone with trading experience will appreciate the set of informative charts developed by OKCoin's parent company:
- The "Charts" tab contains a list of currencies supported by the exchange. For each of them, you can view a graph of their value or switch to an exchange.
- The Fit/Token tab allows you to quickly and securely exchange traditional currencies for digital currencies. The exchange rate is determined according to the rates of the world's major exchanges. There are no hidden commissions and OKX derivatives trading is done strictly at the specified prices. In addition, the platform uses an intelligent system that instantly analyses quotes from market participants.
- The Spot Market tab is the place to trade 100+ different tokens, including the newest ones. It has a user-friendly interface for professionals and beginners alike. You can trade around the clock, and funds are stored in a safe, cold wallet.
- The next tab allows you to trade futures. The use of hedging significantly reduces price fluctuations and, consequently, risk. It is possible to create contracts with terms of 1 week, 2 weeks or a quarter, as well as with any token from a wide selection, from the most promising to obscure ones. Leverage gives you the opportunity to increase your income by a factor of 10 or 20.
Also in the top menu are buttons for login and registration, social media, application and language change.
OKX crypto derivatives trading platform is currently used by residents of more than 100 countries worldwide.
Trading OKX cryptocurrency derivatives in Hong Kong
There are plenty of opportunities to make money on the platform, apart from the classic trading of popular coins.
This is done through the terminal that all traders are accustomed to, and that is available at all stock exchanges. To access it, you must select the main menu item "Trading" and proceed to the transactions on the spot market. Here you can buy and sell coins instantly. Just like fiat currencies or securities, the coins act as financial instruments.
The price movements of the different assets in this segment determine the current situation for each particular asset. Spot prices are the closest to reality and reflect current trends. Each trade is a commitment to buy or sell the cryptocurrency, which will be credited to the account upon execution of the order.
Unlike spot trading, it predominantly attracts experienced traders. This type of trading is popular because an exchange client can use investors' funds in addition to their own assets. After receiving earnings on borrowed coins, they must be repaid with a small interest.
Leverage allows you to get additional funds for making more profitable deals. For example, if you have confidence in a rapid growth of BTC, you can use margin. If it is x5, your own 500 USD can be turned into 2500.
The only condition stipulated by the site's developers is that margin trading is only available to verified clients.
The OKXChain ecosystem operates within the platform. On its blockchain, it launched an off-site digital coin exchange service in 2020. It is a full-fledged decentralised exchange.
The owners of the project position OKXChain as the world's first trading blockchain - a decentralised platform for exchanging assets, issuing cryptocurrencies by users, creating trading pairs. Based on DPOS (Delegated Proof of Stake consensus mechanism), the OKB token appeared.
The OKX cryptocurrency exchange provides access to peer-to-peer trading with low fees and high liquidity. To access the P2P platform, you need to select "Buy" in the main menu and go to the desired tab. When transactions are made, the digital assets go directly to the trader's OKX wallet.
Since the end of 2019, users of the official OKX website have been allowed to operate with futures contracts and options. OKX crypto derivatives in Hong Kong offer good returns, this type of activity is of interest to professional market players.
To access them, a trader will first have to learn the rules and answer a number of questions. The developers test the user's asset management skills and awareness.
Futures contracts for BTC, calculated in USDT, appeared on the exchange in autumn 2019. This trading option immediately became one of the most profitable activities. Each futures has an expiry date specified in its name (the marking BTC0818 indicates an expiry date of 18 August).
Trading the contracts comes down to the standard scheme: buy low, sell high.
The situation is complicated by the fact that the futures is a contract between the two parties. It spells out such things:
- The amount of coins;
- The value of the asset;
- The expiry date of the futures.
The terms are negotiated in advance and both parties to the transaction are obliged to comply with them. The seller guarantees to sell the asset at the specified price, and the buyer must buy it within the agreed time frame.
At the end of 2019, another type of derivative appeared on the exchange. Bitcoin options complemented margin trading, futures and open-ended swaps. As a result, users were able to diversify their trading strategies.
To switch to options trading, log in to the cabinet from the main menu. You need to verify your account first. Options are similar to futures in many ways, except for one detail: the obligation to redeem the underlying asset only lies with the writer of the option. The buyer has the right to exercise or opt out of the contract.
They allow users to take long positions and rise on a rising market, or to trade short and take profits on a falling market. Perpetual swaps are peer-to-peer virtual derivatives. They allow traders to bet on different cryptocurrencies.
An open-ended swap is similar in principle to a futures contract. Like options, it has no expiry date. It is settled on a daily basis.
Registration and verification
To start trading OKX derivatives in Hong Kong you should register on the exchange. The site supports 20 language versions. Language selection is done by means of the icon in the upper right corner. Select the desired language and proceed to account registration.
Registration can be done via phone number or email. The first option is only available for residents of Hong Kong, Mainland China, Germany, Morocco, Indonesia and Korea. For everyone else only email is available. To create a profile, enter your email address and click "Get Code". Within a minute you will receive a 6-digit code which you must enter into the corresponding field, then you must think of a password for your account and check the box "I have read...".
You will then be asked to choose whether you are a beginner or a professional trader. In the first case, you will be provided with the reference information, in the second case you will be allowed to trade immediately.
Verification. After that you should pass the first level of verification, which will open the possibility of fiat trading and increase your withdrawal limit to 300 BTC per day. Moreover, this is to increase the security of your account. To open desired section, click on profile icon (with avatar) and select "Verification".
In the verification section, enter your country, document type, document number, first name and last name.
Withdrawal of funds. To withdraw money from the exchange, you need to click on "Account" and select "Withdraw funds".
Then you need to select the account from which you will withdraw your cryptocurrency funds, form the transaction (amount, your wallet address and security code) and confirm the transaction.
Register on OKX and start trading as it has good trading tools, high functionality, pleasant design, clear controls, extensive security settings and relatively low trading commissions.