Understanding Spread Express Trading
Spread Express is OKX's innovative product designed for market-neutral strategies. It capitalizes on price differences (spreads) between assets across different markets, such as between spot and futures contracts. By simultaneously holding long and short positions of equal size in correlated products, traders can hedge risks and aim for consistent profits.
Key Features of Spread Express:
- Market-Neutral Strategy: Balances opposing positions to minimize directional market risk.
- Simultaneous Leg Execution: Eliminates single-leg exposure by trading both positions at once.
- Reduced Slippage: Locks in desired spreads more effectively than manual order-book trading.
Spread Express Mechanism Explained
Core Principle
This strategy involves:
- Dual-Leg Trading: Buying one product while selling an equivalent amount of a correlated product (e.g., spot vs. perpetual contracts).
- Delta Neutrality: Opposite positions cancel out market-directional exposure, focusing purely on spread profitability.
Example:
- Buy Module: Purchase near-term expiry products + sell far-term expiry products.
- Sell Module: Sell near-term expiry products + buy far-term expiry products.
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Advantages Over Traditional Spread Trading
| Feature | Manual Order Book | OKX Spread Express |
|---|---|---|
| Execution Speed | Sequential legs | Simultaneous legs |
| Price Lock | Subject to delay | Instant locking |
| Risk Exposure | Single-leg risk | Zero single-leg risk |
Supported Trading Pairs
OKX currently supports these combinations:
- Spot vs. Perpetual
- Spot vs. Delivery
- Perpetual vs. Delivery
- Delivery vs. Delivery
Fees and BBO Spread
Fee Structure:
- VIP Users: 50% lower fees compared to separate leg orders.
- Regular Users: Standard OKX fee rates apply per leg.
BBO (Best Bid Offer):
- Negative BBO indicates Spread Express prices are better than top-order-book prices.
- Real-time BBO values help identify optimal entry points.
Step-by-Step Trading Guide
Access Spread Express:
- Navigate: [OKX Platform] → [Trading] → [Liquidity Market] → [Spread Express].
Place Orders:
- Select "Buy" to sell spreads or "Sell" to buy spreads.
- Enter price/quantity and execute.
Order Management:
- Open orders display with white-bordered grids.
- Cancel individual orders via the active orders panel.
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FAQs
Q: Can I use central order-book positions as collateral?
A: Yes, assets in Spread Express can serve as margin collateral.
Q: Are Spread Express orders visible in the central order book?
A: No, Spread Express has dedicated liquidity separate from main order books.
Q: How are expired orders handled?
A: Untraded orders auto-cancel after 7 days.
Q: Can I trade individual legs post-settlement?
A: Yes, settled legs convert to standalone positions for separate trading.
Pro Tips
- Monitor BBO values for cost-efficient entries.
- Combine with OKX's analytics tools to identify high-probability spreads.
- Use modular trading to adapt to changing market conditions.
Note: Complete OKX identity verification to access advanced features.