What Are OKEx Perpetual Contracts?
Perpetual contracts represent a groundbreaking financial derivative that bridges traditional spot trading and futures contracts. These instruments offer unique advantages:
- No expiry dates: Unlike traditional futures, they never settle.
- Daily profitๆธ ็ฎ: Positions are marked-to-market daily.
- BTC-denominated: Each contract represents $100 of BTC value.
- Flexible leverage: Ranging from 1x to 40x.
๐ Discover how perpetual contracts work
Key Differences from Quarterly Contracts
| Feature | Perpetual Contracts | Quarterly Contracts |
|---|---|---|
| Expiry | Never expires | Fixed monthly settlement |
| Pricing Mechanism | Funding rate anchors to spot | Settles at expiry index |
| Liquidation Price | Uses mark price | Uses last traded price |
| Margin Requirements | Tiered based on position size | Fixed for all users |
Advantages for Traders
1. 40x Leverage with Bi-Directional Trading
- Profit from both bullish and bearish markets
- Higher leverage reduces capital requirements while maintaining profit potential
2. Continuous Positions Without Expiry
- Hold positions indefinitely (until liquidation)
- Eliminates roll-over costs and expiry-timing risks
- Price closely tracks spot markets via funding rate mechanism
3. Reduced Manipulation Risks
Mark price calculation:
Mark Price = Index Price + EMA(Contract Price - Index Price)- Prevents "ๅฎ็น็ไป" (targeted liquidations)
- ๐ Learn about OKEx's liquidation safeguards
4. No Unfair Liquidations
- Tiered margin requirements protect large positions
- Auto-deleveraging (ADL) replaces traditional "ๅๆ" systems
- Risk reserve fund covers most liquidation gaps
5. Industry-Low Fees
- Maker fee: -0.02% (rebate)
- Taker fee: 0.04%
- Team leaders can earn additional fee discounts
Strategic Trading Considerations
For Institutional Traders:
- Take advantage of maker rebates for market-making strategies
- Use mark price for more accurate risk calculations
For Retail Traders:
- Lower capital requirements with higher leverage
- Avoid expiry-related volatility spikes
FAQ Section
Q: How often are funding payments exchanged?
A: Every 8 hours, calculated based on the premium/discount to spot.
Q: What happens during extreme volatility?
A: The tiered margin system triggers partial liquidations first.
Q: Can I arbitrage between perpetual and quarterly contracts?
A: Yes, but mind the funding rate costs in perpetuals.
Q: How is mark price different from last traded price?
A: Mark price uses EMA smoothing to prevent manipulation.
Q: Are there position limits?
A: Yes, limits increase with verification level.
Q: What's the minimum contract size?
A: 1 contract ($100 notional value).
Final Thoughts
OKEx's perpetual contracts innovation delivers:
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True 24/7 crypto exposure
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Institutional-grade risk controls
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Retail-friendly leverage options
The combination of no expiry, high leverage, and fair liquidation mechanisms makes this product particularly suited for both short-term traders and long-term holders in volatile crypto markets.