Understanding Coin-Margined Contracts
Coin-margined contracts are cryptocurrency derivatives that use a platform's native token (e.g., OKB) as both collateral and settlement currency. Unlike traditional fiat-denominated contracts, these eliminate currency fluctuation effects, allowing traders to focus purely on cryptocurrency price movements.
Key Features:
- Native Token Settlement: All profits/losses settled in OKB
- Reduced Fiat Exposure: Removes exchange rate risks
- Platform Integration: Seamless with OKB ecosystem
Step-by-Step Trading Process
1. Account Setup & Funding
- Register and complete KYC verification on OKX
- Deposit OKB or supported cryptocurrencies into your wallet
- 👉 Get started with OKX wallet funding
2. Navigating to Contract Trading
- Log into your OKX account
- Select "Derivatives" tab
- Choose "Coin-Margined Contracts"
- Select your preferred trading pair
3. Contract Interface Breakdown
| Component | Description |
|---|---|
| Index Price | Weighted average reflecting true asset value |
| Mark Price | Adjusted price incorporating funding rates and premium/discount |
| Last Price | Most recent transaction price |
| Funding Rate | Periodic payments between long/short positions |
| Position | Your current exposure |
4. Placing Orders
- Select position type (Long/Short)
- Enter trade amount
- Adjust leverage (optional)
Set advanced order types:
- Limit orders
- Stop-loss/take-profit
- OCO (One-Cancels-the-Other)
5. Risk Management Essentials
- Position Sizing: Never risk >2% per trade
- Leverage Caution: Higher multipliers increase liquidation risk
- Funding Awareness: Monitor periodic rate payments
6. Closing Positions
Execute opposite order to:
- Realize profits
- Cut losses
- Rebalance portfolio
Pro Trading Tips
- Practice First: Use OKX's demo account
- Leverage Wisely: Start with 5x or lower
- Track Funding: Schedule around rate intervals
- Diversify: Spread across multiple contracts
👉 Master advanced trading strategies
Frequently Asked Questions
What's the minimum deposit for OKB contracts?
There's no universal minimum - it depends on the contract specifications and your desired position size. However, sufficient collateral must cover initial margin requirements.
How often are funding rates applied?
Funding typically occurs every 8 hours (00:00, 08:00, and 16:00 UTC), but check specific contract terms as rates vary by market conditions.
Can I trade coin-margined contracts on mobile?
Yes, OKX offers full contract trading functionality through their iOS and Android apps with identical features to desktop.
What happens if my position gets liquidated?
When maintenance margin isn't met, positions automatically close. Any remaining collateral (after covering losses) returns to your wallet.
Are coin-margined contracts better than USDT contracts?
Neither is inherently superior - coin-margined contracts benefit OKB holders avoiding conversion fees, while USDT contracts offer stablecoin price stability.
How are profits taxed?
Tax treatment varies by jurisdiction. Most regions treat crypto-to-crypto trades as taxable events - consult a local tax professional.
Key Takeaways
- Coin-margined contracts offer native token efficiency
- OKX provides robust trading tools and analytics
- Proper risk management is crucial
- Demo trading builds confidence before live execution
Remember: Crypto derivatives carry substantial risk - only trade with funds you can afford to lose.