Electronic money has been on the decline since early 2018, losing more than two-thirds of its value in the period. Can you handle it? There is a way to help you in this ice age, you will still be able to make money in the market price reduction, which is the future contract.
What is the OKEx futures contract?
OKEx is a derivative offered by OKEx for the sale of digital asset contracts such as BTC and LTC. Each contract represents $ 100 worth of BTC or $ 10 worth of other digital assets (e.g., LTC, ETH, etc.).
Investors can choose Long position to make a profit when a digital asset increases, or Short position when a digital asset falls. Leverage for futures contracts is 10x and 20x.
Specifications:
USD exchange rate: BTC, LTC, ETH, ETC, BCH, XRP, EOS, BTG
Contract Rate: US $ 1 per point
Minimum price: BTC / BTG: 0.01 points; LTC and others: 0.001 points
Contract renewal: weekly, every two weeks, quarterly
BTC contract value: US $ 100; LTC and others: 10 USD
Leverage: 10x or 20x
Contract delivery time: 16:00, Friday of the week due
Payment Date: Same as the delivery date
Payment method: Payment by token
Futures contract design OKEx
The OKEx futures contract does not apply to any particular currency. It means not restricted by regulations and allows investors of any country or region to enter into a transaction.
Traditional OKEx futures are denominated in USD. Each contract represents a certain amount in BTC. The biggest problem of this contract is that the leverage varies sharply due to price fluctuations, so it is difficult to hedge the risk and price difference, especially for long-term contracts.
OKEx adjusted the contract value to US $ 100 for BTC, allowing fixed leverage to support hedging and price differences.
This design helps stabilize profits or losses: invest $ 100, profit / loss will be $ 100 * BTC price fluctuation * fixed leverage.
For example, the current price of the BTC is $ 500. An investor with a capital of 500 USD buy 1 BTC at the current price and open 50 Long contracts. When the BTC increases to $ 750 (~ 50%), the profit of the contract will be 3.3333 BTC. If the investor sells the contract, they can receive a profit of $ 2,500 (five times the capital). When the BTC increases to $ 1,000, the profit of the contract will be 5 BTC. Profit will be $ 2,500 after the sale of the contract (10 times the capital). Leverage is always stable regardless of price fluctuations.
About OKEx
OKEx focuses on the trading of electronic money into electronic money C-to-C (Crypto-to-Crypto).
The trading floor started trading on May 30, 2017 and the floor APIs were introduced to investors on June 7, 2017.
The strength of OKEx
Secure trading platform with a lot of market experience.
A large amount of virtual currency, electronic money can trade on the floor.
The trading platform has an easy-to-use interface and features that are appropriate for the user.
Transaction fee on the floor is quite low
Weakness of OKEx
Having so much electronic money makes the beginner feel dizzy, but OKEx has a feature that allows users to search and organize.
New features may make the newcomer feel difficult to understand and difficult to use, but to meet the growing demand from users, OKEx always seeks to improve the best user experience.
OKEx futures contract trading guide
For futures trading OKEx please register and visit: https://www.okex.com/future/trade, but OKEx first asks you to pass the questionnaire to make sure you know how. Asset Management, you follow the operation below:
Once completed, you will be able to participate in future contract deals on OKEx.