Perpetual contracts have become one of the most popular instruments in the cryptocurrency derivatives market, offering traders 24/7 trading opportunities without expiry dates. But if you’ve ever asked, “Why can’t I buy a perpetual contract?” or “How do I trade perpetuals on OKX?” — you’re not alone. This guide walks you through everything you need to know about perpetual contract trading, focusing on OKX, one of the world’s leading crypto exchanges.
Whether you're a beginner trying to understand how perpetual contracts work or an experienced trader optimizing your strategy, this article covers core concepts, trading types, order mechanisms, risk management, and more — all while keeping things clear and practical.
👉 Discover the smart way to start trading perpetual contracts today.
What Is a Perpetual Contract?
A perpetual contract is a type of futures contract that doesn’t have an expiration date, allowing traders to hold positions indefinitely (as long as margin requirements are met). These contracts are commonly used in cryptocurrency markets and are designed to track the price of an underlying asset — such as Bitcoin or Ethereum — using a funding rate mechanism.
Unlike traditional futures, perpetual contracts enable continuous trading with leverage, making them ideal for short-term speculation or hedging strategies.
Why Can’t I Buy a Perpetual Contract?
If you're unable to place a trade, common reasons include:
- Not completing identity verification (KYC)
- Insufficient margin balance
- Network or app connectivity issues
- Trading restrictions based on region
- Temporary maintenance or settlement periods
Ensure your account is fully verified and funded before attempting to open a position.
Trading Hours: 24/7 with Periodic Settlements
Perpetual contracts on OKX operate on a 24/7 trading schedule, allowing global access at any time. However, there’s a critical detail: settlement occurs every 8 hours, at 04:00, 12:00, and 20:00 UTC.
During settlement:
- Trading may be briefly interrupted for certain assets
- Settlement duration varies by asset (e.g., BTC might take longer than altcoins)
- Once settled, trading resumes automatically
This means some markets may resume earlier than others depending on processing speed. Always check the status of your chosen asset during these windows.
Understanding Perpetual Contract Trade Types
There are two primary actions in perpetual trading: opening and closing a position. Each has two directional options — long or short.
1. Buy Open Long (Go Long)
When you believe the price will rise, you buy open long. This establishes a long position, profiting if the market increases.
2. Sell Close Long (Exit Long)
To exit a long position, you sell close long. This offsets your existing long contract and locks in gains or losses.
3. Sell Open Short (Go Short)
If you expect prices to fall, you sell open short. This creates a short position, allowing profit from downward movement.
4. Buy Close Short (Exit Short)
To close a short trade, you buy close short, neutralizing your position and ending your exposure.
Each action directly impacts your open positions, which are consolidated automatically by the system.
Order Types and Execution Methods
Choosing the right order type is crucial for effective entry and exit. Here’s how OKX supports different trading styles:
Limit Order
Set your desired price and quantity. The order executes only when market conditions meet your criteria. You can choose from three execution modes:
- Post Only: Ensures you act as a maker (adds liquidity), avoiding taker fees
- Fill or Kill: Must fill entirely immediately; otherwise, it cancels
- Immediate or Cancel: Partial fills allowed; remainder canceled instantly
By default, limit orders remain active until manually canceled.
Trigger (Conditional) Orders
Also known as plan orders, these allow you to set conditions (like price thresholds) that trigger automatic trades. For example:
“If BTC drops below $60,000, sell short at market price.”
This helps automate strategies without constant monitoring.
Counterparty Price Order
Select this option to instantly trade at the best available opposing price (i.e., the top of the order book). You only input quantity — the system fetches the current counter price and places a limit order accordingly.
👉 Access advanced order types with powerful tools on a trusted platform.
Advanced Execution Features
For fast-moving markets, speed matters. OKX offers several tools to help you execute quickly and efficiently.
Better N-Tier Pricing ("Better 5/10/20")
Instead of picking one price, select “Better 5,” “Better 10,” or “Better 20” to automatically match against the top N levels of the opposing order book. This improves fill probability during volatility.
Example: Choosing “Better 10” lets your buy order sweep the 10 lowest sell prices until fully filled.
Lightning Close (Flash Close)
Ideal for rapid exits, especially in turbulent markets. When closing a position:
- The system checks up to 30 price tiers deep
- Fills as much as possible immediately
- Any unfilled portion becomes a limit order at the last executed price
This reduces slippage and minimizes liquidation risk during sharp swings.
Managing Your Positions
On OKX, each account holds separate long and short positions per asset. If you open multiple longs in BTC/USDT perpetuals, they merge into a single averaged position — simplifying tracking and management.
Key benefits:
- Unified profit/loss calculation
- Easier risk assessment
- Streamlined margin allocation
You cannot hold opposing positions simultaneously in the same market unless using isolated margin mode.
Trading Fees: Maker vs Taker
Fee structure depends on your role in the trade:
| Role | Description | Fee Level |
|---|---|---|
| Maker | Places new orders that add liquidity (not immediately matched) | Lower fees |
| Taker | Removes liquidity by matching existing orders | Slightly higher fees |
Fees vary based on your 30-day trading volume and VIP tier. Generally, makers receive incentives to encourage market depth.
Understanding Market Depth
Market depth reflects the volume of buy and sell orders at various price levels. A deep order book indicates strong liquidity — meaning larger orders can be filled with minimal slippage.
On OKX, the spread between adjacent bids and asks defines depth tightness. Narrow spreads suggest high competition among traders and better execution quality.
Monitoring depth helps anticipate resistance/support zones and detect potential price manipulation.
Margin and Leverage Explained
To open a leveraged position, you must deposit margin — collateral that secures your trade.
- Initial Margin: Minimum required to open a position (varies by leverage level)
- Maintenance Margin: Minimum needed to keep the position open
- Leverage Options: Ranges from 2x to 125x depending on asset and risk settings
Higher leverage amplifies both gains and losses — use cautiously.
For example:
Opening a $10,000 BTC position at 10x leverage requires $1,000 in margin.
Always maintain extra funds to avoid liquidation during drawdowns.
What Is Liquidation?
Liquidation occurs when your account equity falls below the maintenance margin level due to adverse price movements.
When this happens:
- The system forcibly closes your position
- Remaining margin may drop to zero (“blow up”)
- Additional losses are typically capped (on most platforms)
To prevent liquidation:
- Use stop-loss orders
- Avoid maximum leverage
- Monitor funding rates and mark price deviations
Risk management is essential — perpetual contracts offer high reward potential but come with significant volatility exposure.
Frequently Asked Questions (FAQ)
Q: Why can't I open a perpetual contract trade on OKX?
A: Common causes include incomplete KYC, insufficient margin, regional restrictions, or ongoing settlement. Verify your account status and ensure adequate funds.
Q: What happens during the 8-hour settlement?
A: Trading pauses briefly while funding rates are processed. Most assets resume within minutes; high-volume pairs like BTC may take slightly longer.
Q: Can I hold both long and short positions at once?
A: Only in cross-margin or isolated mode, depending on settings. By default, positions of opposite directions are offset.
Q: How are funding fees calculated?
A: Funding fees are exchanged between longs and shorts every 8 hours based on interest rate differentials and premium index. Check the funding rate indicator before entering trades.
Q: Is there a maximum leverage for perpetual contracts?
A: Yes — maximum leverage varies by asset. Major coins like BTC support up to 125x; smaller altcoins may cap at 25x or lower for risk control.
Q: How do I reduce slippage when exiting fast?
A: Use Lightning Close or Better N-Tier orders to increase execution speed across multiple price levels.
👉 Start trading perpetual contracts with precision and confidence.
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This guide ensures you understand not just how to trade perpetual contracts on OKX, but also how to do so safely and effectively. With proper knowledge and tools, you can navigate the dynamic world of crypto derivatives with greater control and clarity.