Trading in the cryptocurrency market has evolved beyond simple spot and futures transactions. One of the more sophisticated strategies gaining popularity is spread trading—a method that capitalizes on price differences between related financial instruments. On OKX, this strategy is streamlined through Nitro Spreads, a powerful feature within the Liquid Marketplace that simplifies complex trades into one-click executions.
Nitro Spreads allows traders to engage in spread and basis trading with zero leg risk and minimal slippage. Whether you're interested in funding rate farming, spot-futures carry trades, or calendar rolls, this tool offers a seamless way to execute delta-neutral strategies across various asset pairs.
Understanding Spread Trading
At its core, spread trading involves taking offsetting positions in two correlated assets—buying one while simultaneously selling the other. The goal isn't to predict market direction but to profit from the changing spread, or price difference, between these instruments.
Common spread configurations include:
- Spot vs Perpetual Futures (e.g., BTC/USDT spot vs BTC/USDT perpetual)
- Spot vs Quarterly Futures (e.g., ETH/USDT spot vs ETH/USD quarterly future)
- Futures vs Futures with different expiration dates (e.g., LTC/USDT Quarterly vs Bi-Quarterly Futures)
👉 Discover how professional traders use spread strategies for consistent returns.
A key advantage of spread trading is delta neutrality. Delta refers to how an instrument’s price moves relative to the underlying asset. Since both legs of a spread typically move in tandem with the base asset, gains in one position offset losses in the other when the market moves up or down. This makes spread trading less sensitive to overall price swings and more focused on relative value shifts—ideal for volatile crypto markets.
For example, if BTC rises by $1:
- A long BTC/USDT spot position gains value
- A short BTC/USDT perpetual position loses value
- If positions are equal, the net change is near zero
This risk mitigation is why many advanced traders prefer spreads during uncertain market conditions.
How to Trade on OKX Nitro Spreads
Nitro Spreads revolutionizes traditional spread trading by eliminating manual execution across multiple orderbooks. Instead, traders can open or close entire spreads with a single action—reducing execution time, minimizing slippage, and removing leg risk entirely.
Placing a Spread Order
To get started:
- Log in to your OKX account
- Navigate to Trade > Liquid Marketplace > Nitro Spreads
- Choose your preferred market: currently BTC/USDT and ETH/USDT are supported
Once inside the Nitro Spreads interface:
Select the spread you want to trade from the grid
- Click Ask to buy the spread (sell nearer-dated instrument, buy further-dated)
- Click Bid to sell the spread (buy nearer-dated instrument, sell further-dated)
After selecting your spread, an orderbook will appear. Enter your desired:
- Price
- Quantity
Then click Execute to confirm.
Orders that cross the best available price (Ask when buying, Bid when selling) will fill immediately. Otherwise, they’ll be placed on the respective orderbook.
All orders remain active for up to 7 days before automatic cancellation.
Canceling an Open Order
You can cancel open orders in two ways:
Method 1: Via Spread Tile
- Look for tiles with a circled number indicating active orders
- Click the tile
- Go to Open Orders
- Select Cancel next to the order
Method 2: Direct from Open Orders Tab
- Open the Nitro Spreads page
- Locate the Open Orders section
- Click Cancel on any pending order
Immediate Execution with RFQ
If you have an open limit order but want faster execution, use the Send as RFQ (Request for Quote) option under Open Orders. This sends your order directly to qualified market makers who can provide instant pricing and execution—perfect for time-sensitive opportunities.
👉 Access real-time liquidity and execute smarter trades today.
Fees and Cost Efficiency
Trading efficiency isn’t just about speed—it’s also about cost.
- VIP users: Enjoy 50% lower fees compared to executing both legs separately on the central orderbook
- Standard users: Pay standard fees per leg, aligned with corresponding instrument rates
This fee structure rewards high-volume traders while keeping entry accessible for all levels.
Key Features and Interpretations
Supported Instruments
Currently, Nitro Spreads supports:
- Tokens: BTC, ETH
- Instrument types: USDT-Margined Perpetuals, Quarterly Futures, and Bi-Quarterly Futures
More assets and contract types are expected in future updates.
Supported Spread Combinations
Available pairings include:
- Spot vs Perpetual
- Spot vs Futures
- Perpetual vs Futures
- Futures vs Futures (e.g., Quarterly vs Bi-Quarterly)
The maturity hierarchy—from farthest to nearest—is:
Bi-Quarterly Futures > Quarterly Futures > Perpetual > Spot
Interpreting Bid and Ask Prices
The prices shown on spread tiles represent the net spread value after execution:
- Calculated as: Price of further-dated instrument – Price of nearer-dated instrument
| Action | Meaning |
|---|---|
| Buying (Ask) | Sell near leg, buy far leg |
| Selling (Bid) | Buy near leg, sell far leg |
Negative spread values are possible and indicate inverted markets (backwardation).
What Is BBO Offset?
Best-Bid-Offer (BBO) Offset helps you assess whether Nitro Spreads offers better pricing than executing manually on the central orderbook.
It compares:
- Best available price on Nitro Spreads
- Implied best price from executing both legs separately
When BBO offset is negative, Nitro Spreads provides a better rate—indicated visually by a white border around the tile.
For Ask side: Implied Price = Lowest Ask (far leg) – Highest Bid (near leg)
For Bid side: Implied Price = Highest Bid (far leg) – Lowest Ask (near leg)
Liquidity and Position Management
- Liquidity isolation: Nitro Spreads uses a dedicated orderbook; it does not share depth with the central markets.
- Post-trade flexibility: Once settled, individual legs become tradable positions in the central orderbook.
- Margin compatibility: Positions or assets held in the central orderbook can be used as margin for Nitro Spread trades—maximizing capital efficiency.
Frequently Asked Questions (FAQ)
What tokens and instruments does Nitro Spreads support?
Currently supported tokens are BTC and ETH. Instruments include USDT-margined perpetuals, quarterly futures, and bi-quarterly futures. More assets will be added over time.
Which spread combinations are available?
Supported combinations include Spot vs Perpetual, Spot vs Futures, Perpetual vs Futures, and Futures vs Futures (with varying expiry dates).
How do I read bid and ask prices on spread tiles?
The displayed price reflects the difference between the filled prices of the two legs. “Ask” means buying the spread (sell near, buy far), while “Bid” means selling it (buy near, sell far).
What does BBO Offset mean?
BBO Offset shows how Nitro Spreads pricing compares to executing manually. A negative value means Nitro offers better pricing than the central orderbook.
Is liquidity shared with the central orderbook?
No. Nitro Spreads has its own isolated liquidity pool. Orders placed here won’t appear in the central book, and vice versa.
Can I trade individual legs after settlement?
Yes. After a spread trade settles, each leg becomes a standalone position that can be managed or traded independently in the central orderbook.
Can I use existing positions as margin?
Absolutely. Any eligible positions or assets from the central orderbook can be used as margin for trading on Nitro Spreads—enabling efficient cross-market exposure.
👉 Start trading advanced strategies with precision and confidence on OKX.