Understanding the different contract types available on leading crypto exchanges is essential for traders looking to leverage their positions, hedge risk, or execute advanced strategies. OKX, one of the world’s most comprehensive digital asset trading platforms, supports multiple contract varieties—each designed for specific trading styles, risk appetites, and market outlooks.
In this guide, we’ll break down the three main contract types offered by OKX: USDT-margined perpetual contracts, coin-margined contracts (both perpetual and delivery), and USDT-margined delivery contracts. We'll explore how they work, their key differences, and who they’re best suited for—helping you make informed decisions in your trading journey.
👉 Discover the most popular contract type trusted by thousands of traders worldwide.
Overview of Contract Types on OKX
OKX currently supports three core categories of futures contracts:
- USDT-Margined Perpetual Contracts
- Coin-Margined Contracts (Perpetual & Delivery)
- USDT-Margined Delivery Contracts
While all allow leveraged trading, they differ significantly in terms of margin currency, settlement mechanism, pricing logic, and target user base. Let’s dive into each one.
USDT-Margined Perpetual Contracts: The Most Popular Choice
Also known as "U-margined" contracts, USDT-margined perpetuals are the most widely used derivative products on OKX. They combine simplicity with powerful functionality, making them ideal for both beginners and experienced traders.
Key Features:
- All values—including margin, profit/loss, and fees—are denominated in USDT.
- No fixed expiration date; positions can be held indefinitely.
- High leverage available—up to 125x, depending on the underlying asset.
- Supports dual-position mode, allowing simultaneous long and short positions.
Because everything is priced in a stablecoin, it’s much easier to track gains and losses without worrying about volatility in the margin asset itself.
Who Should Use It?
- Traders who prefer stablecoin-based accounting.
- Short-to-medium-term speculators.
- Users running algorithmic or automated trading bots.
- Beginners wanting a straightforward entry into leveraged trading.
This contract type offers the clearest risk-reward structure and is generally recommended as the starting point for new users.
👉 Start trading with confidence using a contract type built for clarity and control.
Coin-Margined Contracts: Trade and Settle in Crypto
Coin-margined contracts use the underlying cryptocurrency (like BTC or ETH) as both margin and settlement currency. These come in two forms:
- Coin-margined perpetual contracts
- Coin-margined delivery contracts
How It Works:
If you open a BTC-margined contract on BTC/USD, your initial margin, unrealized P&L, funding payments, and final settlement are all calculated in BTC, not USDT.
For example:
A 10% price increase doesn’t just mean more USDT profit—it means you end up with more BTC after closing the position (if profitable). Conversely, losses reduce your actual coin holdings.
Advantages:
- Ideal for long-term holders who believe in the asset’s appreciation.
- Avoids converting to stablecoins; keeps exposure purely in crypto.
- Favored by "HODLers" using leverage to amplify upside without selling their stack.
Risks:
- Double-sided risk: If the coin’s price drops sharply, you lose both in value and quantity.
- Harder to calculate real-time P&L due to fluctuating fiat equivalents.
Who Should Use It?
- Long-term crypto investors comfortable with native asset volatility.
- Advanced traders managing large coin-denominated portfolios.
- Those seeking pure crypto exposure without stablecoin intermediation.
Delivery Contracts: Fixed Expiry for Strategic Planning
Unlike perpetual contracts, delivery contracts have a predetermined expiration date. OKX offers several maturities:
- Weekly
- Bi-weekly (every two weeks)
- Quarterly
At expiry, all open positions are automatically settled based on the final index price.
Key Characteristics:
- Available in both USDT-margined and coin-margined versions.
- Settlement occurs at a fixed time—no indefinite holding.
- Funding rates don’t apply (since there’s no perpetual funding mechanism).
- Often used for hedging future obligations or executing time-based strategies.
While less popular than perpetuals among retail traders, delivery contracts remain vital tools for institutional players and systematic traders.
Common Use Cases:
- Hedging upcoming income or expenses in crypto (e.g., mining rewards or vesting tokens).
- Cross-market arbitrage between spot and futures.
- Calendar spread strategies (going long one expiry while short another).
Who Should Use It?
- Institutional traders managing portfolio risk.
- Arbitrageurs exploiting price discrepancies across expiries.
- Traders with a strong view on price movement within a defined timeframe.
Frequently Asked Questions (FAQ)
Q: What’s the difference between U-margined and coin-margined contracts?
A: In U-margined contracts, everything is calculated in USDT, making profits and risks easier to understand. In coin-margined contracts, the base cryptocurrency (like BTC or ETH) serves as the accounting unit, which amplifies both gains and losses when priced in fiat terms.
Q: Are delivery contracts still relevant with perpetuals available?
A: Yes. Delivery contracts offer predictable settlement timelines, making them ideal for hedging and structured strategies. Many professional traders use them for arbitrage and risk management despite the rise of perpetuals.
Q: Which contract type is best for beginners?
A: USDT-margined perpetual contracts are highly recommended for newcomers. Their stablecoin denomination simplifies tracking performance, and features like dual-position mode enhance flexibility without adding complexity.
Q: Can I switch between contract types on OKX?
A: Yes. OKX allows seamless switching between contract types within the trading interface. However, each has unique margin requirements and risk profiles, so always review settings before placing trades.
Q: Is leverage the same across all contract types?
A: Maximum leverage varies by contract and asset. USDT-margined perpetuals often support up to 125x, while coin-margined and delivery contracts may have lower caps depending on market conditions and volatility.
Q: Do I have to pay funding fees on all contracts?
A: No. Funding fees only apply to perpetual contracts to keep prices aligned with the spot market. Delivery contracts settle at expiry, so no ongoing funding is required.
How to Choose the Right Contract Type
Here’s a quick decision guide:
| Your Goal | Recommended Contract |
|---|---|
| Simple leveraged trading with clear P&L | USDT-margined perpetual |
| Long-term bullish outlook + earn more coins | Coin-margined perpetual |
| Hedging or time-specific bets | Delivery contract (USDT or coin-margined) |
| Algorithmic or bot trading | USDT-margined perpetual (due to stable pricing) |
👉 Find the right contract type that matches your trading goals and risk profile.
Final Thoughts
OKX provides a robust suite of derivative instruments catering to diverse trading needs—from casual users exploring leverage for the first time to institutions executing complex hedging strategies. Whether you value stability (via USDT), purity of crypto exposure (via coin-margin), or precision in timing (via delivery), there’s a contract designed for you.
However, always remember: leverage magnifies both gains and losses. It’s wise to begin with small positions, use stop-loss orders, and consider practicing in a demo environment before going live.
With the right knowledge and tools, contract trading can become a powerful extension of your overall strategy—not just a gamble, but a calculated move toward financial growth.