Cryptocurrency trading has evolved far beyond simple spot transactions. With the growing popularity of derivatives, traders now have powerful tools like futures contracts to capitalize on both rising and falling markets. One of the leading platforms offering advanced trading capabilities is OKX, a global digital asset exchange that supports a wide range of trading products—including perpetual and delivery futures contracts.
This comprehensive guide walks you through how to go long and short on OKX, explains key features of its futures trading system, and helps you understand how to potentially profit from market movements—whether prices are climbing or dropping.
Understanding Long and Short Positions in Crypto Futures
In traditional finance and cryptocurrency markets alike, going long means buying an asset with the expectation that its price will rise. Conversely, going short involves selling an asset you don’t currently own (via borrowing or derivatives), anticipating that its price will fall so you can buy it back at a lower price later.
On OKX, this is made possible through futures contracts, which allow traders to speculate on future price movements without owning the underlying asset. The two main types offered are:
- Perpetual Contracts (no expiration)
- Delivery Contracts (fixed settlement date)
These contracts support both long and short positions using leverage, enabling amplified gains (and risks).
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Step-by-Step: How to Trade Long and Short on OKX
1. Fund Transfer to Futures Account
Before entering any futures trade, you must transfer funds from your spot wallet or other accounts into your futures trading account.
Steps:
- Log in to the OKX website
- Click on Assets > Fund Transfer
- Select the cryptocurrency (e.g., USDT, BTC) and move it from your Spot Account or Savings Wallet to the Perpetual Contract Account
- Enter the amount (or click “All”) and confirm the transfer
Once completed, your funds will be available for margin use in futures trading.
2. Choose Your Contract Type
OKX offers two primary categories of futures contracts:
A. Perpetual Contracts
- No expiry date
- Ideal for traders who want to hold positions indefinitely
- Price anchored to spot via funding rate mechanism
B. Delivery Contracts
- Fixed maturity dates: Weekly, Bi-weekly, Quarterly
- Automatically settled at expiry based on average index price
You can further choose between:
- USDT-margined contracts – Profits/losses calculated in stablecoin
- Coin-margined contracts – Margin and P&L in the base cryptocurrency (e.g., BTCUSD)
To access these:
- Go to Trade > Futures
- Select your preferred market (e.g., BTC-USDT-SWAP for USDT-margined perpetuals)
3. Set Account Mode and Leverage
After selecting your contract, configure your risk settings:
Account Mode Options:
- Cross Margin (Full Margin): All available balance in the account secures open positions
- Isolated Margin: Only a designated margin amount backs the position (better for risk control)
Adjust Leverage
- Click the leverage button (top-right)
- Adjust from 0.01x up to 125x, depending on the contract
- Higher leverage increases both potential returns and liquidation risk
You can also switch between contract units: number of contracts ("lots") or equivalent crypto amount ("coin value")
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4. Open and Close Positions
Now you're ready to place trades.
To Go Long (Buy):
- If you expect the price to rise
- Click Buy (or “Open Long”)
- Enter price and quantity
- Choose order type: Limit, Market, Post-only, etc.
To Go Short (Sell):
- If you anticipate a price drop
- Click Sell (or “Open Short”)
- Input desired parameters
- Confirm the short position
To exit:
- Click Close Position
- Or manually reverse the trade (sell to close long, buy to close short)
Use Take Profit / Stop Loss orders to automate exits and manage risk effectively.
Key Differences: Perpetual vs Delivery Contracts
| Feature | Perpetual Contracts | Delivery Contracts |
|---|---|---|
| Expiry Date | None – perpetual | Fixed (weekly, quarterly, etc.) |
| Settlement | Ongoing funding fees | Final settlement at expiry |
| Funding Rate | Yes – paid every 8 hours | No |
| Mark Price | Used to calculate unrealized P&L | Same principle applies |
| Best For | Active traders, swing positions | Hedgers, event-based speculation |
The funding rate ensures that perpetual contract prices stay close to spot prices. Depending on market sentiment:
- When longs dominate, they pay shorts (positive rate)
- When shorts dominate, they pay longs (negative rate)
This incentivizes balance and prevents extreme divergence.
How Can You Profit from OKX Futures Trading?
Futures trading allows you to profit in both bull and bear markets.
Example: Going Long
- You believe BTC will rise from $60,000
- Open a long position with 10x leverage
- Price rises to $66,000 → You gain 10% return on margin (vs 10% total gain without leverage)
Example: Going Short
- You expect ETH to drop from $3,000
- Open a short position
- Price falls to $2,700 → You profit from the decline
Additionally:
- Holding certain positions may earn you funding payments if you're on the minority side during high demand imbalance
- Advanced traders combine strategies like arbitrage, hedging, and grid bots for consistent returns
⚠️ Warning: While leverage magnifies profits, it also increases liquidation risk. Always use stop-losses and never trade more than you can afford to lose.
Frequently Asked Questions (FAQ)
Q1: What does "going long" and "going short" mean?
A: Going long means buying an asset expecting its price to rise. Going short means selling an asset you don’t own, expecting to buy it back cheaper later. On OKX, both are possible via futures contracts.
Q2: Is there a time limit for holding a position on OKX?
A: For perpetual contracts, no—positions can be held indefinitely as long as margin requirements are met. Delivery contracts expire on set dates and are automatically settled.
Q3: How is profit calculated in futures trading?
A: Profit depends on entry/exit price difference, position size, and leverage. It's settled in either USDT or the base coin, depending on margin type.
Q4: What causes liquidation in leveraged trading?
A: Liquidation occurs when losses deplete your margin below maintenance levels. Using isolated margin limits exposure; cross margin uses total equity but risks broader losses.
Q5: Can I trade futures with small capital?
A: Yes—OKX supports micro-contracts and low minimums. However, small accounts face higher relative risks due to volatility and fees.
Q6: Are funding rates always charged?
A: Funding is exchanged every 8 hours between longs and shorts. You only pay or receive it depending on market conditions and your position direction.
Final Tips for Safe and Effective Trading
- Start with small positions and moderate leverage (e.g., 5x–10x)
- Use stop-loss orders religiously
- Monitor funding rates before opening perpetual positions
- Stay updated with macroeconomic news affecting crypto markets
- Avoid overtrading—just because the market runs 24/7 doesn’t mean you should be active all day
By mastering how to go long and short on OKX, you unlock powerful opportunities in volatile crypto markets. Whether you're hedging existing holdings or speculating on price swings, futures trading adds depth and flexibility to your investment toolkit.
Remember: Knowledge, discipline, and risk management are the true keys to long-term success in derivatives trading.