Bitcoin Contract Trading Guide: How to Profit in Both Bull and Bear Markets

Understanding Contract Trading

OKX offers two primary types of contract trading products based on expiration terms:

1. Delivery Contracts

• Feature fixed expiration dates
• Automatically settle at the arithmetic average price of the index's last hour if not closed

• Four subcategories:

  • Weekly contracts
  • Bi-weekly contracts
  • Quarterly contracts
  • Bi-quarterly contracts

2. Perpetual Contracts

• No expiration date

• Utilize funding rate mechanism:

  • When bullish sentiment dominates: Longs pay shorts
  • When bearish sentiment dominates: Shorts pay longs

👉 Master advanced trading strategies

Contract Trading by Margin Type

Step-by-Step Contract Trading Process

I. Account Configuration

1. Enable either:

   • Single-currency margin mode
   • Cross-currency margin mode

2. Customize:

   • Trading units
   • Order placement styles

II. Trading Delivery Contracts (Coin-Margined Example)

1. Asset Transfer

   • Move funds from main account to trading account

2. Contract Selection

   • Search desired cryptocurrency pair
   • Select "Delivery" under margin trading
   • Choose expiration period (weekly/bi-weekly/quarterly)

3. Order Placement

   • Select account mode and order type
   • Enter price/quantity
   • Choose "Buy" (long) or "Sell" (short)

4. Position Management

   • View real-time data: margin, P&L, ROI, liquidation price
   • Set stop-loss/take-profit

5. Closing Positions

   • Manual close (specify price/amount)
   • Market close (instant full position)

👉 Optimize your trading performance

III. Trading Perpetual Contracts (USDT-Margined Example)

1. Asset Transfer (Same as above)

2. Contract Selection

   • Search cryptocurrency pair
   • Select "Perpetual" under margin trading
   • Choose USDT-margined contract

3-5. Order Placement & Management (Same workflow as delivery contracts)

Key Advantages of Contract Trading

• Profit potential in both rising AND falling markets
• Flexible margin options (25+ supported coins)
• Advanced risk management tools
• Deep liquidity across major pairs

FAQ Section

Q: What's the minimum investment for contract trading?
A: Varies by contract, but typically starts at $10 equivalent.

Q: How often do perpetual contracts pay funding rates?
A: Every 8 hours at 00:00, 08:00, and 16:00 UTC.

Q: Can I trade contracts on mobile?
A: Yes, via OKX's iOS/Android apps with full functionality.

Q: What's the main risk in contract trading?
A: Leverage magnifies both gains and losses - proper risk management is essential.

Q: How do I calculate potential profits?
A: (Contract Size × Price Difference) ÷ Entry Price × Leverage

Q: Where can I practice without real money?
A: Use OKX's demo trading environment with virtual funds.