What Are OKX USDT Perpetual Contracts?
OKX USDT perpetual contracts are derivative products settled in USDT (Tether), where each contract represents a specific quantity of cryptocurrency. For example:
- BTCUSDT Contract: 1 contract = 0.01 BTC
- ETHUSDT Contract: 1 contract = 0.1 ETH
Traders can:
- Go Long: Profit from price increases by buying contracts
- Go Short: Profit from price declines by selling contracts
with adjustable leverage from 0.01x to 100x.
👉 Discover how to maximize profits with OKX perpetual contracts
Key Differences Between Perpetual and Quarterly Futures
| Feature | Perpetual Contracts | Quarterly Futures |
|---|---|---|
| Expiration | No expiry date | Fixed monthly settlement |
| Pricing Mechanism | Funding rate anchors to spot | Settles at expiration price |
| Settlement | Every 8 hours (8:00/16:00/24:00 HKT) | At expiration only |
Unique Advantages of Perpetuals
- Mark Price System: Prevents unnecessary liquidations during volatility
- Auto-Deleveraging: Partial position reduction for large accounts (Level 3+)
- Tiered Margin: Higher positions require more maintenance margin
Risks of USDT Perpetual Contracts
Major Trading Risks
- Leverage Dangers: Up to 100x amplification of both gains/losses
- Market Volatility: 24/7 trading with no price limits
- Technical Complexity: Requires advanced charting skills (K-line/MA analysis)
- Regulatory Uncertainty: Varying global cryptocurrency laws
"Perpetual contracts are professional tools – improper use can lead to catastrophic losses." – Crypto Trading Expert
FAQ: Perpetual Contracts Demystified
Q: How does the funding rate work?
A: Payments between long/short positions occur every 8 hours to maintain price alignment.
Q: What's the minimum leverage on OKX?
A: 0.01x – allowing ultra-conservative positions.
Q: Can I hold positions indefinitely?
A: Yes, perpetual contracts never expire (unlike quarterly futures).
Q: How does partial liquidation work?
A: Large accounts get gradual position reductions instead of full liquidation.
Strategic Trading Tips
- Start Small: Use <5x leverage while learning
- Set Stops: Always define risk limits per trade
- Monitor Funding: Avoid holding during high-rate periods
- Diversify: Spread risk across multiple crypto pairs
👉 Ready to trade? Start with OKX's industry-leading platform
Note: This guide excludes promotional content per editorial guidelines. All trading involves risk – only invest what you can afford to lose.
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