OKX cryptocurrency derivatives
The OKX cryptocurrency derivatives trading platform is a cryptocurrency exchange that allows users to trade, speculate, and margin trade in digital asset futures.
In 2015, the Hong Kong-based cryptocurrency exchange OKX was established. It offers 500 currency pairs for trading and is ranked third in the cryptocurrency exchange rankings (behind Binance and Huobi) in terms of daily transaction volume. The resource's interface supports 20 languages.
OKX crypto derivatives trading platform is suitable for both beginners and experienced traders who are actively engaged in margin trading in cryptocurrencies. This is evidenced by the fact that its functionality is very extensive. More than 500 currency pairs are available to users, which are traded with such crypto-assets as: Bitcoin (BTC), Tether (USDT), Ethereum (ETH), OKB (the exchange's own token OKX).
Features of the OKX derivatives trading platform
One of the most important features of the OKX terminal is that it is offered in a desktop version with hard disk download (similar to the well-known Metatrader forex terminals). Mobile versions for Android and iOS are available. Users can also work directly from their browser. In terms of functionality, the platform is rich with a variety of tools. Here you can add indicators, choose the type of price presentation (the default is Japanese candles) and change the colour scheme. Indices trading is available on the exchange. There is also an opportunity of C2C trading (i.e. between clients). Token trading and the ability to work with futures contracts (with margin functions) are also available. The user can use more funds than they have in their account.
Safety on site
OKX's creators place a premium on security and the use of appropriate solutions to safeguard clients' assets and personal information, which is why the exchange has never been hacked since its inception in 2014. Traders can set up 2FA via Google Authenticator for login, financial actions, and changing security parameters; verification codes via SMS; additional password for OKX cryptocurrency derivatives trading operations; notification and confirmation of actions via email; and setting the frequency of password re-entry during exchange activity in the Security tab of their personal cabinet. To safeguard users from fraudsters, every e-mail from OKX has an anti-phishing code.
OKX Cloud allows you to create your own exchange with maximum liquidity in the market.
The service is equipped with core OKX technologies, including a matching system, hot and cold wallets, and an asset settlement system to provide a secure trading environment.
OKX Cloud offers spot and C2C trading. C2C trading currently allows conversion between CNY, EUR, GPB and other and major digital assets.
OKB exchange's own cryptocurrency
As already mentioned, this exchange has its own personal utility token OKB, which can be used to trade cryptocurrencies as well as receive some kind of rewards. The issuance of all tokens is 1 billion OKB, of which 70% are not freely available. In order for investors to buy the tokens, the exchange distributes 50% of the commissions of all transactions on the OKX crypto derivatives trading floor to the owners of their digital shares. Some sort of commission privileges are also given out to investors.
Mobile app Android and iOS
For the remote operation of the exchange, OKX provides users with an app for Android and iOS, which can be downloaded here: Google Play AppStore The app offers the complete exchange functionality. In addition, the browser-based version of OKX is suitable for use on mobile devices.
Derivatives are derivative financial instruments
Traditionally, derivatives are understood to be 4 types of instruments: SWOP agreements, options, futures and forward contracts.
Derivatives exist only if there is an underlying asset on which they are based. By their very nature, derivatives contract entitle and/or oblige one party to buy or sell currency, securities, commodity to the other party, and the other party undertakes to accept (buy or sell) these assets at a pre-determined date at a pre-determined price.
Also related to derivatives is the concept of "hedging", the use of which can minimise the risks of future purchase or future sale of the underlying asset by entering into a corresponding contract.
There is also the notion of "arbitrage", which is the simultaneous opening of positions on several markets in order to profit from the divergence in prices of the same assets.
Forward contracts can be:
- Interest rates;
- Commodity stock contracts;
- Rates and Settlement Contracts.
Futures contracts differ from forward contracts in their exchange-traded nature and, as a consequence, have the following characteristics:
- Standardised conditions of the contract (except price);
- Only professional participants take part in trading;
- There are "classes" and "series" of futures contracts;
- Trading is carried out according to the established rules.
SWOP agreements, features:
- There are "buyer" and "seller" SWOPs;
- Distinguished by fixed and floating payments;
- SWOP Reference Rate: The spot rate at which the floating part of the payment is determined (sometimes referred to as the "reference rate").
SWOPs are: foreign exchange, interest rate, commodity, and credit default rate (CDS).
Options are bilateral agreements that give one party the right to require the other party of the agreement to perform on the underlying asset at a specified time.
Options have the following characteristics:
- There are two types of options: buyer (Call) and seller (Put);
- Can be exchange traded or over-the-counter;
- Freely negotiable or embedded;
- American (can be exercised at any time from the start date of the option) and European (can only be exercised on a specific date).
How to trade on OKX cryptocurrency derivatives in Nigeria?
- Select the desired type of trading (spot or margin);
- Select the order type and the pair;
- Enter an amount;
- Wait for the order to execute;
- Take profit and execute it again.
You can access OKX trading under the tab "Trading", where you can select spot or margin trading.
OKX trading interface
The OKX trading terminal is very compact and accommodates the most important tools in one window.
The trading interface of the OKX cryptocurrency will be examined using spot trading as an example. To do so, go to "Trading" "Basic Trading". When you first log in, the platform will ask you about your trading experience and offer a short tutorial on how to set up the terminal:
- Buy/Sell tools to set up different types of orders to buy and sell cryptocurrencies.
- Order Book/Bidding History displays executed orders as well as limit orders placed (stack).
- Chart. There are two chart modes: the original version developed by OKX and the embedded TradingView terminal with all instruments. Although you can see by comparison that the original version is very similar to TradingView.
- Market Data/Information/Settings are tools which enhance the usability of the exchange and allow you to customise the interface.
The second window contains tools that display open orders and order history:
- Open orders trades in progress.
- Order history closed trades (including cancelled ones you can see).
- Assets cryptocurrencies with which transactions were conducted. Through search you can find a specific cryptocurrency. In addition, there are tools for quick access to account funding.
All types sort orders by market type. There are five markets available on OKX (spot, open-ended swaps, futures, margin, options).
Limit/Market This tab allows you to select the type of order. In addition to limit and market orders, there is also an extended limit, stop limit and limit order with a trigger.
Margin trading on OKX crypto derivatives in Nigeria
Margin Trading is available under the tab "Trading" "Margin Trading".
The interface of the trading terminal is identical to that on basic trading with the only differences being the tools to create orders.
OKX has a maximum leverage of x125, which makes it attractive to traders who prefer to trade at higher risk.
There are also additional tools on the exchange that allow you to calculate a strategy in detail. You should also read the rules carefully before starting margin trading.
There are five types of orders on OKX:
- Market buying or selling cryptocurrencies at market price;
- Limit order sets the price at which the order is to be executed. This type of order immediately reserves a balance;
- Advanced Limit a limit order with additional conditions;
- Stop Limit a limit order with a set stop price at which it is executed. Since the balance is not reserved, the exchange warns that the order may not be executed under certain conditions (high volatility, insufficient balance, etc.);
- Triggered limit a limit order with a set trigger at which it is activated. It is also triggered without a balance reservation.
Any user of the exchange can join the affiliate program and earn commissions by promoting OKX.
Partners receive up to 30% commissions every time their invited users make a transaction on the exchange.
To become an OKX affiliate, you need to link to OKX in your articles, create new content, or place ads on your site. When 10 new users sign up through your link, you become an OKX Affiliate, and start receiving a commission from each transaction of referrals.
If your referral also becomes an OKX Affiliate, you can earn 10% of the sub-affiliate's commission.
You can deposit any token into your account that's where the built-in multi-currency wallet comes in handy. Deposit procedure will take you only a few clicks: Choose cryptocurrency, which we will use to top-up our wallet with. Copy the recharge address and send the required amount to it.
Considerations: If your wallet does not support multi-currency wallets, use alternate funding address; only send the currency you have selected for funding. That is, if you need to recharge your BTC-deposit, there is no reason to try to load LTC into it. If you transfer the wrong cryptocurrency, it will eventually be irretrievably lost; by default, all transferred funds will be available in "Spot trading account" tab. If you need to transfer them to a futures account, for example, use an in-site transfer.
In general, it is worth starting to trade OKX derivatives in Nigeria, as it is an exchange with a huge set of features and decent security, which is especially liked by experienced traders.
New traders can also easily get used to this thanks to the design of the website and the simplicity of the OKX derivatives trading interface.