Understanding derivatives in the cryptocurrency space can be a game-changer for traders looking to maximize returns—especially in volatile markets. One such advanced trading instrument offered by OKX is the coin-margined futures contract. This guide explains what it means, how it differs from other types of contracts, and how you can use it effectively in your trading strategy.
Whether you're new to futures or refining your expertise, this comprehensive breakdown will help you navigate coin-margined contracts with confidence.
Understanding Futures Trading
Futures trading allows investors to speculate on the future price of an asset without owning it outright. In crypto, this means you can profit from both rising and falling prices by taking either a long (buy) or short (sell) position.
For example:
- If you believe Bitcoin (BTC) will rise in value, you can open a long position. When BTC increases, you profit.
- Conversely, if you expect BTC to drop, you can open a short position, profiting when the price falls.
This flexibility makes futures trading attractive in both bull and bear markets.
OKX offers two main types of futures contracts:
- Perpetual Contracts – No expiration date; positions can be held indefinitely.
- Delivery Contracts – Have a fixed settlement date (e.g., weekly, quarterly), after which open positions are automatically closed at the average index price over the final hour.
Both types support two margin models:
- USDT-margined contracts
- Coin-margined contracts
👉 Discover how coin-margined futures can boost your trading flexibility and efficiency.
What Is a Coin-Margined Futures Contract?
A coin-margined futures contract uses the underlying cryptocurrency itself—like BTC or ETH—as collateral (margin) for opening and maintaining a position.
For instance:
- In a BTC/USD coin-margined perpetual contract, your margin is posted in BTC.
- Profits and losses are also settled in BTC.
This contrasts with USDT-margined contracts, where all values—including margin, PnL, and fees—are denominated in stablecoins like USDT.
Key Features of Coin-Margined Contracts
- Margin Asset = Base Currency: You use the same coin as the base asset (e.g., BTC) for margin.
- PnL Denominated in Base Coin: Gains or losses are reflected in BTC, not USD or USDT.
- Exposure to Volatility: Since both margin and PnL are in crypto, price swings affect your equity more directly.
- Hedging Utility: Ideal for long-term holders who want to hedge their spot holdings without selling.
This model appeals to experienced traders and HODLers who prefer to keep exposure purely within crypto rather than stablecoins.
Perpetual vs. Delivery: How Coin-Margin Applies
The concept of coin-margining applies across both perpetual and delivery contracts.
1. Coin-Margined Perpetual Contracts
These have no expiry date. To keep the contract price aligned with the spot market, a funding rate mechanism is used:
- If longs dominate, they pay shorts a funding fee.
- If shorts dominate, they pay longs.
Because these contracts never expire, traders can hold positions long-term while managing risk through leverage and risk controls.
2. Coin-Margined Delivery Contracts
These contracts expire on a set date—such as this week (weekly), next week, or quarterly. At expiry:
- All open positions are settled based on the average index price over the last hour.
- Final PnL is paid out in the base coin (e.g., BTC).
Traders often use delivery contracts for directional bets around macro events like halvings or Fed announcements.
How to Trade Coin-Margined Futures on OKX
Ready to get started? Here’s a step-by-step walkthrough of how to trade coin-margined futures on OKX.
Step 1: Set Up Your Account Mode
Before trading, ensure your account is configured correctly:
- Go to Account Settings
- Choose between Single-Currency Margin Mode or Multi-Currency Margin Mode
- Select Coin-Margin as your preferred type
Single-currency mode isolates margin per asset (e.g., BTC only covers BTC contracts), enhancing risk control.
Step 2: Transfer Funds
Move assets from your funding account to your trading account:
- Navigate to Assets > Transfer
- Select the cryptocurrency (e.g., BTC)
- Transfer to the Derivatives Account
If already done, skip this step.
Step 3: Open a Position
Let’s walk through opening a BTCUSD weekly delivery coin-margined contract:
- On the trading interface, click the dropdown next to a trading pair.
- Search for “BTC” and select Futures under margin trading.
- Choose Delivery and pick the weekly coin-margined contract.
- Set your order type (limit/market), input price and quantity.
- Click Buy to Open Long (if bullish) or Sell to Open Short (if bearish).
Unfilled orders can be canceled anytime before execution.
Step 4: Monitor Your Position
Once filled:
- View active positions in the Positions tab
- Check key metrics: margin used, unrealized PnL, ROI, estimated liquidation price
These indicators help manage risk and avoid liquidation during high volatility.
Step 5: Manage Risk with Stop-Loss & Take-Profit
In the positions panel:
- Set take-profit to lock in gains
- Define stop-loss to limit downside
Alternatively:
- Manually enter a closing order at a specific price
- Or click Market Close All for instant exit
👉 Learn advanced strategies to optimize your coin-margined futures performance.
Frequently Asked Questions (FAQ)
Q1: What’s the difference between USDT-margined and coin-margined contracts?
USDT-margined contracts use stablecoins as collateral and settle PnL in USDT, offering stable valuation. Coin-margined contracts use the base cryptocurrency (like BTC) for margin and settlement—ideal for traders wanting pure crypto exposure.
Q2: Can I lose more than my initial margin?
No. OKX uses a robust risk engine that ensures users cannot go into negative equity. If your position approaches liquidation, it will be automatically closed.
Q3: Are funding fees applicable in coin-margined perpetuals?
Yes. Funding rates apply regardless of margin type. Longs and shorts exchange payments every 8 hours based on market skew.
Q4: Do I need to manually close a delivery contract before expiry?
Not necessarily. If you hold until expiry, OKX will automatically settle your position using the final index price. However, most traders prefer to close early to avoid slippage.
Q5: Is leverage adjustable after opening a position?
Yes. On OKX, you can adjust leverage dynamically in the positions tab—allowing better control over margin usage and liquidation risk.
Q6: Which traders benefit most from coin-margined contracts?
Long-term crypto holders, miners hedging output, and institutional traders often prefer coin-margined contracts due to native asset alignment and tax/reporting simplicity.
Why Choose Coin-Margined Contracts?
While USDT-margined contracts offer stability, coin-margined futures provide unique advantages:
- Pure Crypto Exposure: Keep everything on-chain and avoid stablecoin dependency.
- Hedging Without Selling: Miners or investors can hedge BTC holdings without divesting.
- Higher Leverage Options: Some coin-margined pairs support up to 100x leverage.
- Tax Efficiency: In some jurisdictions, settlements in-kind may have favorable treatment.
However, they come with higher complexity due to dual volatility—both from price movement and margin value fluctuation.
Final Thoughts
Coin-margined futures contracts on OKX empower traders with deeper market access and strategic flexibility. Whether you’re hedging a portfolio, speculating on price swings, or managing large crypto holdings, understanding how these instruments work is crucial.
By mastering margin types, settlement mechanics, and risk tools like stop-loss and funding rates, you position yourself for smarter, more resilient trading.
👉 Start exploring coin-margined futures with powerful tools and deep liquidity today.
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