The difference between okex leverage and contracts

OKEx provides two types of derivatives transactions: leverage trading and contract trading. The main difference is: Transaction object: Margin trading is spot assets, and contract trading is contracts. Margin requirements: fixed for leverage trading and variable for contract trading. Leverage multiple: fixed for leverage transactions and variable for contract transactions. Delivery method: Leveraged trading is spot delivery, and contract trading can be physical or cash delivery. Risk management: Leveraged trading is affected by the leverage multiple, and contract trading is affected by many factors. Trading strategy: Leveraged trading is suitable for short-term operations, and contract trading is suitable for medium- and long-term transactions.

The difference between OKEx leverage trading and contract trading

Let’s get straight to the point: OKEx offers two derivatives trading products: leverage trading and contract trading. There are the following main differences between them:

1. Trading object
2. Leveraged trading: The trading object is spot assets, such as BTC, ETH and other cryptocurrencies.
3. Contract trading: The subject of the transaction is a contract, and the contract itself represents the value of the underlying asset.
4. Margin requirements
5. Leveraged trading: A certain percentage of margin is required, usually 5-100%.
6. Contract trading: Initial margin is required, the proportion of which depends on the selected contract type and leverage, which can be up to 125 times.
7. Leverage multiple
8. Leverage trading: The leverage multiple is fixed, usually 1-100 times.
9. Contract trading: Leverage multiples are variable and chosen by traders based on risk tolerance.
10. Delivery method
11. Leveraged trading: Delivery is a spot asset, and the asset is directly settled after the transaction is completed.
12. Contract trading: There are two delivery methods, including physical delivery and cash delivery. Physical delivery refers to delivery of the underlying asset, while cash delivery refers to settlement of the price difference in cash.
13. Risk Management
14. Leveraged Trading: Risk is affected by the leverage multiple. The higher the leverage multiple, the greater the risk.
15. Contract trading: The risk is not only affected by the leverage multiple, but also by market price fluctuations. Profit and loss are in the same direction as the position, and risks can be controlled through risk management tools such as stop-profit and stop-loss.
16. Trading Strategy
17. Leveraged Trading: Suitable for short-term operations, arbitrage and volatility trading.
18. Contract trading: suitable for medium and long-term trading, trend trading and hedging.

In short, OKEx leverage trading and contract trading are both derivatives trading products, but they have obvious differences in terms of trading objects, margin requirements, leverage multiples, delivery methods, risk management and trading strategies. Traders should choose appropriate trading products based on their risk tolerance, trading goals and strategies.

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