Exchange Review: OKEx
OKEx is a Hong Kong digital asset exchange, providing advanced financial services to traders through the efficiency, security, and strength of blockchain technology. In addition to their trading platform, OKEx also offers a mobile consumer payment and lending app. The exchange has strong liquidity with regards to CNY/BTC pairs.
OKEx Exchange Analysis
OKEx delivers hundreds of token & futures trading pairs to help traders to optimize their strategy. With investment support from leading enterprises such as VenturesLab (co-founded by Tim Draper), Ceyuan Ventures, Giant Network Group, and many others, their solid foundation has drawn experts in technology and business from the world’s top organizations, allowing safe, stable and reliable trading services through internet and mobile solutions.
As referenced on the OKEx site, BTC futures trading has accumulated nearly $1.5B of volume daily and is recognized as the gold standard for the industry. OKEx aims to eliminate the barriers in bitcoin trading with its leading blockchain developments, increase transaction efficiency, and help to improve client experience further.
OKEx offers more than 400 trading pairs most of which are against the most well-known Bitcoin, Ethereum, or USDT. Moreover, OKEx provides own token called “OKB” in April 2018 and features many sophisticated instruments for more experienced traders such as margin trading and futures trading.
With a reported 20 million global users and $1.7 billion daily volume, OKEx has been recognized by “Live Coin Watch to be one the worlds most prominent trading exchanges for digital assets.
Where OKEX eloquently distinguishes itself from other trading exchanges is through its focus on Bitcoin and Litecoin futures. To support this, conventional trading methods on their platform only allow users to achieve 3x profit, while trading futures can support up to a 20x profit margin.
With regards to the overall flow and usability, OKEx accommodates both iOS and Android devices. From my experience, this standalone cryptocurrency exchange provides its users with an excellent and easy-to-follow platform that provides multiple monitor support and is systematically secured with bank-level SSL encryption.
OKEx ultimately allows for an excellent opportunity for professionals to dive into the world of futures contracts with minimal fees, high-security, and high liquidity.
So, what are futures contracts? Moreover, how do you trade them?
In traditional finance, a futures contract can function as a standardized forward contract, or a legal agreement to buy or sell something at a predetermined price, and at a specified time in the future. The asset transacted is usually a commodity, currency or index-- or financial instrument.
To provide more of a concrete example; if someone purchases a "July Bitcoin futures contract," what they're stating is that they will buy a set amount of BTC from the seller at the price in July which, in this case, will also function as the expiration date. Within this transaction, the seller will also agree to sell a set amount of BTC at the agreed upon price.
What’s prominent to note is that a majority of the time, investors do not ask for physical delivery or transfer of the commodities traded. Instead, before the contract expires, which is also prior to the delivery day, investors will close the position to profit from the price difference.
How to Trade Futures Contracts?
Trading on OKEX is largely dependant on BTC’s price movement; traders may choose to open a long or short position, and set several alternative expiration dates. As referenced on their website, OKEx currently supports a combination of weekly, fortnightly and quarterly contracts.
- "Weekly contracts will be settled on the imminent Friday.
- Fortnightly contracts will be settled on next Friday.
- Quarterly contracts will be settled on the last Friday of March, June, September, and December."
Traders will have to enter the quantity and price to place an order. When creating an order, the margin required is the value of the filled contract in BTC equivalent divided by the leverage multiplier. The order can only be placed when the account equity balance is larger than or equal to the margin.
When creating a new futures account, traders will have to choose the margin mode beforehand. Different margin modes have different margin formulae and risk management systems. Traders may also switch the margin mode if they don’t have any open position and/ or orders.
In the context of a cross-margin mode, the risks and profits of all holding positions will be shared collectively between buyer and seller. The minimum margin ratio for opening a 10x leverage position is 90%; the minimum margin ratio for opening a 20x leverage position is 80%.
Regarding fixed-margin modes, the margins and profits of each position will be isolated. Traders can only open a position when the equity balance is larger than the initial margin. However, the initial margin for each contract might be different.
Once the order is filled, traders will hold the respective positions (long or short). In a cross-margin mode, the equity balance of futures account has to be larger than 10% of the holding positions for 10x leverage contracts; 20% for 20x leverage contracts. In a fixed-margin mode, the UPL varies based on the latest market price, but the margin remains the same as the initial margin. Once the margin ratio drops to or below 0%, the OKEx system will take over and force-liquidate the position(s).
Traders also have the option of creating a more open or closed position(s) at any time to help maximize their profit and reduce loss.
On the day of delivery, all opened positions will be closed at market price(USD). The profit/loss will be trnsferred to the futures account under "Realized profit & loss."After the settlement, all realized profit and loss will be transferred to the equity balance.
Following on from this, the contract will end and new deals will subsequently be launched.
- OK, Blockchain Capital: OKEx has a variety of different components regarding their exchange including an internal blockchain capital program. Prominent aspects of this include a world-class team of professionals with expertise in technology, investment, marketing, and operations. OKEx blockchain capital works to provide tailored professional consultation services, advising on how to apply the power of blockchain technology, according to existing products, businesses, or services. As referenced on their site, OK Group has invested more than 100 million US dollars to establish a start-up incubator styled fund which works closely with top digital asset funds and helps raise capital for potential blockchain projects.
is a global utility token issued by OK Blockchain Foundation. It is a token economy system designed and launched by our world-class development team based on blockchain technology. OKB is set to connect prospective digital asset projects to OKEx users as well as professional investors, creating an OKEx ecosystem that helps to advance the development of blockchain technology and the digital asset industry. OKB is mostly a global utility token issued by OK Blockchain foundation. As referenced on the OKEx site, the total available supply of OKB will be one billion tokens (1,000,000,000), with the following distribution procedure:
- 60% (600 million) of OKB supply will be distributed out to OKEx clients and users to aid in community engagement and marketing campaigns. OKEx aims to build a fair, balanced community that equally values and distributes rights so everyone can have the opportunity to participate in their platform's development.
- 10% (100 million) of the supply will be used for the operations of the foundation and will be locked for three years.
- 10% (100 million) to initial investors. Locked up for two years.
- 20% (200 million) for OKEx’s development team. Initial lockup of 1 year, then 20 million OKB unlocked annually.
OK Partner Exchange
To help crystalize global development and accelerate the rapid expansion of OKEx, the team actively seeks out influential global partners who have access to reliable, high-quality networks and resources around the world. There are five exclusive privileges for their global partners including: - Official accreditation as OKEx global partner. - Priority access for global events. - Priority access and involvement for new products.
The KPI and responsibilities to become an OKEx partner include: - Helping to promote their beliefs and business throughout the world. - Helping to strengthen customer service and improve products. - Help build teams and discover potential users. - Help encourage ethical and moral trading. - A purchase of 5000 OKB. - Extensive Management And Operation Experience - The Ability To Develop Regional Business
Irregardless of your trading experience (although an intermediate level is recommended), OKEx provides an excellent opportunity for enthusiasts or professionals to dive into the world of futures contracts with minimal fees, highly secure cold storage for digital assets, and high liquidity considering their growing global user base of over 20 million traders. Should you have any concerns or queries, OKEx has a 24/7 live chat support dedicated to helping people solve problems in the most effective and friendly manner.