Perpetual trading has emerged as one of the most popular ways for cryptocurrency traders to gain exposure to price movements without owning the underlying asset. With features like leverage, no expiry dates, and advanced order types, it offers flexibility and strategic depth for both new and experienced traders. This guide walks you through everything you need to know about perpetual trading, how to access it via integrated platforms, and best practices for managing risk and maximizing opportunities.
What Is Perpetual Trading?
Perpetual trading refers to a type of cryptocurrency derivative contract that allows traders to speculate on the future price of digital assets—such as Bitcoin or Ethereum—without an expiration date. Unlike traditional futures contracts, which settle on a specific date, perpetual contracts can be held indefinitely as long as the trader maintains sufficient margin.
Traders can take either long positions (betting the price will rise) or short positions (betting the price will fall), often using leverage to amplify potential returns. However, leverage also increases risk, especially the possibility of liquidation if the market moves against the position.
These contracts are typically settled in stablecoins or the base cryptocurrency and use a mechanism called funding rates to keep the contract price aligned with the spot market.
Key benefits include:
- No expiry, enabling long-term positioning
- High liquidity on major trading platforms
- Access to deep markets with tight spreads
- Support for advanced risk management tools like stop-loss and take-profit
How to Access Perpetual Trading
While some platforms offer perpetual trading directly, others integrate with leading exchanges to provide seamless access. One common setup involves linking your wallet to a third-party exchange—such as OKX—through a unified interface.
To begin perpetual trading within such ecosystems:
- Navigate to the homepage and look for a dedicated banner or section labeled "Perpetual."
- Alternatively, tap the "Trade" tab at the bottom of the screen and switch from "Spot" to "Perp" mode.
- You may also find a direct "Perpetual" icon at the top of the main dashboard.
Once inside, you’ll gain access to real-time charts, order books, and trading tools designed for fast execution and precise control.
Setting Up Your Trading Account
Before placing any trades, you must first link or open a supported trading account. In many cases, this means creating an account with a partnered exchange like OKX.
How to Open an OKX Trading Account
- Go to the "WALLET" tab at the bottom of the app.
- Look for an option labeled "Open" under external trading accounts.
- Follow the prompts to complete identity verification and answer eligibility questions.
- Carefully read and accept the Broker Trading Product Agreement and associated Risk Warnings.
After confirmation, your account will be activated, allowing you to transfer funds and start trading immediately.
This integration enables users to manage their spot wallet and derivatives positions from a single interface while benefiting from the security and liquidity of a top-tier exchange.
Funding Your Trading Account
To trade perpetual contracts, you need to transfer assets into your derivatives wallet.
Transfer Methods
There are two primary ways to fund your OKX trading account:
- Via Wallet Tab:
Go to “WALLET,” select “OKX Wallet,” then choose Deposit (to send funds from Matrixport) or Withdraw (to return funds). - Directly from Perpetual Trading Page:
Click the "Transfer" button, choose direction (in/out), select currency (e.g., USDT), enter amount, review fees, agree to terms, and confirm.
On-Chain vs Accelerated Transfers
| Transfer Type | Speed | Fee Type |
|---|---|---|
| Standard On-Chain | 3 min – several hours | Network gas fee applies |
| Accelerated Service | ~15 seconds | Capital cost-based fee |
Note: During promotional periods, accelerated transfers may be free.
The acceleration fee is calculated as:
(Transfer Amount – Transfer Fee) × Acceleration Fee Rate
Even if acceleration fails, your original transfer continues unaffected. Failed attempts incur no charge.
You can monitor all transfers under Transfer History.
Executing Your First Trade
Now that your account is funded, it’s time to place a trade.
Step 1: Choose a Contract
Browse available markets and select the perpetual contract you want to trade—such as BTC/USDT or ETH/USDT. Most platforms display key metrics like funding rate, 24h volume, and price trends.
Step 2: Set Margin Mode and Leverage
Choose between:
- Cross Margin: Uses entire balance to avoid liquidation
- Isolated Margin: Limits risk to allocated margin only
Adjust leverage using "+" / "-" buttons or by entering a multiplier manually. Higher leverage increases both profit potential and liquidation risk.
Step 3: Place an Order
Select:
- Buy (Long) or Sell (Short)
Order Type:
- Limit Order: Execute at a specified price
- Market Order: Execute immediately at current price
- Enter price and quantity
Step 4: Use Advanced Order Features
Enable:
- Reduce-Only: Ensures the order only reduces existing positions; prevents accidental increases.
- Take-Profit (TP) / Stop-Loss (SL): Automatically closes part or all of a position when prices hit predefined levels. You can set triggers based on last traded price, index price, or mark price.
These tools are essential for disciplined risk management and removing emotional decision-making from trading.
Managing Active Positions
Once your order is filled, it appears under the "Positions" tab.
Here you can view:
- Current margin
- Unrealized Profit & Loss (PnL)
- Return on Equity (ROE)
- Estimated liquidation price
- Funding payments
From this screen, you can:
- Adjust leverage
- Modify or add TP/SL orders
- Close position manually by entering price and size
- Use “Close All” to exit all open positions instantly at market price
You can also track pending orders under the "Orders" tab, where unfilled trades can be canceled at any time.
Historical and open orders (excluding canceled ones) are accessible via the clock icon in the top-right corner.
Frequently Asked Questions (FAQ)
Q: What happens if my position gets liquidated?
A: If your equity drops below the maintenance margin level, the system will automatically close your position to prevent further losses. It's crucial to monitor your estimated liquidation price and maintain adequate buffer margins.
Q: Can I change my margin mode after opening a position?
A: Yes, you can switch between cross and isolated margin modes at any time, but changes apply only to new positions unless modified individually.
Q: Are there fees for opening or closing perpetual trades?
A: Yes, trading fees apply per executed order. These vary by tier and volume—check your current fee level in the trading interface.
Q: How often is funding paid or collected?
A: Funding occurs every 8 hours (at 04:00, 12:00, and 20:00 UTC). If you hold a long position, you pay funding; shorts receive it—or vice versa depending on market conditions.
Q: Is there a minimum trade size?
A: Yes, each contract has a minimum notional value or quantity requirement (e.g., 1 USDT worth of BTC). Check contract specifications before placing small orders.
Q: Can I trade perpetuals 24/7?
A: Yes, crypto perpetual markets operate around the clock, making them ideal for global traders across time zones.
Final Tips for Successful Perpetual Trading
- Start with low leverage until you understand volatility patterns.
- Always use stop-loss orders—even experienced traders rely on them.
- Monitor funding rates; consistently high positive rates suggest over-leveraged longs.
- Avoid holding positions over extended periods without reviewing risk exposure.
- Keep part of your balance in stablecoins for quick margin top-ups.
By combining technical analysis with sound risk management, perpetual trading can become a powerful tool in your investment arsenal. Whether you're hedging spot holdings or speculating on short-term moves, understanding the mechanics gives you a clear edge in fast-moving crypto markets.