OKX cryptocurrency derivatives

One of the leading exchanges of 2019 is the OKX cryptocurrency derivatives trading platform. According to the reviews of users on the Internet, on this site it is possible to comfortably trade in cryptocurrencies (there are many currency pairs), as well as to work with fiat money, which is supported by the exchange. At the same time OKX allows trading in futures and securities, which makes it a multifunctional and promising trading platform for the entire digital market.

How does OKX Work?

Advanced charting tools, a variety of order types, margin and futures trading, and low commissions are all available on OKX. OKX is a cutting-edge cryptocurrency trading platform with a comprehensive set of specialized capabilities. 

By trade volume, it is one of the world's major exchanges. OKX crypto derivatives trading platform products include:

• Spot trading;
• Margin trading;
• Options;
• Perpetual swaps;
• Decentralized Finance (DeFi);
• Lending;
• Mining Pool.

OKX cryptocurrency derivatives trading

OKX makes it simple to buy cryptocurrencies directly from your bank account, debit card, credit card, or other payment options like Google Pay or Apple Pay. 

Basic and leveraged trading are available to OKX members. Even for simple OKX crypto derivatives trading, a large selection of complex order types, charts with analysis tools, and real-time order book access are accessible. Directly from the main page, you can access the basic trading page. Because the OKX derivatives trading platform is largely aimed towards professional investors and traders, it may take some time for beginners to get to grips with it.

OKX offers margin trading, options, and derivatives, as well as perpetual contracts with up to x125 leverage. A separate agreement must be accepted by the user in order to gain access to leveraged instruments.You can also open a demo account at OKX to familiarize yourself with the main features of the exchange and test strategies without the risk of losing your own money.

OKX derivatives trading platform commissions

OKX provides relatively low commissions for trading cryptocurrencies, but their structure can seem confusing. Due to the large number of trading opportunities on the exchange, there are a variety of commission collection conditions depending on the type of user transactions, the selected currency, the total volume of trades on the account, and the presence in the wallet of the OKB exchange's own token.

In general, OKX charges less than 0.10% for most transactions and about 1.5% for cryptocurrency purchases using traditional currencies. That's less than most other exchanges.

OKX Trading Fees

OKX charges commissions according to the maker-taker model. Discounts are available for users who trade large volumes and hold OKB.

A taker is a trader who executes an order at the market rate, i.e. he absorbs liquidity, therefore the commissions are higher for him. Maker places a limit order, i.e. he increases the liquidity of the order book, so more favorable conditions are provided for him.

For other trading directions the principle of commission calculation remains the same.

Staking on OKX

OKX provides the opportunity to earn interest payments by stacking more than 100 tokens. Each token has an annual return (APY) based on a fixed or flexible stacking period. For some assets, minimum requirements apply, for example you need to have at least 0.02 ETH to contribute ether to staking.

OKX Wallet

OKX offers its own cryptocurrency wallet, which can be downloaded as a separate app. OKX Wallet supports several dozen digital assets and integrates directly with the exchange.

Mining Pool OKX

Users of OKX can also mine their own cryptocurrency through their own mining pool. Bitcoin, Ethereum, and Litecoin are just a few of the cryptocurrencies that can be mined. There is also detailed instructions on how to join the pool and begin mining with OKX.

OKX Security

OKX ensures the safety of its consumers and their assets:

• The private keys for the exchange's wallets are broken down into many components and held in various countries.
• Cold storage. 95% of user assets on OKX are in cold storage, which has no permanent connection to the internet.
• Withdrawal password. Additionally, the user can set a password to confirm withdrawals.

Сryptocurrency derivatives

A derivative is a financial contract between two or more parties based on the future price of an underlying asset.

This type of financial contract is usually mentioned when we start discussing futures contracts for bitcoins and various altcoins. And it is logical, because derivative, in fact, is one of the oldest forms of financial contracts existing in the markets. They were first used by medieval merchants, who traveled all over Europe and regularly participated in periodic fairs (an early form of market development).

Derivatives have been substantially perfected throughout the ages, allowing them to become one of the most basic and widely used financial tools. In today's world, the phrase also refers to a variety of securities whose value is determined by the price of an underlying asset or benchmark. A contract is an agreement between two parties to sell or buy a specific asset at a specific price in the future. Changes or fluctuations in the price of the benchmark to which the contract is tied will decide the contract's value.

Derivatives are typically calculated using currencies (or cryptocurrencies), commodities, bonds, equities, market indexes, or interest rates as underlying assets. They can be traded on specialist exchanges or between two clients directly (C2C). And there are substantial distinctions between the two options, both in terms of how they are traded and regulated. Most traders, however, use both the first and second options, depending on the market circumstances.

What are the main forms of OKX crypto derivatives in New Zealand?

There are four main types - futures, forwards, swaps and options.

Why do traders need it?

Because derivatives can be used both for hedging risks and for speculating on changes in the price of the underlying asset.

But more often they are used for hedging, i.e. for protection against serious price fluctuations. A precisely-written contract that requires the execution of a deal at conditions that are strictly specified at the moment is an excellent protection from any changes. As for speculation, it is when traders try to predict how the price of an underlying asset will change over time and make it more profitable to buy or sell in the future. This is quite risky - it is no accident that the famous financier Warren Buffett once called derivatives "financial weapons of mass destruction," as he held them responsible for the global financial crisis of 2007-2008.

There are many ways to use this financial instrument in real life. 

For example, before the mentioned crisis, the largest U.S. holding company Berkshire Hathaway began selling put options on four major stock indices, including the S&P 500 and FTSE 100.

What is a put option? It is a form of derivative in which the new owner acquires the right, but not the obligation, to sell a certain underlying asset to the option seller at a certain price by a predetermined date. That is, numerous investors were given the opportunity right now to choose at what price to sell their shares in the future. And if the price of the shares had fallen by then, the investors would have won, because they would have been more than happy to sell them at the old - predetermined price. But if that price had gone up, the company would have received a net premium for the unexercised option, because no one would have been willing to sell the stock cheaper than the real market price. Berkshire Hathaway took a significant risk, but it was worth it, so the move brought the company a profit of $4.8 billion.

There is another interesting example of the use of derivatives in the aviation business. Airlines are very dependent on fuel, the cost of which fluctuates depending on oil prices and a number of other factors. Therefore, to avoid the negative impact of these fluctuations, derivatives are used for hedging. The example of Southwest Airlines, the largest U.S. low-cost carrier, which was able to effectively use this financial instrument, is well known. They managed to block the price of jet fuel at a time when the cost of oil was unusually low, so now the company pays 25-40 percent less than its competitors for refueling.

There are also examples of the use of such financial instruments that are not linked to traditional financial systems. For example, there is a whole segment of so-called "weather derivatives," which protect farmers and commodity suppliers from financial losses associated with extreme weather, such as frost, hurricanes and floods.

How to start OKX derivatives in New Zealand?

You need to register to start trading OKX cryptocurrency derivatives in New Zealand.

Registration: 

• Step 1: Create an account.

Login to the desktop application and select the option to create an account on the page that opens. Use your email or phone number to proceed with the registration. To complete the account creation, log in to the account using the confirmation code.

• Step 2: Choose settings.

Hover over the avatar icon and click "Settings." Select the options that are right for you: language, local currency, trend color and opening time.

Please verify your identity (KYC) on one or more levels: provide personal information (Level 1), verify your account by photo (Level 2), go through video verification (Level 3).

Try OKX, which prioritizes user security by employing cold storage with geographically distributed private keys, multi-signatures for hot wallets, and anti-phishing codes in emails.