Futures trading has become a cornerstone of modern digital asset investment, offering traders opportunities to profit from both rising and falling markets. On leading platforms like OKX, users can access two primary types of futures contracts: perpetual contracts and delivery contracts. These are further categorized by margin types—USDT-margined and coin-margined contracts—giving traders flexibility in strategy, risk management, and capital efficiency.
Understanding the differences between these instruments is crucial for making informed trading decisions. This guide breaks down everything you need to know about perpetual vs. delivery contracts, how to execute trades, and what margin options are available—all while optimizing for clarity, SEO relevance, and user engagement.
Understanding Futures Contract Basics
A futures contract is a standardized agreement to buy or sell a specific amount of an asset at a predetermined price on a set future date. In cryptocurrency trading, these contracts are offered by exchanges such as OKX and allow traders to speculate on price movements without owning the underlying asset.
There are two key classification criteria:
- By Margin Type: USDT-margined or coin-margined contracts
- By Expiration: Perpetual (no expiry) or delivery (with fixed settlement date)
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These combinations create distinct trading products tailored for different strategies—from short-term speculation to hedging long-term holdings.
Perpetual Contracts vs. Delivery Contracts: Key Differences
What Is a Perpetual Contract?
Perpetual contracts, often called "perps," do not have an expiration date. Traders can hold positions indefinitely, making them ideal for those who want flexibility in timing their exits.
To keep the contract price aligned with the spot market, funding rates are used. These periodic payments are exchanged between long and short positions:
- If more traders are long, funding rate is positive → longs pay shorts
- If more traders are short, funding rate is negative → shorts pay longs
This mechanism ensures price convergence and discourages prolonged deviation from the index price.
What Is a Delivery Contract?
Delivery contracts have a fixed settlement date—they expire and are automatically closed based on the average index price over the final hour before expiration.
Common expiration cycles include:
- Weekly (this week, next week)
- Quarterly (this quarter, next quarter)
Because these contracts settle at a known time, they’re often used for strategic hedging or directional bets with a defined timeline.
Unlike perpetuals, delivery contracts do not involve funding fees. Instead, traders rely on futures premium (basis) for arbitrage opportunities.
Margin Types: USDT-Margined vs. Coin-Margined Contracts
Your choice of margin affects how gains and losses are calculated and settled.
USDT-Margined Contracts
- Profits and losses (P&L) are denominated in stablecoin (USDT)
- Ideal for traders focused on dollar-denominated returns
- Easier to track performance due to stable valuation
- Suitable for multi-asset portfolios where stablecoin exposure is preferred
For example: A BTC/USDT perpetual contract allows you to trade Bitcoin’s price movement with USDT as collateral. Your P&L will be directly reflected in USDT.
Coin-Margined Contracts
- Margin and P&L are denominated in the underlying cryptocurrency
- Best for holders who want to avoid converting assets into stablecoins
- Often used for hedging spot holdings (e.g., shorting BTC with BTC as margin to hedge a long position)
Example: If you hold BTC and fear a short-term drop, you can open a BTC-margined short position. Any gains will be paid in BTC, preserving your crypto exposure.
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How to Start Trading Futures on OKX
Trading futures involves several steps—from account setup to placing your first order. Here’s a clear walkthrough.
Step 1: Set Up Your Account Mode
Before trading, ensure your account is configured correctly:
- Choose between single-collateral mode (one margin asset per position) or cross-margin mode (shared margin across positions)
- Activate futures trading in your account settings
This decision impacts leverage efficiency and liquidation risk.
Step 2: Transfer Funds
Move funds from your spot wallet to your futures trading account. You can use either USDT or the base cryptocurrency (like BTC or ETH), depending on the contract type.
No transfer is needed if you're already funded.
Step 3: Select Contract Type
On the trading interface:
- Click the dropdown next to any trading pair
- Search for your desired asset (e.g., BTC)
Under “Leveraged Trading,” choose:
- Perpetual → for endless holding
- Delivery → for time-bound contracts
- Select margin type: U-margined or coin-margined
You’ll now see the relevant order book and chart data.
Step 4: Place Your Order
Customize your trade:
- Set leverage (adjustable within allowed limits)
- Choose order type: limit, market, stop-limit, etc.
- Enter price and quantity
Click:
- Buy Open Long if you expect price to rise
- Sell Open Short if you anticipate a decline
Unfilled orders can be canceled manually.
Step 5: Manage Your Position
After execution:
- View key metrics: margin used, unrealized P&L, estimated liquidation price
- Set take-profit and stop-loss levels to automate exits
Close partially or fully via:
- Limit close
- Market close (instant execution)
Pro tip: Use conditional orders to protect profits during volatile swings.
Frequently Asked Questions (FAQ)
Q1: Which is better—perpetual or delivery contracts?
It depends on your strategy. Perpetuals suit short-to-medium-term traders who want flexibility. Delivery contracts are better for hedgers or those targeting specific market events with a known timeline.
Q2: Do I have to pay funding fees every time I trade?
Funding fees apply only to perpetual contracts and are charged every 8 hours. If you close your position before the next funding timestamp, you won’t pay or receive it.
Q3: Can I switch between USDT and coin-margined contracts?
Yes, but each is a separate product. You must transfer appropriate assets to the corresponding account and place trades independently.
Q4: What happens when a delivery contract expires?
The exchange automatically settles open positions using the average index price over the last hour. There's no manual action required unless you close early.
Q5: How is profit calculated in coin-margined contracts?
Profit = (1 / Entry Price − 1 / Exit Price) × Position Size
For longs: higher exit = profit
For shorts: lower exit = profit
All values are in the base coin (e.g., BTC).
Q6: Is futures trading suitable for beginners?
While powerful, futures carry high risk due to leverage. Beginners should start with small sizes, use stop-losses, and practice on demo accounts before going live.
Final Thoughts: Choosing the Right Contract for Your Goals
Whether you're hedging a crypto portfolio, speculating on volatility, or aiming to profit from bear markets, understanding the nuances between delivery and perpetual contracts—and how margin types affect outcomes—is essential.
USDT-margined perpetuals offer simplicity and stable valuation, ideal for new traders. Coin-margined delivery contracts appeal to experienced users managing complex exposures.
With intuitive interfaces and robust risk controls, platforms like OKX empower users to navigate these instruments safely and effectively.
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