Perpetual Swaps on OKX: What It Is, How It Works, and What to Know
Perpetual Swaps - or Perps, are a type of derivative that lets you trade on the future price direction of crypto assets without owning them and without any expiry date. Think of it like making a call on where the market is headed, up or down, and profiting from that move when you close the trade.
Unlike traditional futures contracts, Perpetual Swaps don’t expire. That means you can:
Hold your position as long as you want
Set your own target to close in profit or cut losses
Trade both directions: long or short
Use up to 50× leverage, depending on the pair
It’s a flexible, high-precision way to express your market view, whether you're riding a trend or hedging risk.
How It Works:
Let’s say you believe BTC/USDT will rise. You can go long on BTC Perpetual, and profit if the price goes up. If you think it's going to drop, you can go short and profit as it falls. You don’t need to own BTC. You’re simply trading on the price movement.
Key Features:
No expiry: Stay in the trade as long as you like
Leverage: Control a larger position of up to 50x, with a smaller initial margin
Instant control: Close your trade any time.
Funding fees: Longs and shorts pay or receive funding periodically to keep perp prices aligned with the spot market
Understanding margin and liquidation
When you open a perpetual swaps position, you don't need to put up the full value of the trade. Instead, you deposit a smaller amount called "margin" as collateral. This is what makes leveraged trading possible: $1,000 of margin at 10x leverage lets you open a $10,000 position.
How margin works
Only funds in your trading account count as margin. Assets held in your funding or Earn account cannot be used as collateral. Make sure your trading account is funded before and during an open position. When trading derivatives on OKX, your maximum loss is limited to the funds in your trading account.
Initial margin is the minimum amount required to open a position. The higher the leverage, the less margin you need upfront, but the less room your position has to move against you before liquidation occurs.
Maintenance margin is the minimum amount you need to keep your position open. You can track your maintenance margin ratio (MMR) in the trading interface. If MMR falls to 100% or below, liquidation is triggered.
What is liquidation?
If the market moves against your position and your MMR falls to 100% or below, OKX will automatically close part or all of your position. This happens at the prevailing market price, which means the final closing price for your position may differ from what you expect.Liquidation can happen quickly in volatile markets. You will not receive a grace period.
Managing your risk
Set liquidation alerts to get notified when your MMR approaches 100%, and check your MMR regularly, especially in volatile markets. This gives you time to add margin or reduce your position to avoid liquidation.
Set stop-loss orders before entering a trade to limit your downside
Use lower leverage if you're new to derivatives - a smaller position size gives you more margin buffer
Derivatives trading carries significant risk. You can lose all of your collateral. Trade carefully and consider your risk tolerance when sizing your positions.
Perpetual Swaps trading is available to OKX Singapore users who complete a suitability quiz. Take the quiz now, and gain access to Perpetual Swaps.
Note: Payment token derivatives and other services (including margin borrowing and structured products) are provided by OKX Financial and are unregulated. OKX Financial is not licensed in any jurisdiction. See OKX Financial Terms of Service and Risk Disclosure.
