Activation of pre-commitment trading for 1,000 OKEx users

Commitment Trading on OKEx: A Simple Guide with Examples

OKEx Exchange has introduced a new feature called Commitment Trading, allowing 1,000 users to trade on the escrow market. This feature is designed for both professional and amateur traders to profit from market trends. Below, we'll explain commitment trading in simple terms, how it works, and provide examples to help you understand it better.

What is Commitment Trading?

Commitment trading is a type of futures trading where traders can speculate on the price movement of cryptocurrencies. It allows you to trade with leverage, meaning you can borrow funds to increase your potential profits (or losses). On OKEx, professional traders can earn up to 25 times more profit than traditional trading by using this feature.

How Does Commitment Trading Work?

Leverage: You can trade with leverage, which amplifies your potential profits (and risks). For example, with 5x leverage, a $100 investment can control a $500 position.

Long and Short Positions: You can trade in both bullish (long) and bearish (short) markets:

Long: Buy a cryptocurrency expecting its price to rise.

Short: Sell a cryptocurrency expecting its price to drop.

Escrow Market: The funds are held securely in an escrow system during the trade to ensure fairness.

How to Start Commitment Trading on OKEx

Here’s a step-by-step guide to trading on OKEx:

1. Register and Verify

Go to the OKEx website and create an account.

Complete the Know Your Customer (KYC) verification process to unlock advanced features.

2. Deposit Funds

Deposit cryptocurrencies like BTC, ETH, or USDT into your OKEx account.

3. Choose a Trading Pair

Select the cryptocurrency pair you want to trade, such as BTC/USDT.

4. Set Leverage

Decide how much leverage you want to use (e.g., 5x, 10x, or 25x).

5. Place an Order

Open a long position if you think the price will rise or a short position if you think it will drop.

6. Monitor and Close Your Position

Keep an eye on the market and close your position when you reach your profit target or stop-loss level.

Examples to Understand Commitment Trading

Example 1: Long Position (Bullish Market)

You expect the price of BTC to rise.

You deposit $100 and use 5x leverage, giving you a $500 position.

If BTC increases by 2%, your profit is $10 (2% of $500).

Without leverage, your profit would have been $2 (2% of $100), so the leverage gives you 5 times more profit.

Example 2: Short Position (Bearish Market)

You expect the price of ETH to drop.

You deposit $200 and use 10x leverage, giving you a $2,000 position.

If ETH decreases by 1%, your profit is $20 (1% of $2,000).

Without leverage, your profit would have been $2 (1% of $200), so the leverage gives you 10 times more profit.

Key Things to Consider

Risk Management: Leverage increases both profits and losses. Always use stop-loss orders to limit potential losses.

Liquidation Risk: If your position drops below a certain threshold, it may be liquidated to prevent further losses.

Market Volatility: Cryptocurrency markets are highly volatile, so stay updated on market trends.

Conclusion

Commitment trading on OKEx is a powerful tool for traders to maximize profits in both rising and falling markets. By using leverage and following the steps above, you can start trading like a professional. Remember to always manage your risks and stay informed. Happy trading!