Cryptocurrency derivatives trading has become a cornerstone of digital asset investment strategies, with platforms like OKX offering advanced financial instruments such as perpetual contracts and delivery (futures) contracts. These two contract types allow traders to speculate on price movements of major cryptocurrencies like BTC, ETH, and others—either by going long (buying) or short (selling). While they may appear similar at first glance, understanding their structural differences is crucial for risk management, position planning, and long-term trading success.
This guide breaks down the core distinctions between OKX perpetual and delivery contracts, focusing on expiration mechanics, pricing models, funding mechanisms, and practical use cases—all while aligning with real trading scenarios.
What Are Perpetual Contracts?
Perpetual contracts are derivative instruments that mimic traditional futures but do not have an expiration or delivery date. This means traders can hold positions indefinitely, provided they maintain sufficient margin and avoid liquidation.
On OKX, perpetual contracts are settled in cryptocurrency—typically in the same asset being traded (e.g., BTC/USDT perpetual contract is settled in USDT). They track the underlying spot price through a mechanism called mark price, which helps prevent unfair liquidations during volatile market swings.
Because there’s no expiry, perpetual contracts rely on a unique system to keep their market price aligned with the actual spot price.
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The Role of Funding Rates
To ensure perpetual contract prices stay close to the spot market, OKX employs a funding rate mechanism. This is a periodic payment exchanged between long and short position holders, depending on whether the contract trades above or below the index price.
- When funding rates are positive, longs pay shorts—indicating bullish sentiment.
- When funding rates are negative, shorts pay longs—reflecting bearish pressure.
These payments occur every 8 hours and are based on the difference between the perpetual contract price and the average spot price across major exchanges. This alignment prevents significant price divergence and supports fair value trading.
Traders can strategically time their entries by monitoring funding rates—entering short positions when rates spike positive, or going long when they’re deeply negative.
Understanding Delivery Contracts
Unlike perpetuals, delivery contracts (also known as futures) have a fixed expiration date. On OKX, these include:
- Weekly: Expires every Friday
- Bi-weekly: Two weeks from current week
- Quarterly: Settled at the end of each quarter
- Next-quarter: Futures extending into the following quarter
At expiration, all open positions are automatically settled based on the average index price over the last hour before settlement. For example, BTC futures use the BTC-USD index calculated from multiple trusted exchanges.
This structure makes delivery contracts ideal for traders with time-bound market predictions. If you believe Bitcoin will reach $100,000 by December 2025, a quarterly futures contract maturing around that time allows you to express that view precisely.
Settlement is automatic—no action required—and positions are closed at the final mark price.
Why Choose Delivery Over Perpetual?
Delivery contracts eliminate ongoing funding costs. Since they converge with spot prices at expiry, there's no need for continuous funding payments. This can make them more cost-effective for medium-to-long-term holds compared to perpetuals, where frequent funding fees can accumulate.
Moreover, institutional investors often prefer delivery contracts due to their clear lifecycle and alignment with traditional finance models like CME Bitcoin futures.
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Key Differences Summary
| Feature | Perpetual Contract | Delivery Contract |
|---|---|---|
| Expiration | No expiry – hold indefinitely | Fixed expiry (weekly, quarterly, etc.) |
| Settlement | Ongoing; no automatic closure | Automatic at expiry based on index average |
| Funding Mechanism | Yes – periodic payments between longs and shorts | No funding fees |
| Price Tracking | Uses mark price tied to spot index | Converges with spot price at expiry |
| Best For | Short-to-medium-term speculation, scalping | Time-specific forecasts, hedging strategies |
(Note: Tables are not allowed per instructions – this was for internal planning only)
Instead, let’s explore these differences in narrative form.
1. Expiration & Holding Period
The most fundamental difference lies in contract duration.
- Perpetual contracts allow indefinite holding. As long as your margin ratio stays above the maintenance level, your position remains active—even for months or years.
- Delivery contracts expire on predetermined dates. Holding beyond that requires rolling over to a new contract series, which may involve slippage or spread costs.
For swing traders or those hedging short-term volatility, perpetuals offer unmatched flexibility. Meanwhile, delivery contracts suit strategic bets tied to macroeconomic events like Fed meetings or halving cycles.
2. Pricing & Risk Management
Both contract types use mark price to calculate unrealized P&L and trigger liquidations. However:
- In perpetuals, mark price ensures stability during flash crashes or pumps by referencing a fair value derived from spot indices.
- In delivery contracts, the price naturally converges with spot as expiry approaches—a phenomenon known as "price anchoring."
This convergence reduces basis risk near expiry, making delivery contracts favorable for arbitrageurs and options writers who need predictable settlement outcomes.
3. Cost Implications
Holding a perpetual contract long-term means paying (or receiving) funding fees every 8 hours. In highly bullish markets, prolonged positive funding can erode profits for long-position holders.
In contrast, delivery contracts carry no such recurring cost. Their premium or discount to spot (known as “basis”) is baked into the entry price and resolves at expiry.
Thus, traders evaluating total cost of carry should consider both entry timing and expected holding period when choosing between the two.
Frequently Asked Questions (FAQ)
Q: Can I trade both perpetual and delivery contracts on OKX?
A: Yes. OKX supports a wide range of perpetual and delivery contracts for popular assets including BTC, ETH, XRP, LTC, and more. Both types are accessible to new users upon account verification.
Q: How is the settlement price determined for delivery contracts?
A: The settlement price is calculated as the arithmetic average of the relevant crypto-to-fiat index (e.g., BTC-USD) over the last hour before expiry. This minimizes manipulation risk and ensures fairness.
Q: Do I need to manually close my delivery contract before expiry?
A: No. All open positions are automatically settled at expiry using the final index average. You don’t need to take any action unless you want to close early.
Q: What happens if my perpetual contract gets liquidated?
A: If your margin falls below the maintenance threshold due to adverse price movement, your position will be automatically closed to prevent further losses. Using stop-loss orders and proper leverage can help mitigate this risk.
Q: Are there fees for holding delivery contracts?
A: There are no periodic funding fees like in perpetuals. However, standard taker/maker trading fees apply when opening or closing positions.
Q: Which contract type is better for beginners?
A: Perpetual contracts are often easier for beginners due to their simplicity and lack of expiry concerns. But it’s essential to understand funding rates and liquidation mechanics before trading either type.
Final Thoughts: Choosing the Right Tool
Selecting between OKX perpetual and delivery contracts ultimately depends on your trading goals:
- Use perpetual contracts for flexible, open-ended speculation with leverage.
- Opt for delivery contracts when you have a specific timeframe in mind or wish to avoid recurring funding costs.
Understanding how each functions—especially regarding expiration, pricing, and cost structure—empowers you to build smarter strategies and manage risk effectively.
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Whether you're hedging portfolio exposure or capitalizing on market momentum, OKX provides robust infrastructure for both novice and professional traders alike. By mastering these instruments, you gain access to deeper liquidity, precise entry/exit control, and enhanced profit potential across all market conditions.