How to lock position in okex contract

Lock-up refers to holding long and short positions in futures trading so that profits and losses offset each other, forming a state of locked-in profits and losses. OKEx contract lock-up rules include: long and short positions of the same variety and the same contract; profits and losses are calculated based on the average transaction price; positions can be partially or fully closed. The advantages of locking positions include controlling risks, ensuring profits and strategic operations. However, you need to pay attention to transaction costs, capital occupation and market changes. Contract locks on OKEx can be released by partial or full liquidation.

Introduction to OKEx contract lock-up

What is lock-up?

Lock position means that in futures trading, traders hold long and short positions at the same time, causing the profits and losses of the two orders to offset each other, forming a locked-in profit and loss state.

OKEx contract hedging rules

OKEx contract hedging follows the following rules:

• Only long and shortpositions under the same variety and the same contract are allowed to be locked.
• After locking the position, the profit and loss of the two positions will be calculated based on the weighted average price of the transaction and will no longer be affected by market price changes.
• Locked positions can be partially or completely closed. After closing some positions, the lock-up status will be lifted and the remaining positions will resume normal trading.

Advantages of locking

• Control risks: Locking effectively controls risks because the profits and losses of the long and short positions offset each other, reducing transaction risks.
• Ensure Profit: Traders can ensure profits by locking positions when they anticipate a market reversal.
• Strategic operation: Lock position can be used as a strategic operation. For example, when the market trend is unclear, locking the position can protect profits or prevent losses from expanding.

Notes on lock-up

• Transaction costs: Lock-up requires payment of opening fee and closing fee.
• Capital occupation: Lock position occupies funds, and the margin of long and short positions is frozen.
• Market changes: Although locking a position can control risks, drastic market changes may still lead to losses on locked positions.

How to Unlock

Contract lock on OKEx can be released in the following ways:

• Partial Liquidation: Close a part of the longor shortposition until the lock status is released.
• Close all positions: Close all longand shortpositions and completely release the locked position.

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