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The price at which an investor buys or sells an option.
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This article may contain product-related content that does not apply to your region. This article is intended to provide general information only and does not accept responsibility for any factual errors or omissions. The views expressed herein represent the author's own perspective and do not represent the views of OKX. This article is not intended to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins) carries a high level of risk, may be subject to significant price fluctuations, and may even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For questions specific to your circumstances, please consult your legal/tax/investment professional. The information contained in this article (including market data and statistical information, where applicable) is provided for general reference purposes only. Although all reasonable precautions have been taken in preparing such data and charts, we accept no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or fewer may be used, provided that such use is non-commercial in nature. Any reproduction or distribution of the full article must be accompanied by the following notice: "This article is copyrighted © 2025 OKX, used under permission." Permitted excerpts must cite the article title and include attribution, for example: "Article title, [author name (if applicable)], © 2025 OKX". Some content may have been generated or assisted by artificial intelligence (AI) tools. Derivative works and other uses of this article are not permitted.
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Maker / Taker
Maker refers to an operation that provides liquidity to the market in order book trading. Taker refers to an operation that extracts liquidity from the market in order book trading. Since makers and takers have opposite effects on market liquidity, most trading platforms impose different fee structures for maker and taker trades. Generally, maker fee rates are lower than taker fee rates. Click View
December 30, 2024
Quote Currency / Settlement Currency
In spot trading, transactions are generally conducted between one digital asset and another. Using the ETH/BTC pair as an example, ETH is the "quote currency" and BTC is the "settlement currency." OKX currently has three trading zones: USDⓈ Trading Zone, USDT Trading Zone, and CRYPTO Trading Zone.
December 30, 2024
Margin Ratio
What is the Margin Ratio? The margin ratio is a key indicator used to assess an account's risk status, widely applied in leverage, options, and perpetual contracts trading. It determines whether an account can sustain its current positions and helps traders reduce the risk of liquidation. If the margin ratio falls below the threshold set by the platform, a liquidation mechanism may be triggered to protect both the trader and the platform's assets. Margin ratio calculation Formula: Margin Ratio = (Cross-margin Balance of the Asset + Cross-margin P&L)
December 30, 2024
Funding Fee
To ensure that the perpetual contract price reflects the underlying market movements, exchanges have established a funding fee mechanism. This mechanism facilitates periodic cash exchanges between long and short position holders, causing the perpetual contract price to converge toward the index price. When the funding rate is positive, long position holders pay funding fees to short position holders; conversely, when the funding rate is negative, short position holders pay funding fees to long position holders. Note that the platform only facilitates the transfer of funds between long and short positions
August 5, 2024
Slippage
Slippage generally refers to the difference between the actual execution price and the intended price, which typically moves in a direction unfavorable to the trader, resulting in additional losses. It mainly occurs during entry and stop-loss operations, and does not occur when exiting a profitable position. When prices rise rapidly, investors want to enter promptly to follow the market direction on the long side, causing many orders to crowd into the long direction, while counterparties are reluctant to sell and will not easily go short or
April 25, 2024
Options Contracts
Simplified Trading / Pro Trading Options are a right that can be exercised at a future time. After purchasing an option, if exercising the right is favorable for the buyer on the expiry date, the buyer will receive corresponding proceeds through exercise, and the seller must make corresponding payments to accommodate the buyer's exercise. If exercising the right is unfavorable for the buyer on the expiry date, the buyer may choose not to exercise, and the seller is not required to make corresponding payments. OKX offers options contracts with Bitcoin (BTC) and Ethereum (ETH) as underlying assets.
April 25, 2024
