To optimize the trading experience and reduce costs for its users, OKX has announced an important update regarding the minimum order quantity for select perpetual and futures contracts. This guide provides a comprehensive overview of the changes, their implications, and practical information for traders.
Summary of the Key Adjustments
The adjustment is scheduled to take place between 2:00 PM and 4:00 PM (UTC+8) on April 18, 2024. During this maintenance window, the minimum order size and the order size increment (tick size) for the specified instruments will be updated.
The primary changes are detailed below:
| Instrument Type | Trading Pair | Previous Minimum (Contracts) | New Minimum (Contracts) |
|---|---|---|---|
| Perpetual | ETH/USDT | 1 | 0.1 |
| Futures (Expiry) | ETH/USDT | 1 | 0.1 |
This update is designed to offer traders greater flexibility and precision in order placement.
Key Concepts: Order Size Precision and Minimum Order Quantity
To fully benefit from this update, it's crucial to understand two core concepts.
What is Order Size Precision?
Order size precision refers to the smallest allowable increment by which you can change the size of your order. It defines the granularity of your trade entries and exits.
- Example: For the ETH/USDT perpetual contract, where each contract represents 0.1 ETH, an order size precision of 0.1 contracts means you can adjust your order in steps of 0.01 ETH.
What is Minimum Order Quantity?
The minimum order quantity is the smallest number of contracts you are permitted to buy or sell in a single order. This value is always an integer multiple of the order size precision.
- Example: Previously, the minimum for ETH/USDT was 1 contract (0.1 ETH). After the change, the minimum will be 0.1 contracts (0.01 ETH). You can then place orders for 0.1, 0.2, 0.3 contracts, and so on.
How Positions and Open Orders Are Displayed
Following the adjustment, the platform will support the display of fractional contract amounts for both open positions and active orders. This applies to all order states, including unfilled, partially filled, and fully filled orders, as well as existing holdings.
- Illustration: Imagine a SHIB/USDT contract where 1 contract equals 1,000,000 SHIB. If an open order was for 10 contracts, after the precision is adjusted to 0.1, it could be displayed as 10.5 contracts (10,500,000 SHIB). Similarly, a holding could be shown as 1.5 contracts.
- This rule applies uniformly to all users, including those utilizing APIs, automated strategies, and copy trading services.
New Rules for Placing and Amending Orders
For any new order or an amendment to an existing order, the quantity must adhere to two rules:
- It must be an integer multiple of the new order size precision.
- It must be greater than or equal to the new minimum order quantity.
- Example: Using the SHIB/USDT example again, if the minimum and precision are both adjusted to 0.1 contracts, you could place an order for 0.1, 0.2, or 1.7 contracts (as these are multiples of 0.1). An order for 0.15 contracts would be invalid.
- These rules are also mandatory for all trading activities conducted via API, trading bots, and copy trading systems. To stay ahead of the curve with advanced tools, you can explore more trading strategies.
Important Notes for API Users
The API and WebSocket data channels will be updated to reflect these new parameters. The lotSz (order size precision) and minSz (minimum order size) fields returned by these interfaces will contain the new values after the update goes live.
API users must ensure their systems and trading algorithms are reconfigured to comply with the new precision and minimum size requirements to avoid any errors in order placement post-update.
Frequently Asked Questions
Q1: Will this update affect my existing positions or open orders?
A1: No, all existing positions and open orders will remain completely unaffected. The adjustment is applied to new orders and order amendments made after the update is complete. Your funds and leverage settings are secure.
Q2: What is the main benefit of a smaller minimum order size?
A2: A smaller minimum order quantity allows for more precise position sizing and better risk management. Traders can allocate capital more efficiently, which is particularly beneficial for those using smaller accounts or testing new strategies with less capital.
Q3: Do these new rules apply to all trading methods?
A3: Yes, the updated rules for order size precision and minimums apply universally. This includes manual trading on the web and mobile platforms, as well as all automated trading conducted through APIs, algorithmic strategies, and copy trading.
Q4: As an API user, what action do I need to take?
A4: You must update your trading systems to read the new lotSz and minSz values from the API and ensure all order quantities submitted are multiples of the new precision and meet the new minimum size. Failure to do so will result in order rejection after the update.
Q5: Why was the ETH/USDT pair chosen for this update?
A5: ETH/USDT is a highly liquid and widely traded market. Optimizing its contract specifications enhances the trading experience for a large segment of active traders by providing more granular control over their transactions.
Q6: Is there a risk of orders being canceled during the maintenance?
A6: The update is performed during a scheduled maintenance window. While the trading engine for these instruments will be temporarily unavailable, no active orders will be canceled as a direct result of this specific update. They will resume unchanged once maintenance concludes.
OKX remains committed to improving its product ecosystem and providing a superior service for all users. Traders are encouraged to review their strategies in light of these new parameters.