OKX product solutions help cope with market fluctuations
Bnews editor
A comprehensive analysis of the advantages and disadvantages of OKX's 7 major trading tools will help you find the trading method that suits you best.
The market is volatile. It rebounds just after cutting losses, and plummets just after bottoming out. The temptation to buy more and the false breakouts are staged one after another, which makes people's mentality collapse. In a volatile market, how to trade elegantly and make profits? You must understand these OKX strategies!
First, you must clarify your trading style-are you a short-term hunter or a steady arbitrage player? Short-term traders can use tools such as contracts, grid trading, options, etc. to quickly enter and exit and seize arbitrage opportunities brought by market fluctuations; while steady arbitrage players can choose tools such as dual currency wins, shark fins, and fixed investment strategies to steadily accumulate profits in a volatile market, and even easily achieve low buys and high sells. Secondly, stop relying on "guessing the market" and use strategies to win profits. Whether it is using grid trading and Martingale strategy to automatically sell high and buy low for short-term arbitrage; or choosing dual-currency win and bottom-picking profit-taking strategy to lock in stable income within the range of fluctuations; or using shark fin and option strategies to seize the opportunity of huge profits when the market breaks through, effectively control risks through the stop-profit and stop-loss functions, and reasonable risk management to help you avoid traps.
Next, we will deeply analyze the gameplay and applicable scenarios of these strategies, and comprehensively analyze the advantages and disadvantages of OKX's 7 major trading tools to help you find the most suitable trading method for you. No matter which strategy you choose, choosing the right tool is always more important than blindly operating. Only by matching your own trading style can you calmly deal with market fluctuations.
1. You want low-threshold arbitrage
OKX spot grid is suitable for conservative users, and contract grid is suitable for advanced users. Because the contract grid has a high capital utilization rate, but there is a risk of liquidation, so strict risk control is required. The investment cost can be above 0U, and the participation threshold is low. Grid trading is an automated quantitative trading strategy that captures arbitrage opportunities brought by market fluctuations by dividing multiple grids within a preset price range, buying low and selling high. According to the application scenario, the contract grid is further subdivided into long, short and neutral modes to adapt to different market trends. OKX spot & contract grid supports custom parameters or AI parameters. Users can use it with just one click. It is very convenient.
2. You want to make a profit by bottom-fishing rebound
OKX provides two strategies: spot and contract Martingale. As a higher-risk strategy, Martingale is essentially a "counter-trend increase" strategy. Beginners should use it with caution! Mature traders need to lay out trend judgment and strict risk control. Martingale strategy, full name Dollar Cost Averaging (US dollar average cost), referred to as DCA, is a trading method that focuses on position management. The core concept is "loss increase position pull average price, profit reset", the main feature is to double the transaction amount after each loss until a victory is achieved. The basic assumption of this strategy is that as long as the capital is large enough, the final victory will make up for all previous losses and bring profits.
3. You can get interest even if you don't want to watch the market
Dual currency win is suitable for those who are not sure about the market direction but want to earn income, and those who are unwilling to trade at high frequency. Dual Currency Win is a structured product created by OKX that guarantees interest but not principal, which can help users earn extra income while buying or selling digital currencies at the target price. Users can subscribe to Dual Currency Win and trade mainstream currency pairs, such as BTC - USDT, ETH - USDT), so as to enjoy the stable income of any currency. But it is worth noting that it may be exchanged for another asset after the exercise is triggered. For this reason, OKX launched ETH/BTC currency-based Dual Currency Win, which supports BTC and ETH investment subscription to achieve low buy and high sell. Compared with U-based Dual Currency Win, it provides a new way to earn income, 0 fees to realize the conversion between the two major cryptocurrencies, continuous interest, and no fear of missing the market due to conversion to USDT, etc., which helps users hold coins without worry.
4. You don't want to lose the principal
OKX Shark Fin is suitable for users who don't care about how much they earn, but are unwilling to bear the loss of principal. Its core feature is that while enjoying the guaranteed income, they can also participate in the market and earn floating/extra income brought by the market. It allows users to earn annualized returns on assets such as USDT, BETH, and OKSOL in market fluctuations by tracking the fluctuations in the price of coins. If the market conditions meet expectations, higher additional returns can be unlocked. OKX Shark Fins provide flexible participation periods of 1 day, 3 days, and 7 days. There is no need to watch the market. You can freely choose according to market predictions and fund arrangements to easily obtain stable returns. OKX provides bullish/bearish shark fins. Users can buy bullish and bearish shark fins at the same time to cover two-way fluctuations, increasing costs but diversifying risks. In addition, you can participate when the panic index soars, and the highest annualized rate provided by the platform is better under high volatility. In short, Shark Fins are suitable as a "cash management tool" to use idle funds to obtain returns when the fluctuation range is clear, but positions still need to be strictly managed.
5. You want to earn both coin price gains and interest income
The OKX bottom-picking and profit-taking strategy is a strategy based on dual-currency wealth management products to automatically bottom-pick, stop profit to earn coupons and coin price gains. Circular arbitrage: Circular investment arbitrage is based on the two directions of low buying and high selling based on dual-currency wealth management: Circular investment arbitrage. U-standard income: Invest USDT, use dual-currency financial management to buy low, and after the low purchase is successful, stop profit, earn interest income while earning the difference in currency prices. This strategy currently only supports BTC and ETH, but the system can flexibly match according to the user's target price, minimum annualization, and maximum investment period. In addition, OKX's bottom-picking and profit-taking strategies provide two modes: ordinary mode and advanced mode. The price of the ordinary mode is set to a fixed absolute value, such as 75,000 USDT, which is suitable for scenarios with clear support/resistance levels and low flexibility. The price of the advanced mode is set to a dynamic ratio, such as a 5% drop in the market price, which is suitable for scenarios with no clear points but predicted fluctuation ratios, and high flexibility.
Choose the right tool according to the market
The essence of trading is not to predict the market, but to choose the right tool to deal with different market conditions. When the market fluctuates, blindly chasing ups and downs will only make the account take off-not a huge profit, but an explosion. Smart traders will not be angry with the market, but use tools to turn every market fluctuation into their own opportunities. For example, the OKX spot grid is suitable for Buddhist players who are too lazy to watch the market but want to earn some volatility income; the contract grid is an advanced tool with high capital utilization, but strict risk control is required. Dual Currency Winning allows coin holders to no longer "lose lying down", and they can get extra income regardless of whether the price goes up or down; while Shark Fin is the gospel for conservative users. It doesn't matter how much you earn, and stabilizing the principal is the kingly way.
There are three types of people in the market: the first type relies on luck, and the profit and loss are like a roller coaster; the second type relies on cognition, technical analysis + strategy execution; the third type relies on tools to model and automate complex transactions to maximize profits. The first two types compete on emotions and experience, while the third type is the victory of "tool people". The diversified strategies and structured products provided by OKX will stop you from being carried away by emotions, but let the tools help you execute your plan. For example, U-based dual currency winning is suitable for traders who "take stable income while waiting for the opportunity to enter the market", while grid trading is suitable for users who want to continue arbitrage and steadily obtain profits brought by market fluctuations.
"The market doesn't lose money, it's the retail investors who lose money." Although this sentence hurts, it points out a reality: the gap between speculation and trading is even greater than the gap between a bull market and a bear market. If you are still relying on "snap trading", your opponent may have already used strategies to accurately calculate every transaction. Choosing the right tool is the first step to turn the market into an ATM. OKX has provided a wealth of strategic tools. Whether it is steady arbitrage or high-risk gambling, there is always one suitable for you. Instead of relying on luck, it is better to use tools to put the probability on your side.
