How to use segmented delegation in Okx's contract trading?
Aug 09, 2024
OKX is a cryptocurrency exchange known for offering a variety of trading services, including spot trading, margin trading, futures trading, and options trading.
What is segmented delegation?
Segmented order refers to the practice in contract trading where you can set a specified price range and place multiple limit orders at once according to a specified quantity allocation pattern within this range. Multiple sub orders are independent of each other, which can reduce the impact of bulk orders on the market, and obtain lower slippage and trading experience while specifying the entry average price.
What are the advantages of segmented trading?
Reasonable risk control: Segmented delegation breaks down bulk orders into several small orders, disperses them in and out of the market, reduces the impact on the market, and minimizes the trading risk caused by price fluctuations caused by large orders
Diversity: Segmented delegation sets multiple delegation modes, such as equal distribution, ascending order, descending order, and random. There are four modes to split orders and meet your ordering needs.
Efficient: Automatically placing multiple split orders is beneficial for quick transactions and improving your trading efficiency.
Elements of segmented delegation
Minimum price: The lowest price within the set price range for a transaction.
Highest price: The highest price within the set transaction range.
Order quantity: How many small orders have the order been divided into.
Quantity: The total expected number of transactions.
Quantity allocation:
Average: The number of orders entrusted is the same for each order. Regardless of price increases or decreases, the quantity of orders placed remains unchanged.
Ascending order: The number of orders placed increases proportionally with the price.
Descending order: The number of orders placed decreases proportionally as the price increases.
Random: The quantity of each order entrusted is random. Regardless of whether the price rises or falls, the quantity of a single order will be randomly allocated.
6. Average entrance price: The weighted average value calculated based on the quantity of each sub order.
How to use segmented commission in contract trading?
1. Open the Okx App, select "Trading" - "Contract", and choose the contract trading pair you want to trade.
2. In the order type column, click on limit order or market order, and select 'segmented order'.
3. Set parameters for segmented delegation, such as minimum/maximum price, number of orders, quantity, average entry price, etc.
4. Click on 'open multiple' or 'open empty', and in the pop-up dialog box, confirm the order information. After confirming that it is correct, click 'confirm'. Unfinished orders can be viewed in the commission order, while completed orders can be viewed in the position.
Can segmented delegation be modified or cancelled?
You can choose to modify or cancel the segmented orders for the unfinished portion. The completed portion cannot be modified.
Example of segmented entrusted transaction:
Taking the USDT perpetual contract as an example.
Assuming the current market price of ETHUSDT is 3016 USDT, if using segmented orders to long 90 ETH, the parameters are set as follows:
Minimum price: 2800
Highest price: 3200
Number of orders: 9
Quantity: 90 ETH
Quantity allocation: average
Average entrance price: (weighted average automatically calculated by the system based on the above parameters)
After submitting the order, a bulk order of 90 ETH is split into an average of 9 sub orders for entry and entrusted trading. The quantity of each sub order is 90/9=10 ETH, ranging from 2800 to 3200, with equal spread pending orders. The price difference for each order is (3200-2800)/(9-1)=50 USDT, which means that 2800, 2850, 2900, 2950, 3000, 3050, 3100, 3150, 3200 are each placed with more than 10 ETH.
If the current price, such as 3016 UST, is better than the sub order commission price, such as 3050, 3100, 3150, 3200 sub orders with multiple orders, the best market price will be used to immediately close the order (orders that exceed the limit rule, such as orders that exceed 5% of the market price, will be cancelled), and the remaining sub orders will enter the commission order waiting for completion.
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