Contract price limit

Published on Jul 14, 2023Updated on May 21, 20242 min read

1. What is Contract Price Limit?

  • Price limits are one of the most important risk management control measures to protect investors' interest and prevent market manipulation. Without price limit rules, traders may use small amounts of funds with high leverage to create significant price deviation and spreads.

  • On the other hand, simple limit rules will lead to a lack of market activity and price movement, losing the significance of contract trading.

  • To have a better efficiency for risk management control, the rules of price limit are not fully disclosed, and OKX will calculate the control rules dynamically by integrating more than 10 parameters, such as trading volume, execution volume, quantity of position, and the percentage of deviation from the index, etc. This is also to facilitate users to have a better understanding of price limit and trade convenience.

2. Objective

  1. To prevent price manipulation (Short-term price deviation)
  2. To preserve the normal price movement space for all contracts
  3. To bring control to the risk brought by market downfall

3. Price Limit Calculations

Phase Price Limit (Buy) Price Limit (Sell)
Within 10 minutes of contract generation Index * (1+X) Index * (1-X)
10 minutes after contract generation Min [Max (Index, Index * (1+Y) + price movement average within the last 10 minutes), Index * (1+Z)] Max [Min (Index, Index * (1-Y) + price movement average within the last 10 minutes), Index * (1-Z)]

For the details of X, Y, Z parameters, please visit: