Contract Trading Showdown: Comparing Futures Features of China's Leading Exchanges

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The competitive landscape of cryptocurrency derivatives trading continues to evolve, with major exchanges refining their futures offerings to attract traders of all levels. This comprehensive analysis dives into the core differences between futures contracts on two prominent platforms—Huobi and OKEx—focusing on contract design, risk management, trading depth, fees, and overall user experience. Whether you're a high-volume trader, a market maker, or a risk-conscious investor, understanding these nuances is essential for making informed decisions in the fast-paced world of crypto futures.

Core Keywords

Contract Design and Key Features

When evaluating futures platforms, the foundational elements—such as leverage options, margin models, and settlement mechanisms—play a crucial role in shaping the trading experience.

Leverage and Risk Control

Leverage flexibility is a key differentiator. OKEx supports 1–100x leverage, adjustable even after opening a position, giving experienced traders greater control over their exposure. In contrast, Huobi caps leverage at 20x and imposes stricter limits on large accounts—for instance, users with over 1,000 BTC in equity can only utilize 50% of their balance as margin. This reflects Huobi’s conservative risk management philosophy, prioritizing stability over maximum flexibility.

👉 Discover how flexible leverage can enhance your trading strategy.

Margin Modes: Full vs. Isolated

Another critical distinction lies in margin modes. OKEx offers both full margin and isolated margin options. Full margin uses the entire account balance to prevent liquidation, allowing profits from other positions to offset losses—a preferred setup for hedgers and arbitrageurs. Isolated margin limits risk to a specific position, helping traders contain losses but increasing liquidation risk during volatility.

Huobi currently supports only full margin, which simplifies risk management but limits strategic flexibility. However, the exchange has signaled plans to introduce isolated margin in the future.

Settlement Mechanisms

Both exchanges use inverse pricing, where contracts are denominated in USD but settled in cryptocurrency (e.g., BTC). For Bitcoin futures, each contract equals $100.

Settlement price calculation differs:

While both methods aim for fairness, Huobi’s VWAP approach may better reflect market conditions and reduce manipulation risks during volatile periods.

Maintenance Margin and Liquidation Policies

Liquidation thresholds are determined by maintenance margin rates, which vary based on position size and leverage.

For small positions (0–999 contracts), OKEx offers more favorable conditions—requiring only a 10% loss to trigger liquidation at 20x leverage versus Huobi’s 20%. This means OKEx users have more breathing room before being forced out of positions.

However, as position sizes grow beyond 10,000 BTC contracts (equivalent to $1 million notional), Huobi becomes more competitive. Its adjustment coefficient plateaus, while OKEx’s continues to rise, reaching up to 40%. This makes Huobi more attractive for institutional traders and large-volume participants.

Both platforms use mark prices—derived from spot indices and funding rates—to prevent "price pinning" or manipulation during liquidations. This safeguard enhances fairness and protects traders from sudden, artificial price spikes.

Notably, both have achieved zero loss-sharing events (i.e., no auto-deleverging) on Bitcoin delivery contracts since mid-2019, thanks to robust risk buffers and high maintenance margins.

Fee Structures and Trading Costs

Trading fees significantly impact profitability, especially for active traders and market makers.

👉 See how low fees can compound gains over time.

Lower fees likely contributed to Huobi’s rapid volume growth. In August 2019, Huobi’s Bitcoin quarterly contract saw a 752% turnover rate, far exceeding OKEx’s 190%, indicating strong user engagement and liquidity.

Liquidity, Market Depth, and Bid-Ask Spreads

Liquidity determines how efficiently large orders can be executed without slippage.

Bid-Ask Spreads

For Bitcoin quarterly contracts, OKEx maintains tighter spreads (average 0.116 USD vs. Huobi’s 0.199 USD), suggesting superior liquidity on the flagship product.

However, for weekly and bi-weekly contracts, Huobi outperforms with narrower spreads—0.43 USD vs. OKEx’s 0.66 USD—indicating stronger activity in shorter-dated instruments.

Order Book Depth

Analysis of top 20 bid/ask levels shows:

This suggests that while OKEx may offer better price precision, Huobi provides deeper liquidity for larger trades.

Trading Strategies: Practical Implications

Stop-Loss Optimization

Because both platforms confiscate the entire margin upon liquidation, setting manual stop-losses is critical. At current BTC prices:

By placing proactive stop orders slightly above these levels, traders can preserve capital and avoid total loss.

Arbitrage Opportunities

OKEx’s support for perpetual contracts enables advanced strategies like funding rate arbitrage between quarterly and perpetual futures. When price spreads widen (e.g., during bullish trends), traders can simultaneously long quarterly and short perpetuals to lock in risk-free returns—especially effective in full-margin mode.

Huobi’s lack of perpetual contracts limits such opportunities.

Volume Trends and Market Adoption

Despite launching its futures product only in late 2018, Huobi rapidly gained market share:

OKEx saw strong growth in April–May 2019 (72–157% monthly increases) but stabilized afterward. Both exchanges benefited from broader market momentum during that period.

Frequently Asked Questions (FAQ)

Q: Which exchange offers better protection against liquidation?
A: For small positions, OKEx provides wider liquidation buffers. For large positions (>10,000 BTC contracts), Huobi’s flat adjustment coefficient offers better resilience.

Q: Can I trade perpetual contracts on both platforms?
A: Only OKEx currently supports perpetual contracts. Huobi only offers delivery (quarterly/weekly) futures.

Q: Do either platform still use loss-sharing mechanisms?
A: No. Both have maintained zero auto-deleverging events on Bitcoin delivery contracts since mid-2019 due to strong risk buffers.

Q: Which is better for high-frequency traders?
A: Huobi’s lower trading fees make it more cost-effective for frequent trading and market-making activities.

Q: How do mark prices prevent manipulation?
A: Mark prices are based on spot indices and funding rates, not just last traded prices. This prevents sudden "wicks" or "pinning" from triggering unfair liquidations.

Q: Are isolated margin accounts available on both exchanges?
A: Only OKEx supports isolated margin. Huobi currently offers only full margin but plans to add isolated mode in the future.

Final Verdict: Choosing the Right Platform

Both exchanges excel in different areas:

👉 Start trading with a platform that fits your risk profile and strategy.

Ultimately, the choice depends on your trading style:

As the derivatives market matures, expect both platforms to continue innovating—driving better tools, tighter spreads, and stronger risk controls across the industry.