Nitro Spreads is an order book within the Liquidity Shop, enabling you to trade spread and basis trades. Spread trading is a strategy designed to capitalize on price differences between correlated assets across different markets, typically using the same underlying asset or reference instrument.
Spread trading usually requires traders to manually open positions in two separate order books. However, with Nitro Spreads, traders can now execute a spread trade with a single click. The Nitro Spreads order book ensures that all orders are executed with identical quantities for each component—or none at all—eliminating component risk and reducing slippage. It also supports diverse strategies, including funding rate farming, carry trading between spot and futures, and calendar spreads.
How Does Spread Trading Work?
Spread trading typically involves:
- A spot trading position vs. a perpetual contract (e.g., BTC/USDT spot vs. BTC/USDT perpetual).
- A spot trading position vs. a futures contract (e.g., ETH/USDT spot vs. ETH/USD quarterly futures).
- Two futures contracts with different expiry dates (e.g., quarterly vs. semi-annual LTC/USDT futures).
Skilled traders profit from price discrepancies (spreads) between instruments. This strategy involves opening two opposing positions (long and short) simultaneously with equal amounts. Spread trades are delta-neutral, meaning they carry no directional risk.
Delta measures how an instrument’s price changes relative to its reference asset. For example, if a BTC/USDT spot position rises by 1 USDT, the BTC/USDT quarterly futures price should also increase by ~1 USDT. If both positions move equally, the net value remains unchanged—a key advantage of spread trading.
👉 Discover how Nitro Spreads simplifies arbitrage
How to Trade on Nitro Spreads in OKX?
Placing an Order:
- Log in to Trading > Liquidity Shop > Nitro Spreads.
- Select your market (currently BTC/USDT or ETH/USDT).
Choose an available spread trade:
- Ask: Buy the spread.
- Bid: Sell the spread.
- Enter price and quantity.
- Confirm and execute.
Note:
- Orders exceeding the best available price execute immediately; others join the order book.
- Open orders expire after 7 days.
Canceling an Order:
Option 1:
- Locate the open order circle in the grid.
- Cancel under Open Orders.
Option 2:
- Navigate to Open Orders in Nitro Spreads.
- Cancel the order directly.
Instant Execution:
Use the Request Quote option for immediate pricing from OKX’s qualified market makers.
Nitro Spreads Fees:
- VIP Clients: 50% lower fees vs. individual component execution.
- Regular Clients: Standard fees per component.
Nitro Spreads FAQ
1. Which cryptocurrencies and instruments are supported?
Currently BTC/USDT and ETH/USDT spot, perpetual, and quarterly/semi-annual futures. More assets will be added.
2. What spread combinations are supported?
OKX supports:
- Spot vs. perpetual.
- Spot vs. futures.
- Perpetual vs. futures.
- Futures vs. futures (different expiries).
3. How do I interpret Bid/Ask prices on the spread grid?
- Bid: Price received (or paid) when selling the spread (buy near-date, sell far-date instrument).
- Ask: Price paid (or received) when buying the spread (sell near-date, buy far-date instrument).
Instrument date hierarchy: Semi-annual futures > Quarterly futures > Perpetual > Spot.
4. What is BBO Offset?
BBO Offset compares Nitro Spreads’ best price to the estimated best price in the central orderbook. A negative offset means Nitro Spreads offers a better deal.
5. Is Nitro Spreads liquidity shared with the central orderbook?
No. Nitro Spreads has dedicated liquidity pools.
6. Can I trade individual components after settling on Nitro Spreads?
Yes. Components become separate positions tradable in the central orderbook.