OKEx Cryptocurrency Exchange Launches No-Expiry Bitcoin Perpetual Futures Contract

by | Dec 20, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News

OKEx | Perpetual Swap | Bitcoin Derivative

OKEx, the Malta-based cryptocurrency exchange has officially launched, their latest derivative product, Perpetual Swap on their website and app. The Bitcoin (BTC) derivative has no expiry date and offers a daily settlement, implying that the consumer can hold their positions indefinitely.

As reported earlier, the firm has been running a special Perpetual Swap trading simulation competition, that invited investors to explore the concept of this very unique derivative. Now that it is officially live, the derivative will enable crypto traders to speculate on the future value of OKEx’s bitcoin (BTC) to U.S. dollar (USD) index.

A statement from the exchange platform elaborates that each swap contract has a notional value of $100 equivalent in BTC. Traders can either chose to long a position to profit from an increase in bitcoin’s price or short a position to profit from the decline in bitcoin’s price.

Daily Settlement 

In its first phase, the new product offers up to 100 times leverage in comparison to the 10 times commonly available in the traditional capital markets. OKEx claims that this could reduce the trading cost. While the trading price of the derivative is  “closely anchored to the spot market price,” the Settlement will occur daily at 04:00 and 16:00 UTC

In addition, OKEx’s perpetual swaps also feature a “tiered maintenance margin ratio” which will allow traders with open positions to adjust their leverage according to their risk appetite and market conditions, and a “mark price” mechanism to help traders avoid unnecessary liquidations at times of high volatility.

The exchange also revealed their plans of adding swaps between different cryptos in the future.

Read more: Most Of The World Can Now Use Bitcoin Without Internet, Thanks To Blockstream Satellite

 

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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