OKEx, a leading crypto exchange based in Malta, has announced the launch of a new derivative product named Perpetual Swap trading. OKEx enjoys the reputation of being world’s second largest cryptocurrency exchange in terms of adjusted daily trading volume.
According to the official press release, Perpetual Swap is a bitcoin-based peer-to-peer virtual derivative. The virtual derivative was developed by OKEx to mull over the price trends of cryptocurrencies. This new feature will enable users to indulge in perpetual swap, futures contract, and spot trading with margin and leverage at one stop.
Perpetual swap trading will be officially available at OKEx from December 11, at 01:00 (GMT+9).
Perpetual Swap uses the same methodology as those of future contracts. Its unique facet, however, is that it has no expiry, so positions can be held indefinitely. Settlements can be carried out quickly and on a daily basis. Users can, therefore, withdraw their profits daily. Moreover, users can also enjoy the partial liquidation system which minimizes the market impact during forced liquidation.
OKEx’s Perpetual Swaps come with a leverage level of 1:100. Each swap contract has a notional value of $100 in Bitcoin (BTC). Its tiered margin system allows users to adjust their leverage level as per the risks involved in the trading and the market condition.
Regarding the launch, Lennix Lai, Financial Market Director at OKEx stated, “This marked a key milestone for OKEx. The launch of perpetual swap demonstrated our continuous commitment to building a complete financial ecosystem on blockchain and crypto. With the new offering, investors and traders can select the product which best fit their trading and hedging strategies.”
He, however, cautioned users about the ‘highly leverage nature’ of the product and the risks it entails, and therefore, recommended the implementation of risk control strategies while trading with the product.
Currently, registered users have access to more than 400 token and futures trading pairs.
Earlier in October, in a significant move, OKEx had delisted over 50 trading pairs from its platform owing to the weak liquidity and trading volume. Again, in November, citing the aim to create a robust trading environment and offer the best trading experience to its users, the exchange announced the delisting of another set of trading pairs due to weak liquidity.