Recently, the crypto exchange company, OKX, announced its plans regarding the launch of trading crypto USDT (Tether) futures contracts with leverage up to 100x.
The exchange company will support various trading pairs with Ether (ETH), Bitcoin (BTC), EOS, Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), XRP, Tron (TRX), and Bitcoin SV (BSV). OKX confirmed its step to launch the USDT futures contracts.
The company will launch the derivatives contracts on November 14, 2019, and begin with simulation on November 5, 2019. The Perpetual Swap of USDT will launch on December 9, 2019, and the simulation of that swap will start from November 30, 2019.
There will be a fixed delivery date, and the price will depend on the index value at the hour preceding delivery. The company will consider the market price to calculate the profits and losses (PnL) of the user and mitigate unnecessary liquidation in the subtle conditions of the market. The daily settlement process will help to transform the unrealized to realized PnL to ensure a high level of flexibility in the utilization of the capital.
According to OKX, the crypto traders can easily explore the market and determine the risks by providing them with stablecoins-based derivatives contracts. The USDT stablecoin will decrease the need for the cryptocurrencies in profits as well as losses in USD value.
The Finance Market Director at OKX, Lennix Lai, said that the company would provide more USD derivatives to offer the same and straightforward hedging instruments. Lai thinks that it is a USDT linear futures contracts and it is like an open door for the retail traders. In most of the cases, the traders become unable to hold the altcoins as a margin, and they expect it as inverse contracts which are very complex to understand.