A renowned cryptocurrency exchange based out of Malta ‘OKEx’ has recently introduced a new derivative product named Perpetual Swap trading.
Perpetual Swap developed and launched by OKEx is a peer-to-peer virtual derivative. The new feature by the exchange will allow users to speculate the direction of the price of digital currencies. The functioning of Perpetual Swap operates in a similar way to futures contracts. The only difference is that there are no expiry and settlement dates.
In this manner, users can withdraw their profits on a daily basis, with a notional value of $100 Bitcoin (BTC) on each swap contract. Also, users can open a short or long position in it. Longs will be profitable if there is a rise in the price of the digital asset.
On this launch of the new product on the platform, Lennix Lai, Financial Market Director of 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 further added that the product is quite risky and the platform advises to implement risk control strategies, as it is safer to do so while using these products. He recommends users to practice robust risk control strategies, considering it “equally crucial in trading.”
Through this product of OKEx, users will have access to perpetual swap, futures contract and spot trading with margin and leverage. Moreover, the trading of the perpetual swap product officially starts on December 11, 2018.
Notably, OKEx delisted around 50 trading pairs which were having lack of liquidity. Also, in November, the exchange declared it was delisting the second swathe of trading pairs because of “weak liquidity”. Furthermore, the exchange had a trading volume of $502 million in the last 24 hours according to CoinMarketCap.