OKEx, a Malta-based digital assets exchange, announced on Monday the launch of its new product, Perpetual Swap, as part of its crypto-based financial product suites. According to OKEx, users may now perform perpetual swap, futures contract, and spot trading with margin and leverage at one stop.
OKEx described Perpetual Swap as a peer-to-peer, virtual derivative developed by OKEx to enable traders to speculate the direction of the price of digital assets such as Bitcoin. The product has a mechanism very similar to futures contract, but with no expiry, and settlement occurs daily. Each swap contract has a notional value of $100-equivalent BTC. Users may go long a position to profit from the increase of a digital asset’s price, or short a position to profit from the decline of a digital asset’s price, with a leverage of up to 100x. Perpetual Swap’s features include the following:
- No expiry – positions can be held indefinitely
- Trade closely to the underlying reference index
- Leverage level – 1-100x are available
- Track the price of the spot market through a funding mechanism
Users can also do the following:
- Mark Price mechanism helps to avoid unnecessary liquidation
- Lower transaction fees than other similar products in the market
- Fast settlement – swaps are settled daily, profits can be withdrawn daily;
- Partial liquidation system – minimizing the market impact during forced liquidation
- Tiered margin system enables traders to adjust their leverage level according to their risk appetite and market condition
Lennix Lai, Financial Market Director of OKEx, went on to add:
“This marked a key milestone for OKEx. The launch of perpetual swap demonstrated our continuous commitment to build a complete financial ecosystem on blockchain and crypto. With the new offering, investors and traders can select the products which best fit their trading and hedging strategies. However, we would like to remind our users that due to its highly leverage nature, implementing risk control strategies are equally crucial in trading.”