Crypto Exchange OKEx Launches Perpetual Swap

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Total News – Atlanta, GA 12/4/2018. Cryptocurrency Exchange OKEx has announced on December 3 that it will officially launch a Perpetual Swap product. The derivative contract was aimed to widen the exchange's option for cryptocurrency investments other than spot and futures. The announcement was made during the OKEx NextGen Conference held in Seoul, South Korea.

According to the announcement​: "Perpetual swap is a more powerful incarnation of the existing futures contract. Similar to the OKEx Futures, you can still long or short a position to profit from / hedge against the rise or decline of a digital asset's price. However, unlike futures trading, there is no contract expiry nor the need for roll-over. Instead, you can hold a position without any time limit and withdraw your realized profits anytime. in the meantime, you can also utilize a leverage up to 100x to maximize your trading strategy."

Since there's no fixed contract delivery date, "funding" is used to ensure the price of the perpetual swap is anchored to that in the spot market.

Thomas Tse, Head Quantitative Strategist at OKEx said this during an interview with CryptoGlobe:

"I think it's a great product because traders want high leverage. It never settles or expires, you do not need to 'rollover' your contract - you do not need to open a new position. So you can hold onto a position as long as you want - either bullish or bearish, and every day the market will price in a funding cost - a bit of interest you pay. It doesn't expire every few months, and traders don't have to enter a new position every new month with the new transaction fees. There's just the funding fee - and you might actually be paid the funding fee because if you're on the lower demand side you're being paid the funding fee."

Lennix Lai, OKEx's Financial Market Director stated:

"This marks a key milestone for OKEx. The launch of perpetual swap demonstrates our continuous commitment to building a complete financial ecosystem for 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 high-leverage nature, implementing risk control strategies are equally crucial in trading,"

OKEx is now joining the list of exchanges with its own perpetual derivatives, along with Bitmex, Crypto Facilities, and Deribit.

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