OKEx Initiates Perpetual Swap Bitcoin Derivative Product


Malta-headquartered crypto exchange OKEx, the world’s number two in terms of 24-hour adjusted volume, has rolled out a new Bitcoin derivative product, which does not have an expiry date. This means that positions can be kept indefinitely.

Known as “perpetual swap,” the product which was publicly revealed recently, gives cryptocurrency traders an opportunity to speculate on the future value of OKEx’s Bitcoin (BTC) to U.S. dollar (USD) index.

In a statement, the crypto exchange says that every swap contract holds a “notional value” of $100 in BTC. OKEx further states that traders have the option to “long” a position from a rise in Bitcoin’s price or “short” a position to profit from the drop on Bitcoin’s price.

This new product provides up to 100 times advantage, in contrast to the mere 10 times usually available in conventional capital markets. This, according to OKEx, can lessen the trading cost. The Malta-based exchange says that settlement time is slated at 04:00 and 16:00 UTC daily, as the traded price of a perpetual swap contract is “closely anchored to the spot market price.”

In addition, OKEx’s perpetual swaps also provide a “tiered maintenance margin ratio” functionality, which traders with open positions can adjust to their advantage depending on their risk appetite and market conditions, as well as a “mark price” apparatus that will help traders evade unnecessary liquidations during periods of high volatility.

OKEx states that it also wants to introduce swaps between various cryptocurrencies in the coming future.