OKEx, a digital asset exchange based in Malta, announced this Monday that it has launched a new derivative product – Perpetual Swap, in a move that brings the exchange much closer to rounding off its crypto-based financial product offering.
According to the statement released by the exchange, Perpetual Swap is a peer-to-peer virtual derivative. The product was created by the company to allow its traders to speculate the direction of the price of cryptocurrencies such as Bitcoin (BTC).
Perpetual Swap works similarly to futures contracts. However, there is no expiry and settlement occurs daily, allowing traders to withdraw their profits on a daily basis. In addition, Perpetual Swaps on OKEx come with a leverage level of 1:100.
On OKEx, each swap contract has a notional value of the equivalent of $100 in BTC. Users can choose one of two strategies – take a long position and profit from the increase of the digital assets price, or take a short position and profit from a drop in price.
With the addition of Perpetual Swap, users of OKEx now have access to perpetual swap, futures contract, and spot trading with margin and leverage on the Maltese exchange. At present, customers of the exchange have access to more than 400 token and futures trading pairs. The new product will be officially available on the exchange on December 11, 2018, the statement said.
Commenting on the new product, Lennix Lai, Financial Market Director of OKEx, said: “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.”