OKEx, a cryptocurrency exchange with a functioning base in Malta, has set the ball rolling by bringing forth an innovative derivative product called Perpetual Swap. According to a press release by the exchange, perpetual swap is a peer to peer computer generated derivative created by OKEx. Hence, it gives users the opportunity to predict the direction of Bitcoin and other cryptocurrency prices.
Perpetual swap’s mechanism can be compared to a futures contract because they work in a similar way. However, settlements happen daily and there is no expiry, which means that traders can take out their earnings as they wish whenever they like. On the bright side, perpetual swap on the OKEx exchange can be leveraged at the ratio of 1:100. The estimated value of each of the swap contract is around $100 BTC (Bitcoin).
Perpetual swap trading is projected to be in operation by the 11th of December and it further enables users to execute futures contract, carry out perpetual swaps, and be able to leverage concurrently on trades.
With contract trading in mind, users now have two options in mind. They either take the long walk and make some profit whenever the prices of digital assets increase or take the short walk and make a similar profit when the prices of digital assets decrease like it usually does.
Regarding the perpetual swap product, the Financial Market Director of OKEx, Lennix Lai said, “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 products which best fit their trading and hedging strategies. However, we would like to remind our users that due to its highly leveraged nature, implementing risk control strategies are equally crucial in trading.”