MALTA – Cryptocurrency exchange OKEx has launched a new bitcoin (BTC) “perpetual swap” derivative product, allowing traders to speculate the future value bitcoin to the dollar (USD) index.
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“As a new product in our derivatives line-up, it definitely offers more opportunities for traders to hedge exposure and speculate on digital asset prices,” said OKEx in a statement.
The Perpetual Swap is OKEX’s latest derivative product characterized by no expiry and delivery. At the first phase, it supports BTCwith a maximum of 100x leverage.
The Perpetual Swap also features mark price, tiered maintenance margin ratio system, and partial liquidation mechanism for better risk management.
“No contract expiry and delivery means it saves your time from rolling over your contracts regularly,” the company stated on their official blog.
“Your profit and loss are realized and settled twice a day, allowing you to leave the game and allocate your fund for other uses almost anytime you desire. The provision of up to 100x leverage offers you highly multiplied gain potentially. But you should also be very cautious about the higher risks involved.”
OKEx’s perpetual swaps give traders a “tiered maintenance margin ratio” preference, enabling traders with open positions to alter leverage, as well as a “mark price” option to prevent liquidations at times of high volatility.