OKEx Ups the Ante on Exchange’s Perpetual Swap Trading with 7 Additional Contracts
Last month OKEx had launched its Perpetual Swap Contracts derivative product using Bitcoin [BTC]. Now they have added a host of new contracts to choose from on the companies website and its mobile app.
Who Is OKEx
The digital asset exchange is based in Malta and offers a variety of services.
Apart from the trading services of the prominent crypto-currencies, it offers futures trading, perpetual swap trading and an index tracker. With hundreds of crypto and futures trading pairs available, OKEx provides a safe, and reliable trading platform to people all over the world.
How Do Perpetual Swap Contracts Work?
Unlike the more widely used futures contracts, a perpetual swap is different in two ways, it has no expiry and the settlements are done everyday.
This is useful for market players who wish to create a synthetic exposure of margin trading, an option available as the said positions may be held indefinitely.
Risks And Leverages Of The platform
The issue of turmoil in the financial markets has been looming over the heads of most industries. The new year has done little to assuage those fears. In such a climate the risk of liquidation is ever present.
Thus most traditional markets, and now most crypto exchanges, use an automated forced liquidation process when the margin ratio of the account is lower than the maintenance margin ratio. Even so, this is a position taken to protect the initial investment and the leverages offered are a step in that direction.
This latest offering has been paired with a BTC perpetual swap for the moment and has a notional value of $100,with a leverage range of 1 – 100. However, the new pairs being introduced for Bitcoin Cash (BCH), Bitcoin SV (BSV), EOS, Ethereum Classic (ETC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), are valueed at $10 and have a leverage of 1 – 40.
In closing, with the relative tranquillity of the past few weeks, one hopes that the markets will soon regain the confidence to bounce back. More options like these are a welcome sight for the industry as different pairs could revive the sagging markets. Whether that actually happens one can only speculate at this stage.