Cryptocurrency Exchange OKEx Launches Perpetual Swap Product to Expand Trading Suite

[PRIBO247]

South Korean cryptocurrency exchange OKEx launched its
perpetual swap trading product in Seoul on December 3, 2018,
during a press conference attended by BTCManager .

Burgeoning Crypto-Finance
Domiciled in Malta , OKEx described the product as a significant
addition to its growing list of crypto-centric trading products and
financial tools. With the launch, institutional investors and retail
traders can leverage bitcoin to ensure spot, futures, and swap
trading on a single platform.

For the uninitiated, perpetual swaps are distinct to a traditional
futures offerings in that they provide an expiry date-free position
on the market, meaning traders can hold on their position for as
long as required or if liquidation levels are reached. Swaps are
priced based on the price of the underlying asset they represent,
allowing traders to speculate on the direction of price movements
without holding the actual assets.

Each swap contract offered by OKEx holds a value of $100 worth of
BTC . Given the latter’s price of $4,016, at the time of writing based
on the exchange’s prices, a total of 40 contracts must be
purchased to gain total market exposure of one bitcoin.

Benefits and Advantages
Some benefits of OKEx’s perpetual swaps highlighted at the
conference included swap pricing kept intentionally close to
bitcoin prices, unlike most other futures products available on the
market, offers a maximum leverage of 100x, and partial liquidation
to prevent large-scale losses.

Other benefits include lower transaction fees, daily-settlements of
closed positions, fast-withdrawals of realized profits, and a “tiered
margin” system to allow traders to change their leverage levels as
per market movements and risk appetite. Lennix Lai , Financial
Market Director of OKEx, said:

“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.”

Lai cautioned traders to avoid over-leveraging their positions and
understand the inherently risky nature of the cryptocurrency
market. He recommends practicing robust risk control strategies
which are “equally crucial in trading.”
Trading of the perpetual swap product officially begins on
December 11, 2018. Meanwhile, traders and enthusiasts can take
part in a virtual trading competition to test the offering with a
virtual amount of ten BTC.

Source : https://btcmanager.com