Cryptocurrency exchange OKEx has launched a groundbreaking derivative product called "Perpetual Swap," enabling traders to maintain positions indefinitely without expiration dates. This development marks a significant advancement in cryptocurrency derivatives trading.
Understanding Perpetual Swaps
Perpetual Swaps are peer-to-peer (P2P) virtual derivatives developed by OKEx that allow users to speculate on digital asset price movements. Key features include:
- No expiration dates: Unlike traditional futures contracts
- No daily settlements: Positions can be maintained continuously
- Fixed nominal value: Each contract equals $100 in Bitcoin (BTC)
- Margin trading: Supports both long and short positions with leverage
Trading Mechanism and Launch Timeline
The new derivative enables simultaneous execution of:
- Perpetual contracts
- Futures contracts
- Spot trading
Launch date: Trading will commence on December 11
Risk Management Considerations
Lennix Lai, OKEx's Financial Market Director, emphasized:
"We want to remind users that this is a high-leverage product, meaning risk control strategies are equally crucial in trading."
Recent Platform Developments
OKEx has been optimizing its trading environment through recent actions:
- October 2019: Delisted 50+ trading pairs with weak liquidity
- November 2019: Removed additional illiquid pairs to improve market quality
These changes aim to create a robust trading ecosystem with optimal user experience.
Industry Context
The cryptocurrency derivatives market continues to evolve:
- Huobi recently launched its derivatives market (Huobi DM)
- Global exchanges are expanding product offerings to meet trader demand
👉 Discover advanced trading features on OKEx's platform
Market Position
At time of writing, OKEx ranks as:
- #2 cryptocurrency exchange worldwide by adjusted daily volume
- Daily trading volume: Approximately $523 million
Frequently Asked Questions
What makes Perpetual Swaps different from futures?
Unlike futures with set expiration dates, Perpetual Swaps allow indefinite position maintenance without mandatory settlement.
What leverage levels are available?
While specific leverage ratios aren't disclosed, OKEx emphasizes these are high-leverage products requiring careful risk management.
How is the contract value determined?
Each Perpetual Swap contract maintains a fixed $100 BTC nominal value regardless of Bitcoin's market price.
Can I trade other cryptocurrencies besides BTC?
The initial announcement focuses on BTC contracts, but OKEx may expand to other digital assets in future.
What are the trading hours?
Perpetual Swaps will likely follow OKEx's standard 24/7 trading schedule for derivative products.
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This comprehensive overview demonstrates OKEx's commitment to innovation in cryptocurrency derivatives while maintaining focus on market quality and trader experience. The Perpetual Swap product represents a significant evolution in digital asset trading instruments.