OKEx Announces Crypto Perpetual Swaps at Seoul’s Nextgen conference

Cryptocurrency exchange OKEX  announced the launch of a new Perpetual Swap product at its NextGen Conference in Seoul.

What’s the product about?

The new product will allow traders to speculate on the price movements of bitcoin and other cryptoassets with up to 100x leverage, and features “low transaction fees” and “fast” daily settlement of swaps.

so what are Perpetual Swap?

Perpetual swaps, first launched by Bitmex, are a kind of derivative very similar to futures contracts, where speculators, miners or others who want to bet on the future price of cryptoassets can do so, but without an expiry date and with daily settlement.

In simple words, they are a kind of rolling futures contract – so there is no set date at which a buyer has to buy the underlying asset – e.g. bitcoin – and at which the seller has to sell.

Since settlement occurs every day, “funding” is used to settle between long and short position holders: if the funding rate is positive, longs will pay the shorts, and vice versa if the rate is negative.

Our thoughts

I think it’s a great product because traders want high leverage. It never settles or expires, you do not need to ‘rollover’ your contract. You do not need to open a new position. So you can hold onto a position as long as you want – either bullish or bearish, and every day the market will price in a funding cost – a bit of interest you pay.

Soon we should be seeing more exchanges implementing this type of product.

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Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at wilson@cryptomenow.com

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