A crypto exchange OKEx announced this Monday that it has launched a new derivative product – Perpetual Swap, in a move that brings the exchange much closer to rounding off its crypto-based financial product offering, Finance Magnates reported.
Perpetual Swap is a peer-to-peer virtual derivative. The product was created by the company to allow its traders to speculate the direction of the price of cryptocurrencies such as Bitcoin (BTC).
Perpetual Swap works similarly to futures contracts. However, there is no expiry and settlement occurs daily, allowing traders to withdraw their profits on a daily basis. In addition, Perpetual Swaps on OKEx come with a leverage level of 1:100.
Each swap contract on OKEx has a notional value of the equivalent of $100 in BTC. Users can choose one of two strategies – take a long position and profit from the increase of the digital assets price, or take a short position and profit from a drop in price.
OKEx users now have access to perpetual swap, futures contract, and spot trading with margin and leverage on the exchange. At present, customers of the exchange have access to more than 400 token and futures trading pairs. The new product will be officially available on the exchange on December 11, 2018.