Major cryptocurrency exchange OKEx has launched a new derivative crypto offering called Perpetual Swap trading, industry website Cointelegraph has reported.
OKEx already offers futures trading, which, it claims, “has been widely embraced by our institutional and professional traders and miners, making us the leader in the crypto derivatives market”. However, the company has also noticed that “the market demands a more flexible and convenient derivative product”. Perpetual Swap is designed to fill that role.
Cointelegraph cited a company press release, according to which, the product is a peer-to-peer, virtual derivative that allows users to speculate on the direction of the price of digital assets. The product is reported to be very similar to a futures contract, but with no expiry and daily settlement. Each swap contract has a notional value of $100 Bitcoin equivalent, Cointelegraph notes.
In a Medium blog post published yesterday, OKEx also said that users will be able to utilise “a leverage up to 100x to maximize your trading strategy”.
Lennix Lai, financial market director at OKEx, described the launch as “a key milestone” for the company.
“The launch of perpetual swap demonstrates our continuous commitment to building a complete financial ecosystem for blockchain and crypto,” Lai said in a statement. “With the new offering, investors and traders can select the products which best fit their trading and hedging strategies. However, he also advised OKEx users to take a more cautious approach with this product, saying that “due to its high-leverage nature, implementing risk control strategies are equally crucial in trading”.
OKEx is the second-largest digital currency exchange by trading volume. According to data from digital currency tracker Coinmarketcap, the platform has processed just over $570 million worth of crypto trades over the past 24 hours. Only Binance have seen better trading over the same period, with trading volume standing at $644 million.