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The OKEx based in Malta, currently the second largest cryptographic exchange with a fixed volume of 24 hours, has launched a new bitcoin derivative product with no expiration date, which means that positions can be held indefinitely.
Announced Tuesday, the product, dubbed "perpetual exchange", allows encrypted negotiators to speculate on the future value of the bitcoin index (BTC) of OKEx on the US index (USD).
Each swap contract has a notional value of $ 100 equivalent in BTC, the exchange said in a note, adding that traders can both gain a position to profit from a bitcoin price increase or a short position to profit from the decline of the bitcoin price.
The new product offers up to 100 times the leverage, compared to 10 times commonly available in traditional capital markets, which according to OKEx can reduce trading costs. The settlement time is at 4:00 am and 4:00 pm UTC daily, while the traded price of a perpetual swap contract is "tightly anchored to the spot market price", the exchange said.
The perpetual swaps of OKEx also offer a "tiered maintenance margin ratio", which allows traders with open positions to adjust leverage based on risk appetite and market conditions and a "mark price" mechanism to help economic operators to avoid unnecessary liquidation in times of greater volatility.
The exchange said it plans to add swaps between different criptos in the future.
Trading screen image via Shutterstock
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