Exactly one month after OKEx launched its Perpetual Swap Contracts derivative product, the exchange has announced that it will be enhancing the service by adding the 7 new contracts that include: Bitcoin Cash (BCH), Bitcoin SV (BSV), EOS, Ethereum Classic (ETC), Ethereum (ETH), Litecoin (LTC), and XRP. Together with Bitcoin (BTC), users of the platform now have 8 different perpetual swap contracts to choose from on OKEx.com and its Mobile App.
What is A Perpetual Swap?
A perpetual swap is similar to a traditional futures contract, but there is no expiry and settlement occurs daily. It is a derivative contract which attempts to create a synthetic exposure of margin trading on the spot. Unlike conventional futures, users’ positions can be held indefinitely.
Leverages on OKEx
The Bitcoin perpetual swap has a notional value of $100 and has a leverage range of 1 – 100x. In the case of the 7 additional swaps with BCH, BSV, EOS, ETC, ETH, LTC and XRP, the contract face value is $10 with a leverage of 1 – 40x.
Risks Of Liquidation
As with all crypto derivative products offered by exchanges, users are cautioned on the risks of liquidation. Most exchanges, including OKEx, have a forced liquidation mechanism that is activated when the margin ratio of one’s account is lower than the maintenance margin ratio. Forced liquidation is meant to protect the funds borrowed to open the trading position.
More About OKEx
Based in Malta, the exchange is a world-leading digital asset exchange that offers trading services centered around prominent cryptocurrencies. It also has futures trading and perpetual swap trading of some of these digital assets. The exchange also offers an index tracker. At the moment of writing this, OKEx has over 400 cryptocurrency and futures trading pairs. The exchange offers a safe, reliable and stable trading ecosystem for its millions of customers from all over the globe.
What are your thoughts on OKEx expanding its perpetual swap service to a total of 8 contracts? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.