Barely a month after debuting Perpetual Swap Trading Simulation Competition, OKEx launches Perpetual Swap Trading. As a result, trades on OKEx can now access a suite of three services all at the same time.
The cryptocurrency exchange announced the new crypto-based financial product at its OKEx NEXTGEN Conference. Particularly, the product comes just a few weeks after the launch of futures trading on the same platform.
OKEx launches Perpetual Swap Trading in addition to futures trading
Interestingly, perpetual swaps are quite similar to futures contracts in many ways. In particular, traders can go long or short on any product like the price of Bitcoin. In essence, traders can “hedge against the rise or decline of a digital asset’s price.”
However, perpetual swaps have some unique properties that make them more powerful than futures contracts. Firstly, perpetual swaps do not have an expiry timeline on their contract. This is to say that the futures contract is perpetual. However, a trader can choose to pull out at any time to claim profits.
Further, perpetual swaps need no roll-over. “Instead, you can hold a position without any time limit and withdraw your realized profits anytime,” OKEx explained via a blog post.
Traders will also enjoy a leverage of up to 100x. Particularly, the aim is to make sure that traders are able to fully maximise their trading strategy.
Risk control strategies
The launch of the product is quite a “milestone” to the team at OKEx, as the Financial Market Director observed. Speaking at the OKEx NEXGEN Conference, Lennix Lai said: “The launch of perpetual swap demonstrates our continuous commitment to building a complete financial ecosystem for blockchain and crypto.”
Particularly, the new offering adds to the traders’ choice on the OKEx platform. Users will have the luxury of choosing a product that agrees with their hedging strategy and risk appetite.
However, as OKEx launches Perpetual Swap Trading, Lai cautioned that the high-leverage nature of the products calls for prudence. Specifically, the perpetual swaps and even the futures contracts have high leverage for high returns. However, traders will need to implement crucial risk control strategies to avoid loss of capital.