OKEx has recently launched support for the trading of perpetual swaps. OKEx is an intuitive UI that lets professionals trade tokens with fiat currencies easily.
It also offers Spot or Margin Trading for up to 100 tokens such as Bitcoin, Litecoin, Ethereum, etc. It also supports leverage options like Futures Trading arbitrage and convenient risk hedging, Stabilizing income, etc. It also has support for fully integrated OK Blockchain Capital services for the stalwarts of blockchain and their teams or projects.
The official website announces the news as:
Dear valued customers,
We are pleased to announce that NEOUSD & NEOUSDT Perpetual Swap trading is officially live on the OKEx website and API from 07:00 Mar 5, 2020 (UTC).
The OKEx Perpetual Swap is a well known virtual derivative commodity that is operated in digital tokens like Bitcoins or BTC. Every swap contract is worth a 100 USD Face Value. Traders can attain a stance to benefit from the growth in the price of a digital asset, or find a position that helps it gain through the decline of the price of digital assets. The accessible limit of the Leverage ranges around 1-100x.
It has quite a few similarities to the futures contract of OKEx, and it also has some differences. OKEx Perpetual Swap differences:
Delivery: Perpetual Swap doesn’t have a delivery date or expiration date.
Funding: Since there are no deadlines for the delivery, mechanism of funding is employed to make sure that the price of Perpetual Swap is consolidated with the spot market;
Mark Price: The marked price is employed to find out the Unrealized Profits and Losses (UPL) of the users in an effort to minimize the unwanted liquidation under the volatile conditions of the market.
Daily Settlement: Everyday settlement process moved Unrealized PnL to Realized PnL, growing the capital utilization flexibility.
Tiered Maintenance Margin Ratio System:
Maintenance Margin Ratio (MMR) is the minimum margin ratio required to fix the current position of a user. When the Margin Ratio and fee rate for Forced-Liquidation goes below the MMR, enforced liquidation happens.
Forced Partial Liquidation:
While the margin ratio and the rate of Forced-Liquidation Fee is less than the margin ratio maintenance of the tier, the system will attempt to bring the users with bigger positions and 3 or higher tier below to a minimum MMR tier by liquidating the position of user, till the Margin Ratio, as well as the rate of Forced-Liquidation Fee, aligns with the requirements for MMR of the level.