OKEx NextGen Conference: OKEx Introduces Perpetual Swaps
On 3 December the NextGen Conference was held in Seoul, South Korea where OKEx announced its new derivative product called Perpetual Swaps
‘I think it’s a great product because traders want high leverage… You can hold onto a position as long as you want…’
Thomas Tse, OKEx Head Quantitative Strategist
The Malta-based exchange has a new financial product catering to speculative traders. The derivatives offered by OKEx is said to hold 100x leverage from betting for or against the price movements of Bitcoin and altcoins.
The product is reportedly said to have small transaction fees with a fast daily settlement.
The Perpetual Swap
Perpetual Swaps was first brought in by BitMEX. It is a form of derivative homologous to a futures contract.
OKEx’s Perpetual Swaps is a p2p product where speculators and other traders can wager on the changes in the price of a cryptocurrency. Settlements can be done every day. For example, if the funding rate is positive for the day settlements occur as longs will pay for the shorts. The opposite is true if the rate is negative.
Since the swaps do not carry an expiration date, a buyer can take his time before deciding when to buy an asset at which the seller holds to sell.
Panel Dialogue on the Crypto Market
‘A bear market is a bear market – minimize your damage, diversify your portfolio... there are a lot of other assets to invest in, you have to be realistic – cryptocurrency is still in its infancy.’
Ryu Dang, Bitgosu Co-Founder
The conference had a panel discussion participated by several industry personalities including Julien Guerrand, CEO of Kernel Technologies, who said he does not care about price changes and thought that it is ‘great to see swaps’; and Ryu Dang, co-founder of Bitgosu, who said market participants should minimize the damage done by the bear market and be realistic.
Photo @NextGen Conference by ICORating