Crypto Exchange OKEx to Launch USDT-Margined Perpetual Swap Trading

Popular cryptocurrency exchnages OKEx has announced the launch date of its highly anticipated USDT-margined perpetual swap instrument.

According to a press release, the exchange's latest crypto derivative offering will be officially ready for trading on December 16.

Much like the traditional futures trading offered on OKEx perpetual swaps essentially involve placing a bet on the future price of an underlying cryptocurrency. As in futures, traders can either open a short position, if anticipating a price drop or establish a long position, when expecting an increase.

However, in contrast to futures trading, perpetual swaps – as the name suggests – continue indefinitely. There is no expiry, allowing users to keep positions open continually. 

What’s on Offer?

OKEx' USDT-margined perpetual swap delivers several underlying cryptocurrencies to speculate on. These include BTC, EOS, ETC, ETH, LTC, BCH, BSV, TRX, and XRP.  Moreover, straight off the bat, OKEx will be offering a massive range of leverage, varying from 0.01–100x.

Explaining the reasoning behind it Jay Hao, CEO of OKEx elaborated on how successful futures trading had been so far:

OKEx has been at a stage where we kept evolving. We received great response from users after the launch of USDT futures trading last month. It has been a good example of us demonstrating our commitment in cultivating a good vibe in the derivatives space. Our goal is to provide a one-stop shop for professional and retail traders, offering both spot and derivatives product portfolio in one place. We’re always working to meet the needs of users in a shifting global economy and cryptocurrency ecosystem.

Details of OKEx's Perpetual Swap 

OKEx has designed several risk management techniques to insure against unjust liquidation and protect the underlying market. 

The first is the mark price. Typically a mark price system utilizes an index of prices to establish a consensus on 'fair price.' This has the effect of dampening the influence of market manipulation – combating against unusual or unfair liquidation. 

Further, OKEx's "Tiered Maintenance Margin Ratio (TMMR) System" deleverages traders and minimizes the impact of large liquidations on the market. To this end, OKEx also employs "Forced Partial Liquidation Mode" to lessen the consequence of market slippage caused by numerous liquidations. 

Before the big day, OKEx plans to run a simulation starting December 4, running until December 11.

Within the simulation, OKEx has devised a perpetual swap contest involving BTC/USDT, ETH/USDT, and EOS/USDT pairs. Traders are provided with a virtual 10,000 USDT to trade with each of the three pairs, with the total amounting to 30,000 USDT. Needless to say, the money isn't transferable or withdrawable and is only applicable for the duration of the trial simulation. 

Featured image via Pixabay.

Time to Be ‘Cautious or Short' Bitcoin, Says Bollinger Bands Creator

Francisco Memoria

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.