World’s top cryptocurrency futures exchange adds USDT futures trading with pairs including BTC, ETH and EOS
Key features of OKEx USDT Futures Contracts include:
“Most of the time, users are not willing to hold altcoins as margin, and they also see inverse contracts itself are complicated to understand. We see this linear contract would be an open door to many new retail traders,” added Lai. “At OKEx, we’ve developed a safe, reliable, and stable environment for cryptocurrency trading, and strive to offer new services based on our customers’ interests. We would continue to research and add stablecoin-based derivatives so to offer a simpler hedging instrument for traders who normally book their profit and loss in USD value.”
OKEx’s futures contract has a fixed delivery date, and the delivery price will be the mean value of the index the preceding hour before delivery. A mark price is used to calculate users’ Unrealized Profits and Losses (UPL) to reduce unnecessary liquidation in volatile market conditions. A daily settlement process at 16:00 Hong Kong Time (HKT) moves unrealized Profits and Losses (PnL) into realized PnL, increasing flexibility of capital utilization. OKEx also offers hedging tools including insurance to assist traders in reducing risk.
To ensure index prices accurately reflect the spot market price of each token, OKEx has carefully selected the market prices of other major exchanges as the weighted index constituents for each token. These exchanges include Huobi, Bittrex, Coinbase and Binance. Measures will be introduced to handle abnormal situations.
OKEx has adopted an enhanced risk management system for derivatives, which includes: