Cryptocurrency exchange OKEx’s new Perpetual Swap product is showing good stability since launch.

Launched to fanfare in December 2018, OKEx’s Perpetual Swap product allows customers to buy and sell contracts and to speculate on future price movements in the digital asset market.

Using the tool customers can place long and short orders based on what they think the market price for a particular asset will be.

And the product is demonstrating good stability when compared to other exchanges offering perpetual swaps, such as BitMEX.

Flash crash

On May 17, a flash crash in the cryptocurrency market saw the BitMEX perpetual swap bitcoin price drop to $6,380, while the OKEx bitcoin perpetual swap price stayed much more stable dropping to just $6,627, a move that was much closer to the spot price of the asset.

Talking about their Perpetual Swap product, an OKEx spokesperson said in its seven months of existence it had already proven itself to be a solid offering for traders, recording a cumulative trading volume of $150 billion since the product became available on the platform.

“Perpetual Swap was introduced as we saw there was a gap in the market for a strong and stable swap product for traders,” they said.

“Since launch, the product is gradually being used more and more, recording a trading volume of around $1 billion recently, but previously seeing volume as high as $4.5 billion in June.

“It’s interesting to look at how the Perpetual Swap product compared to the May flash crash of the bitcoin swap price. What you can see is that OKEx’s product remains much more stable than products on offer from other exchanges.

“Of course, despite this stability anyone trading on our platform, whatever the product, should stay aware of the risks involved and make sure they have a plan in place to control any risk that they face.

“There’s a lot of volatility in the market, but still OKEx has recorded zero clawback and this is all thanks to our risk management system.”

OKEx is the world’s largest cryptocurrency and digital asset exchange by trading volume.

At press time it reported a 30-day trading volume of more than $55 billion, according to Coinmarketcap, and remains the number one exchange for millions of traders across the world.