Digital asset exchange OKEx has become the latest financial player to bet on cryptocurrency-based derivative products as a way to widen its customer base. The trading platform launched virtual coins swaps during the OKEx NEXTGEN Conference in Seoul on Monday.

Called “perpetual swaps,” the financial instruments expanded the exchange’s existing futures offering with a timeless product as those derivatives allow clients to take a long or short position against the price of virtual coins with no expiry date. The swaps use the following funding formula: funding=position value*funding rate.

“Funding occurs every 24 hours right after the daily settlement at 10:00am CET. A funding fee is only charged/received for open positions, based on the funding rate updated at 09:59 am CET each day. When the funding rate is positive, longs pay shorts, and vice versa when it is negative. If you close your position be…

This article appeared first on Cryptovest

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