What is Perpetual Swap?

Perpetual swap is a more powerful incarnation of the existing futures contract. Similar to the OKEx Futures, you can still long or short a position to profit from / hedge against the rise or decline of a digital asset’s price.

However, unlike futures trading, there is no contract expiry nor the need for roll-over. Instead, you can hold a position without any time limit and withdraw your realized profits anytime. in the meantime, you can also utilize a leverage up to 100x to maximize your trading strategy.

And also introducing: funding

As there is no fixed contract delivery date, a funding mechanism is adopted to ensure the price of perpetual swap is anchored to that in the spot market.

Funding = position value * funding rate

Funding occurs every 12 hours right after the daily settlements at 03:00 and 15:00 CET (UTC +1). A funding fee is only charged/received for open positions, based on the funding rate updated at 02:59 and 14:59 CET each day. When the funding rate is positive, longs pay shorts, and vice versa when it is negative. If you close your position before the daily funding time, you will not pay or receive any funding on the day.