It has been an interesting and, albeit belated Christmas for cryptocurrencies. An example of this includes OKEx, the cryptocurrency trading platform based in Hong Kong.
The company has made it public that perpetual swaps of Ethereum (ETH) will be readily available on its platform as of December 26th (Boxing Day).
This sequence of announcements were made by OKEx on the same day. These perpetual swaps, in more simplistic terms, serve as a form of virtual derivatives and products which can and are settled with Ethereum.
Unlike the currently existing futures contracts that the platform offers, which predominantly concentrate on their delivery, funding, market price and daily settlement costs, Perpetual swaps will operate differently. For starters, daily settlements will take place on a different basis, the latter taking place every twelve hours, between 3am and pm.
Some of the unique attributes that these perpetual swaps allow for are far greater leveraging compared to futures. Allowing up to 40 times leverage for buyers, with accompanying equality in weight constituents within accompanying fiat or crypto. This also includes trading pairs from other crypto exchanges like GDAX, Gemini, Bitstamp among a number of others.
Along with the inclusion of its swap of ETH, the Hong Kong-based exchange has alluded to its desire to launch further perpetual swap products for other cryptocurrencies like Litecoin, Ethereum Classic, Ripple (XRP), Bitcoin Cash, and BSV in the foreseeable future.
While the cryptocurrency market has been in a state of retraction from an initial bounce, sliding downwards over the course of this week. Ethereum specifically saw a decline of 6.8 percent over the course of the day, falling to $117. While this is bad news for short sellers who bought at a high, it remains the third-largest crypto, with a total market capitalization of over 12 billion dollars.