OKEx Officially Launches USDT-Settled Futures
OKEx introduces stablecoin settlement, expanding the possibility for taking crypto positions.
OKEx, one of the leading crypto-to-crypto exchanges, announced the official launch of futures settled in Tether (USDT), pre-announced at the end of October. The new markets offer derivative exposure, while only using USDT. The offering is part of the trend to grow the derivatives market for Bitcoin (BTC) and other digital assets, to offset risks on the spot markets.
OKEx futures contracts offer easier access, as each contract contains 0.0001 BTC. The market is open 24 hours, and settled at 8:00 UTC daily.
"The simulation of our USDT Futures Contract was very successful, and we received positive feedback from traders in the OKEx community," said Jay Hao, CEO of OKEx. "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're excited to add USDT linear contract to our Futures market and next on the Perpetual Swap market to meet the interests of our growing international user base."
For now, the market will be available for BTC, with the intention to launch futures for some of the most liquid altcoins. The offerings will include Ethereum (ETH), Litecoin (LTC), EOS, Bitcoin Cash (BCH), XRP, Ethereum Classic (ETC), TRON (TRX), and Bitcoin SV (BSV).
Margin trading remains highly risky, especially after offering 100X margin. OKEx has opened an emergency fund to cover liquidations for accounts with insufficient margin. But if the fund is depleted, the mechanism of “societal clawback procedure” will be launched.
OKEx will also perform oversight and reserves the right to close any positions that threaten other traders. The exchange will also monitor for dishonest attempts at manipulation.
Futures markets have grown in 2019, offering more active trading and the possibility to make bets on the BTC price beyond the spot market. OKEx has established itself as one of the most active spot markets, though volumes fell to around $650 million this Thursday.