OKEx Expands Derivatives Line With Tether-Margined Bitcoin Futures
The new BTC/USDT futures product is a virtual derivative, quoted and settled in Tether. It has a face value of 0.0001 BTC, and traders can long or short a position, with leverage from 0.01 to 100x. But why trade with Tether over BTC/USD futures… or even Bakkt’s Bitcoin settled futures?
OKEx lists a number of advantages in its press release. Firstly, as a linear contract, it claims there is no need to hedge the margin risk of an inverse contract. Also, trading in Tether removes the need to switch between fiat and cryptocurrencies, improving efficiency and reducing cost.
OKEx claims that the trading experience is also more intuitive, making it easier for users to master. It describes the system as ‘similar to spot trading, with the addition of leverage’.
The Future Of OKEx Futures
Following the successful simulation period, OKEx CEO, Jay Hao, said that he had received positive feedback from traders. However, he claimed that this was just the beginning for Tether-backed futures products.
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.
Following the addition of the USDT linear futures contract, there are plans to add the pairing to OKEx’s perpetual swap market. Other cryptocurrencies, such as EOS, ETH, LTC, and BCH will also launch on the USDT-margined futures market soon.
World’s Largest Futures Cryptocurrency Exchange?
OKEx claimed over $2.4 billion of crypto derivatives was traded in just 24 hours back in March, leapfrogging BitMEX, and knocking it off the top spot.
However it has also faced accusations that up to 90% of claimed spot-volume was wash-traded. This even led CEO, Hao, to put up a 100BTC bet, that he could prove that at least 10.1% of the exchange’s volume was real.
Because of course, 89.9% of volume being wash-traded would be fine.