OKEX To Launch 100x Leverage USDT Futures on November 14

Published October 29, 2019 | Updated October 29, 2019

OKEX To Launch 100x Leverage USDT Futures on November 14

OKEx, the world’s 5th largest crypto exchange is all set to launch trading for Tether (USDT) futures on the 14th of November. The exchange will offer a linear futures contract with 10x leverage. 

Will a USDT- based Contract Reduce Risks?

The contract will be settled daily and will have pairs with Bitcoin (BTC), EOS, Ether (ETH), Bitcoin Cash (BCH), XRP, Ethereum Classic (ETC), Bitcoin SV (BSV) and Tron (TRX) and Litecoin(LTC). According to OKEx, this stablecoin-based derivatives contracts will be beneficial for traders and will help them navigate the market and take calculated risks with increased efficiency. Furthermore, a USDT- based derivative will reduce the need to switch between crypto-assets. 

Lennix Lai, Financial Market Director at OKEx,  hinted that the exchange in future may roll put more  USD-based stablecoin derivatives to provide the platform users with simplified hedging instruments.  He further revealed the reason behind the exchange’s choice to offer linear and not inverse futures contracts for USDT.

“Most of the time, users are not willing to hold altcoins as margin, and they also see inverse contracts itself are complicated to understand. We see this linear contract would be an open door to many new retail traders.”

USDT Futures to Launch on November 14th

The USDT futures contract will be launched on the 14th of November and the simulation for the same will start on the 5th of November. The USDT futures contract will have a fixed delivery date. The price will be set at the mean value of the index at the hour preceding delivery. Furthermore, the exchange will use a mark price to calculate the users’ unrealized Profits and Losses (PnL). This provision has been included to eliminate unnecessary liquidation in volatile market conditions. The exchange had confirmed its intentions to launch Tether Futures in late September. 

In another recent development,  OKEX joined hands with Klaytn, a global public blockchain project backed by Kakao Corporation. The synergy aims to build a stable blockchain ecosystem.  The partnership will further help the exchange to connect with other blockchain networks and portfolios.

Will USDT Futures gain the same popularity as Bitcoin Futures? Let us know, what you think in the comments below!

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.
Supriya Saxena 216 Articles
Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.
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