OKEx, a Belize-based centralized cryptocurrency exchange offering both spot and margin trading markets, has launched NEO/USD and NEO/USDT perpetual swap derivatives markets. The NEO/USD perpetual swap is settled in NEO tokens, and the NEO/USDT swap is settled in USDT tokens.

Perpetual Swaps

The perpetual swap format differs from traditional futures markets in that the perpetual swap does not have the expiration date that defines a traditional futures contract (in which an asset is agreed to be delivered for a certain price at an specified date in the future.)

Instead of the traditional delivery on an agreed-upon date, the perpetual swap contract is tethered to the spot price of the asset by a system in which one side of the trade pays fees to the other side if the price of the derivative varies from the spot markets.

For example, when the price of the perpetual swap derivative exceeds the spot price, those with long positions on the contract pay money to those with short positions on the contract every day. Through this method, traders are incentivized to open positions that bring the price of the contract in line with the spot price.

Up to 20x leverage in the OKEx derivatives markets are offered, for those who seek to assume the substantial risk of opening a larger trading position, by using money that they have borrowed from the exchange, in addition to their own.

Settlement time of the markets is at 8:00 UTC daily, and trading is open 24 hours per day, 7 days a week.

Specifications for the NEO/USD and NEO/USDT perpetual swaps can be found at the following link: