Crypto exchange OKEx is planning to launch Tether (USDT) futures trading, offering a linear futures contract with leverage of up to 100x.
A press release shared with Cointelegraph on October 29th revealed that the contract will have daily settlement and offers supported pairs with Bitcoin (BTC), EOS, Ether (ETH), Litecoin (LTC), XRP, Bitcoin Cash (BCH), Bitcoin SV (BSV), Ethereum Classic (ETC), and Tron (TRX).
OKEx said offering stablecoin-based derivatives contracts will offer a simpler and more efficient means for traders to navigate the market and calculate risks.
A USDT-based derivative will purportedly reduce the hassle of needing to switch between cryptocurrencies for those who book their profits and losses in USD value.
Financial Market Director at OKEx, Lennix Lai, has said that the exchange platform could roll out further USD-based stablecoin derivatives to provide similar, simplified hedging instruments.
Lennix also said the reasons behind the exchange’s choice to offer linear rather than 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.”
OKEx’s USDT futures will officially launch on November 6th and simulation will begin on October 30th. A USDT Perpetual Swap option will launch on December 2nd and simulation will start on November 25th.