USDT-margined Futures: A Recap on AMA with OKEx CEO Jay Hao

A live chat with 3,000+ fans to get to know more about our latest futures

OKEx
OKEx
Nov 11 · 8 min read

Did you join our last ask-me-anything (AMA) live chat session with Jay Hao, CEO of OKEx, in our English Telegram group (t.me/okexofficial_en) on Nov 7? Throughout the AMA, Jay discussed our newly launched USDT-margined Futures with over 3,000 proactive followers, answering questions we collected from Twitter, as well as live questions from the audience on Telegram.

For those who missed it or who wanted to revisit the exciting Q&As, we have prepared for you this recap to all the 20 questions Jay answered from our communities.


Questions & Answers — All Original

1. USDT-margined Futures

What is USDT Margined Futures in simple words for beginners? (Twitter user: @0nchain_guy)

USDT as margin is similar to you trade in USDT spot market but with leverages. You can go long or sell short with a leverage up to 100x.

Comparing to our existing futures product, it’s more stable, as you’ve already avoided the volatility of the collateral. It’s more convenient, as you don’t have to switch between currencies to trade different contracts. And it’s more suitable to beginners, as the threshold of entering the market has lowered to ~ $1.

What tokens will be listed in the USDT-margined futures market? (Telegram user: @Avoji1234)

What is the core and advantages USDT-Margin features from OKEx that have and make it more better than other exchanger? (Twitter user: @ma_selff)

2. Low threshold — the face values of all USDT contracts are lower than USD$1;

3. Choices of cryptos — we support 9 major cryptos, and we’re planning to add more, including OKB, as long as we see the demand.

Not to mention our risk management system. You see, we have been offering futures since the launching of OKEx. And you know the crypto market has been wild these 2 years. We keep learning from this unpredictable market, perfecting the risk management system to deliver a reliable trading platform for our users.

We also offer different algo orders to help users to trade conveniently. They can even use our Derivatives Market Data to get insights for their trades. I would say we offer quite a lot of useful tools for our users. This is not something you can have on other platforms.

And of course our liquidity, needless to say we are one of the top exchanges. Good liquidity protects our users from extreme markets.

Actually our fees, in overall, should be the lowest in the industry. The more you trade, either spot or futures or perpetual swaps, the lower the fees for all markets. And now, if you hold more than 2000 OKB in your account, you can enjoy a 40% discount for fees.

Lastly, OKEx offers the most complete product suite. Our one stop trading platform allows you to trade fiat-to-token, spot, margin, futures, and perpetual swaps. This opens a lot of arbitrage opportunities which other exchanges cannot offer.

Launch of USDT Margined Futures is really Great by OKEx !! But why Okex selects USDT rather than USDK ? (Twitter user: @SamCryptoTrader)

However, the circulation of USDK is still comparatively low at the moment. Until it is more widely adopted, we may launch USDK futures. For now, we’re already considering launching OKB futures.

Mr. JAY Hao, Is it possible for users to manipulate USDT margin transactions? Can the positions they open cause sudden fluctuations in price? (Twitter user: @Burakozan18)

Does it adopt the same clawback mechanism? (Twitter user: @kvarcevfore)

What’s the index consist of? Any difference from btc margin futures? Will the price become more stable or more fluctuated? (Twitter user: @Pika1012)

What is the difference of linear futures contract over BTC margin contract? Is this futures is a friendly user? What is the difference of linear over inverse contracts in this futures? How it is importance of the stability of USDT into the crypto ecosystem? (Twitter user: @Ganbatt30810469)

USDT-margined futures allows you to use USDT as a collateral to trade any contracts. Say, if you want to trade BTC, ETH, and EOS contracts, you would only have to own some USDT. You will no longer have to exchange your assets into BTC, ETH, EOS in order to open the positions.

Also, the face value is ~ $1, meaning the threshold of opening a position is lowered. And it is much easier for users to calculate their profits by using USDT as margin.

Can USDT-margined futures replace the existing futures at OKEx? (Twitter user: @bill_claydon)

For example if you’re a BTC miner, and you want to hedge the risks by using futures. You may want to open BTC-margined contracts instead, as you already have some BTCs.

Hey Jay :) Is the insurance fund of USDT-margined futures shared with OKEx existing futures /Swap? (Telegram user: @lapawahudywae8792)

Any bonuses if I join the simulation? what’s its difference between the simulation and the real product to be launched? (Telegram user: @Tommyee)

Check it out here. It’s still ON, you should try it out 😎

Will you set leverage x125 as Binance? (Twitter user: @hiamPluto)

Comparing to other exchanges, do you have any advantages in terms of fees (Twitter user: @candysoul7)

2. Perpetual Swap

Do you have plans on launching USDT-margined perpetual swaps too? (Telegram user: @Dora_explora94)

What is the position limit for OKEX’s Perpetual Swap? (Telegram user: @bulonhienhongkk)

What affects Perpetual Swaps loan fee, will Okex have a plan to reduce Perpetual Swaps and Future fee, such as using OKB to pay fees? (Telegram user: @bulonhienhone)

Given the rollover convenience and new risk management measures, does it mean the Perpetual Swap is a better instrument than the existing futures? (Telegram user: @cailozma1900)

Futures contracts expire on a particular date, so the basis will be bigger. But perpetual swaps adopt a funding mechanism. Users can actually use them to execute different trading strategies, they can even try to arbitrage between the two products with different investment strategies.

Does an increase in the number of perpetual swaps affects the technical side of trading? is there a glitch and delays? (Twitter user: @JayHwan555)

We set very high standard for our technical stability maintenance. OKEx futures hasn’t encountered any technical problems through many extreme markets and high frequency of concurrent since its launch. On the basis of which, OKEx perpetual swap has been consistently upgraded the entire technical framework, optimized UI & UE, and improved the algo.

At the same time, we won’t stop here. Our trading system has been continuously optimized and upgraded. For example, some time ago, we just upgraded the matching engine for futures product and provided Tick by tick’s WebSocket market push service.

3. Future Development

Are you guys now giving up the spot market and focusing on derivatives instead? (Twitter user: @5Titovsky)

One of our biggest strengths is always being an one-stop trading platform. We’re trying to perfect every of our products, not only derivatives.

How big do you think crypto derivatives will be and what part will futures play in that? (Twitter user: @MoooonTo)


More AMA to Come

See you all tomorrow at 10:00 (UTC)!


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World’s Largest Spot & Futures Cryptocurrency Exchange

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Buy & sell Bitcoin, Ethereum and more at the world’s largest spot & futures cryptocurrency exchange. http://www.okex.com

OKEx Blog

OKEx Blog

World’s Largest Spot & Futures Cryptocurrency Exchange

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