OKX Implements New Funding Fee Collection Method in Global Expansion Effort
Leading cryptocurrency exchange OKX announced that it will change its funding fee collection mechanism. The platform also said that the change will happen for the remaining group of perpetual futures that it owns.
OKX changes funding fee collection mechanism
OKX in a statement said that it will gradually move from cross-period to current-period finance charge collection for the remaining group of perpetual futures. The change is aimed at providing users with improved services, OKX added.
Funding fee calculations that used to be based on the funding rate of the previous funding period (cross-period collection), will now be based on the funding rate of the current funding period (current-period collection).
What are perpetual futures?
Perpetual futures, sometimes referred to as “perpetual” or perpetual swaps, are a kind of derivative contract that lets traders make predictions about an asset’s future price. Traders can usually make predictions without having to worry about the price of an asset expiring. Perpetual futures are different from standard futures contracts as they don’t have an expiration date and can be kept indefinitely.
In the realm of cryptocurrency trading, perpetual futures are a widely used financial instrument. They are used for speculating on cryptocurrencies such as Bitcoin and Ethereum. However, they can also be used for other assets like commodities and indexes. In comparison to the spot cryptocurrency market, perpetual futures permit a higher level of leverage and might be more liquid.
OKX focuses on the expansion of clientage across the globe
OKX’s decision to change its funding fee collection mechanism comes at a time when the platform is trying to expand its clientage across the globe.
One of the biggest cryptocurrency exchanges in the world, OKX, has recently received a regulatory license in Dubai. The license will enable it to provide retail customers with bitcoin services. To attract sports fans and grow its client base, OKX has signed agreements with the Australian Olympic Team, McLaren, and Manchester City.
However, because of regulatory concerns, OKX is presently unable to accept users from the United States on its platform.