We are pleased to announce that USDT-margined perpetual futures for SWELL will be listed on OKX starting at 9:00 am UTC on November 25, 2024. This expansion enhances the platform's derivatives offerings, providing traders with more opportunities to engage with emerging digital assets.
Both the OKX web interface and mobile app will support SWELL perpetual futures trading, along with full API accessibility for automated and institutional trading strategies.
SWELL Perpetual Futures Listing Details
Trading for SWELL/USDT perpetual contracts begins at the specified time. Swell Network, the project behind the token, is a liquid staking protocol designed for Ethereum stakeholders, node operators, and layer-2 ecosystems.
Key Contract Specifications
The SWELLUSDT perpetual futures contract comes with the following parameters:
- Underlying Asset: SWELL/USDT index
- Settlement Currency: USDT
- Contract Face Value: 100 SWELL
- Price Quotation: USDT equivalent per 1 SWELL
- Minimum Price Movement (Tick Size): 0.00001
- Leverage Range: 0.01x to 50x
- Funding Fee Interval: Every 4 hours
- Trading Availability: 24 hours a day, 7 days a week
Understanding Funding Fees
The funding rate mechanism is designed to keep the perpetual contract price aligned with the spot index. It is calculated as:Clamp(MA([(Best bid + Best offer) / 2 – Spot index price] / Spot index price – Interest), -1.5%, 1.5%), with Interest = 0.
A special note for the initial listing period: To protect users from excessive volatility common with new contracts, the funding fee upper limit will be capped at 0.03% until 4:00 pm UTC on November 25, 2024. After this time, the cap will return to the standard 1.50%. The first funding fee payment under the normal regime will occur at 8:00 pm UTC on the same day.
Price limit rules for SWELL futures will align with those of other perpetual contracts on the OKX platform.
Trading Perpetual Futures on OKX
Perpetual futures are a popular derivative product that allows traders to speculate on an asset's future price without an expiry date. They are margined and settled in USDT, offering a straightforward trading experience.
Leverage allows traders to open larger positions with a smaller amount of capital, but it also magnifies both potential profits and losses. It is crucial to employ robust risk management strategies, including stop-loss orders, when trading with leverage.
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The Role of Swell Network (SWELL)
Swell Network is a key participant in the Ethereum liquid staking landscape. It provides a platform for users to stake their ETH and receive liquid staking tokens (LSTs) in return. These tokens can then be used across various decentralized finance (DeFi) applications to earn additional yield, all while the original stake continues to earn staking rewards.
This dual-yield mechanism makes liquid staking a growing sector within crypto, and the listing of SWELL futures offers traders a way to gain exposure to its native token's price movements.
Getting Started with SWELL Futures
To begin trading SWELL perpetual futures, users need an OKX account. The process typically involves:
- Depositing USDT into the derivatives trading account.
- Navigating to the 'Derivatives' or 'Trading' section on the web or app.
- Selecting the SWELLUSDT perpetual contract.
- Carefully setting order parameters, including leverage level, order type, and stop-loss/take-profit levels before execution.
Frequently Asked Questions
What are perpetual futures contracts?
Perpetual futures are derivative contracts that allow you to speculate on the price of an asset like SWELL without an expiration date. They use a funding fee mechanism to ensure the contract price stays close to the underlying spot price.
What is the leverage range for SWELL perpetual futures?
The SWELL/USDT perpetual contract supports flexible leverage from 0.01x up to 50x. This allows traders to choose a risk level that matches their strategy and experience.
How are funding fees calculated and paid?
Funding fees are calculated every 4 hours based on the difference between the contract's mark price and the spot index price. Traders with open positions either pay or receive the fee depending on market conditions and their position (long or short).
When does the funding fee cap change after listing?
The funding fee cap is initially set at a reduced 0.03% to prevent volatility-related issues. This cap is lifted at 4:00 pm UTC on November 25, 2024, reverting to the standard maximum of 1.50%.
Is SWELL available for spot trading on OKX?
This announcement specifically covers the listing of perpetual futures. For information on spot trading availability, please check the official OKX support pages or the markets section within the platform itself.
What risks should I consider before trading?
Perpetual futures trading involves significant risk, including the potential loss of your entire investment due to leverage and high market volatility. It is essential to understand these risks, conduct your own research, and only trade with capital you can afford to lose.