CoinEx | Futures Contract Becomes Crypto Mainstream: CoinEx Launched 9 New Linear Contracts
Recently, the crypto market has seen a new round of major fluctuations. On January 10, the BTC price slipped below $40,000 and then exceeded $44,000 over the next few days. Many investors have been caught unprepared by such drastic fluctuations.
On January 13, dYdX, a derivatives trading DEX, announced on its official website that starting from January 14, the maximum initial leverage for BTC and ETH markets will be reduced from 25x to 20x. Meanwhile, the initial margin requirement will be increased from 4% to 5%. dYdX said that the change was made to comply with industry standards and to better protect traders from liquidation.
In today’s crypto space, other than spot markets, various BTC-based contracts and derivatives have also cropped up here and there, and perpetual contract markets have become the primary investment target of many investors. When such markets were first invented, investors tended to choose inverse futures contracts. However, these contracts are subject to the risk of fluctuating margins as a result of drastic market swings.
Over the last two years, linear futures contracts (the opposite of inverse futures contracts) that are settled with stablecoins have captured the mainstream spotlight. These contracts are more intuitive in terms of both trading and settlement. Plus, they have reduced the risk of fluctuations in the margin price. In addition to the common inverse futures contracts, a growing number of investors have recognized linear futures contracts, which have become the mainstream in the contract market.
Linear futures contracts have addressed one problem: Investors no longer have to prepare the relevant cryptos for contracts that use different coins. Instead, they only need to stock up on one type of margin (USDT) to purchase different kinds of crypto contracts on a trading platform. Moreover, the margin of such contracts will not be affected by price volatilities. As linear futures contracts become increasingly popular in the crypto market, CoinEx is also actively planning for this field to offer more contract trading options to its users.
CoinEx is planning to introduce nine new Linear Contrats to meet more trading demands and bring more diversity to its Futures markets.
I. Launch Time
January 20, 2022 (UTC)
II. New Markets
CoinEx will introduce 9 new markets, covering CROUSDT, HNTUSDT, KLAYUSDT, CELOUSDT, ROSEUSDT, MINAUSDT, HOTUSDT, ENSUSDT, and YGGUSDT.
Equipped with over 100 contract markets, the exchange will continue to work on futures contract markets to meet more diversified needs for financial derivatives.