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BitMEX Launches First-Ever FX Perpetual Swap Contracts, Bringing Crypto Innovation to Global FX Markets

  • FX Perpetual Swaps will allow users willing to trade currency pairs to purchase crypto margin contracts with up to 50x leverage – all without the worry of expiry dates.
  • BitMEX is the only cryptocurrency exchange in the world to offer this type of product, the first-ever crypto perpetual currency exchange listing.
  • The product unites the unique features of crypto perpetual swaps, invented by BitMEX, and the world’s largest and most liquid market – FX.
  • FX Perpetual Swaps are traded fairly on an order-book driven, P2P market, and backed by the largest insurance fund in the industry.

BitMEX, one of the most trusted crypto trading platforms in the world, has announced the launch of its FX perpetual swap contracts (FX perps), the first-ever crypto currency exchange perpetual swap listing. The new product allows users to trade 22 initial contracts on some of the most popular foreign currency pairs 24/7, even when the foreign exchange (FX) market is closed. As part of BitMEX’s broader derivatives offering, individuals and institutions will be able to trade FX perps with up to 50x leverage. In 2016, BitMEX invented the perpetual swap, which has become the most traded crypto product in history. This success story now continues with FX perps.

The FX perpetual swap is a type of derivative contract that combines the advantageous attributes of the spot and futures markets. The perpetual swap offers leveraged trading, working in the same way as traditional futures contracts but without an expiration date. One of the key innovations is a funding rate that is paid every eight hours to help trading prices stay in line with the price of the underlying index. The FX Perpetual Swap allows users to buy or sell currency pairs – for example EURUSD and NZDUSD – in order to capitalize on price differences in foreign currency markets. FX perpetual contracts on BitMEX are margined and settled in Bitcoin or Tether (ERC-20).

BitMEX’s FX perpetual exchange product is ideal for traders who want the benefits of derivatives without the hassle of expiry dates. The perpetual swap is the most popular product on the BitMEX platform and its perpetual contract “XBTUSD” is one of the most liquid cryptocurrency derivative contracts in the world.

This exciting launch will unlock new trading strategies and improve the versatility of BitMEX as a whole. This is all part of BitMEX’s ongoing goal to provide existing and new users with a wider range of crypto margin contracts, including products that will give traders access to a range of currencies and commodities.

Alexander Höptner, CEO of BitMEX, said, “The launch of our FX perpetual swap marks another step in our journey to create a vibrant crypto ecosystem for our clients. At BitMEX, we are focused on facilitating trade while continuing to develop innovative new products to complement our existing suite of features, ultimately providing our customers with an even more seamless experience.

The FX Perpetual Swap is a product designed for retail and institutional users. Previously, retail currency trading was mainly possible via CFDs (contract for difference). So, for the first time, retail users and institutional traders can access the forex markets through an exchange-traded contract.

Mr. Egloff noted that today there is a large gap between XBTUSD and other pairs like XBEUR, which is not easily capitalized due to the need to link the crypto and spot FX markets: bank transfers and is operationally difficult. This type of arbitrage is now greatly simplified with FX perps, all within the cryptocurrency ecosystem. Another use case is to hedge the inherent USD risk that comes with long exposure to crypto, as most cash is quoted in USD or stablecoins tracking USD,” he says.

BitMEX’s FX Perpetual Swap is the exchange’s latest product innovation. On the derivatives side, BitMEX now has 57 contracts on 24 different underlying cryptocurrencies. The launch of FX Perpetual Swaps is another milestone for BitMEX as it continues to expand its product line. The recent launch of its spot exchange with the first seven crypto-to-crypto pairs – with more to come soon – has helped ease the entry of new retail and institutional clients into the spot trading space.

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