OKX, a leading cryptocurrency exchange, has announced a change to its funding fee collection mechanism for the remaining group of perpetual futures that it owns. The platform is transitioning from cross-period to current-period finance charge collection in order to provide its users with improved services.
OKX transitions to current-period funding fee collection
The new funding fee calculations will be based on the funding rate of the current funding period, as opposed to the previous funding period. This change is designed to enhance the user experience on the OKX platform.
Understanding Perpetual Futures
Perpetual futures, also known as “perpetual” or perpetual swaps, are derivative contracts that allow traders to speculate on the future price of an asset without the concern of expiration. Unlike standard futures contracts, perpetual futures do not have an expiration date and can be held indefinitely.
In the realm of cryptocurrency trading, perpetual futures are a popular financial instrument used for speculating on cryptocurrencies like Bitcoin and Ethereum, as well as other assets such as commodities and indexes. They offer higher leverage and increased liquidity compared to the spot cryptocurrency market.
OKX’s Global Clientage Expansion Strategy
OKX’s decision to modify its funding fee collection mechanism comes as part of its broader strategy to expand its client base globally.
The exchange recently obtained a regulatory license in Dubai, enabling it to provide bitcoin services to retail customers. Additionally, OKX has forged partnerships with the Australian Olympic Team, McLaren, and Manchester City to attract sports enthusiasts and grow its client base. However, due to regulatory constraints, OKX is currently unable to onboard users from the United States.
