Liquid, a Japanese cryptocurrency exchange, is introducing Bitcoin perpetuals with 100:1 leverage ratio. The exchange is the latest one that is adding the Bitcoin product to its platform.
The difference between futures and perpetual contracts is that unlike futures, perpetuals do not have an expiry date. As stated by Liquid, a perpetual contract also does not have interest fees. What happens instead is a funding swap that occurs between the short contracts and open perpetual long ones on the platform.
In addition, Liquid also stated:
When trading perpetual contracts on Liquid you are trading contracts based on the price of BTC. Perpetual BTC contracts are represented by the P-BTC ticker on Liquid.
The products are not in launch phase, yet. However, they are in closed beta stage, and the company has not provided a specific timeline for the start of trading of perpetuals. Traders are invited to test the platform and will also be offered a fee-less month of trading as a promo offer.
With the introduction of the new product, Liquid will not compete with crypto exchange giants such as Huobi and Binance. Liquid is a subsidiary company of the Japanese fintech firm Quoine. The interesting fact is that Liquid is one of the very few exchanges that is valued for over $1 billion.
Another interesting fact is that the Japanese financial regulator is thinking of putting a hard cap of 2x as a leverage ratio on exchanges that offer crypto margin trading services.
Liquid also has a very large client base, and is adding crypto services constantly to cater to its clients’ needs. For example, in 2019, Liquid introduced isolated margin trading, and also was the very first platform to hold the public sale of the Telegram’s ICO – the Gram token – a project that is now postponed.
More about perpetual swaps can be found here: