The Spot Margin trading and Savings service on OKEx have received a huge boost as the leading cryptocurrency exchange platform announced the addition of 19 new assets. The list of new assets available in margin trading pairs starting 21st Feb 2020 includes ADA, ALGO, ATOM, BTM, BTT, ELF, HC, IOTA, IOST, LINK, OKB, OMG, ONT, VSYS, XLM, XMR, XTZ, ZEC and ZIL against BTC or USDT.
The inclusion of new tokens also signifies a milestone for the platform’s own OKB utility tokens which has gained a lot of market attention in recent days, registering a sharp increase in trade volumes. Along with the expansion of supported assets on Spot Margin trading and Savings, the company also launched the new mark price system for margin trading which replaces the earlier used practice of calculating margin ratio with last traded price.
We hear the market and are committed to providing the best user experience for our community. By welcoming new assets, we are expanding the ecosystem, as well as providing more options for people to trade. Spot margin trading is the most accessible entry into the digital asset trading market, therefore, increased flexibility will encourage mass adoption,” said Jay Hao CEO of OKEx.
Among the 19 newly added assets, OKB supports up to 3x leverage at a minimum daily interest rate on borrowing of 0.01%. The interest rate keeps changing as it is calculated dynamically based on changing supply (saving) and demand (borrowing) on an hourly basis. Further, as an initiative to ensure adequate supply of OKB, the platform allows users to make a maximum deposit of 10000 OKB to Savings service.
Similar features are available of the other 18 new assets as well, but at slightly different leverage, interest rates and deposit limits. All the deposits and withdrawals on the platform are executed in real-time.
Mark Price for Margin Trading
The new Mark Price feature is implemented as a part of OKEx’ initiative to reduce instances of market manipulation. Breaking away from the earlier used model for margin ratio using last traded price, the Mark Price is set based on weighted index spot price of an asset across multiple exchanges. This way, any deviation in asset price on one exchange due to any number of factors won’t have a critical bearing on the margin ratio.
According to OKEx, the Mark Price system will protect traders from abnormal liquidations caused by extreme price changes. It will maximize market stability by accounting spot index price and forms a reasonable basis for deciding the price of an asset. From now on, the margin ratio and estimated force-liquidation price will be calculated based on the mark price, thus offering a better estimate of the true value of the asset. It will help traders and the platform avoid unnecessary liquidations due to market manipulation within a short period.