Phemex, a Singapore-based cryptocurrency derivatives exchange, has launched a proprietary perpetual contract pegged on gold, Leveraged GOLD and settled in nominal USD to hedge bitcoin risk. This is the first GOLD/USD perpetual contract that can be traded with up to x100 leverage.
This novel product was introduced in order to help users hedge their risk with as many options as possible in the context of Bitcoin’s recent volatility. Perpetual contracts trade at close to the underlying market price for bitcoin, because of a funding mechanism that requires long and short contract holders to exchange payments every eight hours.
Jack Tao, Chief Executive Officer at Phemex, commented: “This is just the beginning for non-crypto assets on the Phemex platform, the roadmap for 2020 includes stock indexes, interest rates, FOREX, commodities, other metals, and energy resources.”