41showTime&OKEx: Opportunities and challenges of digital derivatives in the low-interest financial market environment

On the occasion of 41 Finance’s second anniversary, 41 Finance launched 41 Show Time, an online AMA. The first one will be held on April 14. 41 Finance specially invited Tina, Regional Development Director of OKEx, to be a guest in the 41 Finance live broadcast room.

(Tina, Regional Development Director of OKEx)

Tina talked in detail in the live broadcast room: the opportunities and challenges of digital derivatives in the low-interest financial market environment. In addition to the live broadcast of this AMA in the 41 Finance community, we also thank 20 media strategies including Shilian Finance, Lianhu Finance, Lian'an Finance, Qiqi Home, Maitian Finance, Bizhi Finance, Yideng Community, Lianshiji Finance, Star Vision, Lieyun Finance, Ant Chain Finance, Bicheng Times, Xiyou Finance, Wansha Information, Yunhe Finance, Blockchain Bus, Bitao, Bipu, Walle Finance, and Shuanghua Finance for the community broadcast.

|AMA content|

Question

01

Shanhai?: Virtual currency has gone through twists and turns over the past decade. I would like to ask Tina what you think about the global trend of the encryption ecosystem?

Tina?: In the past ten years, virtual currencies have seen a bull market that has grown tens of thousands of times, led by Bitcoin. By February and March of this year, more than 30 countries around the world have gradually opened up restrictions on the Bitcoin market. I think this will be more conducive to the global expansion of crypto assets represented by Bitcoin.

Digital asset contracts are divided into futures contracts and options contracts. Since their inception, financial derivatives have been considered an effective tool to reduce market economic risks and stabilize international trade exchange rate risks. Compared with many products that are not sustainable as a means of operation, digital asset financial derivatives are a long-term "weapon" in the trading arena.

At present, in the derivatives market alone, exchanges have formed a differentiated competitive landscape. According to statistics, the total nominal trading volume of 25 exchanges in 24 hours exceeded 27.533 billion US dollars. Among them, the total nominal trading volume (in US dollars) on OKEx, Huobi, BitMEX, Binance, and Deribit accounted for 73% of the total, and the "28 effect" was significant. Among them, the trading volume of OKEx futures contracts this year has exceeded Bitmex and has taken the top trading position.

Question

02

Shanhai?: As more and more competitors enter the derivatives market, what is OKEx's winning formula?

Tina?: If we only buy and sell spot goods, the risk is still uncontrollable when a one-sided market comes. In the process of spot investment, in addition to grasping the timing and trends, we can also appropriately allocate funds for some derivative transactions.

There is a saying: Holding coins in a Buddhist way almost led to nirvana. Investing in a purely Buddhist way may not be an absolutely safe way in the future trend of the cryptocurrency circle, unless you have a lot of assets. The risk of pure hoarding of coins will be reflected in the extreme decline of the market.

The investment model of simply increasing leverage is very common. It is recommended that you control your positions in high-leverage transactions. For example, if 70% of my funds are placed in other positions, then when the big market comes, at least you can save the losses of some current extreme market agents through compensation.

The investment logic of bull and bear markets is completely different. For example, when we are investing in risky investments, if we are investing in contracts, we can consider investing in this 30% position. As for the margin issue, we should not open margins at 20 or 30 times. I hope everyone will firmly abide by these basic concepts.

(Broadcast by 20 strategic media outlets)

Question

03

Shanhai?: What is the layout of OKEx derivatives this year?

Tina?: OKEX's full-cycle and global vertical and horizontal strategy. With users at the core, we have a deeper level of depth and focus on the user's full life cycle. In terms of the depth of business transactions, including the breadth of the crypto asset ecosystem, we provide a full life cycle service line for users, including the purchase, trading, and financial management of crypto assets, to serve every user well.

With the global market as the territory and global layout, OKEx made a strategic positioning of global layout last year. We want to truly go global. "True globalization" means that your products must be localized in each country, and first of all, the products must serve local users well.

Question

04

Shanhai?: For traders, how to balance the risks and opportunities brought by derivatives?

Tina?: If we only buy and sell spot goods, the risk is still uncontrollable when a one-sided market comes. In the process of spot investment, in addition to grasping the timing and trends, we can also appropriately allocate funds for some derivative transactions.

There is a saying: Holding coins in a Buddhist way almost led to nirvana. Investing in a purely Buddhist way may not be an absolutely safe way in the future trend of the cryptocurrency circle, unless you have a lot of assets. The risk of pure hoarding of coins will be reflected in the extreme decline of the market.

The investment model of simply increasing leverage is very common. It is recommended that you control your positions in high-leverage transactions. For example, if 70% of my funds are placed in other positions, then when the big market comes, at least you can save the losses of some current extreme market agents through compensation.

The investment logic of bull and bear markets is completely different. For example, when we are investing in risky investments, if we are investing in contracts, we can consider investing in this 30% position. As for the margin issue, we should not open margins at 20 or 30 times. I hope everyone will firmly abide by these basic concepts.

(Benefits during the live broadcast: OKB and OK exquisite sweatshirts)

Question

05

Shanhai?: What is OKB’s recent ecological layout?

Tina?: The ecological construction around OKB includes three dimensions: platform-enabled scenarios based on OKEx, external application scenarios based on external partners, and expansion of trading channels. So far: 13 platform-enabled scenarios have been expanded; 33 external application scenarios have been expanded; more than 40 trading channels have been expanded, including 8 fiat currency trading channels.

External application scenarios, through the construction of OKB ecosystem, we have reached strategic cooperation with more external partners, and become the co-builder of OKB ecosystem, empowering OKB with more usage scenarios and value support. Currently, there are 33 ecological partners of OKB, serving users in dozens of countries including the United States, the United Kingdom, Germany, South Korea, Japan, Russia, Singapore, Indonesia, etc., covering dozens of important fields such as payment, trading, market software, wallets, lending and financial management, technical security, tourism, life services, entertainment, social networking, electronic contracts, O2O, etc.

Trading channel expansion is an important "living water" for OKB's ecological construction, and it is also an important channel to connect users and platforms. Currently, there are more than 40 currency-to-currency trading channels and 8 fiat currency trading channels around OKB, involving multiple mainstream countries and regions such as the US dollar, euro, Korean won, Vietnamese dong, and Indonesian rupiah.