OKX will list perpetual stock contracts for SMH, EWZ, RIVN, DKNG, and RDDT, expanding the range of Derivative products linked to the stock market on its platform.
The new list spans from semiconductor ETFs and Brazilian ETFs to individual stocks like Rivian, DraftKings, and Reddit. For traders, this is an approach to tracking the price movements of a stock or ETF without having to buy the underlying asset.
- OKX adds five new perpetual contracts for both ETFs and individual stocks.
- Perpetual contracts allow trading at a price without owning the underlying stock.
- This product comes with Derivative risks such as funding rate and liquidation of positions.
OKX adds 5 perpetual contracts tied to stocks and ETFs.
OKX will list perpetual contracts for SMH, EWZ, RIVN, DKNG, and RDDT. These are all Derivative products that track the price of the underlying asset, not direct purchases of shares or fund certificates.
Within this group, SMH is the VanEck Semiconductor ETF and EWZ is the iShares MSCI Brazil ETF. The remaining three are individual stocks: Rivian Automotive, DraftKings, and Reddit.
The simultaneous expansion into both ETFs and individual stocks shows that OKX is covering a wider range of trading topics, from semiconductors and emerging markets to electric vehicles, sports betting, and social media.
How do perpetual stock contracts work?
Perpetual stock contracts are Derivative products that allow trading based on the price fluctuations of stocks or ETFs without an expiration date. Traders can open buy or sell positions as long as they meet the margin requirements.
Unlike buying regular shares, this contract does not create ownership of the business. Holders do not receive voting rights or dividends, but only benefit from or incur losses based on price fluctuations of the underlying asset.
This product group sits at the intersection of crypto infrastructure and traditional markets. For users already trading on OKX, it provides an additional approach to financial assets beyond Token and spot crypto.
Risks to be aware of before trading
Perpetual stock contracts carry significantly more Derivative risks compared to buying shares directly. Liquidation of positions can occur if the price moves against the account and there is insufficient margin.
Funding rate is also a cost to monitor. This is a recurring payment between Longing and Short positions to keep the contract price closely tied to the underlying asset, so it can change the cost of holding a position over time.
The available information does not provide details on leverage, margin requirements, or specific funding rate mechanisms for each contract. These terms typically need to be reviewed in person before trading.
The next point investors need to watch is...
Key factors to watch are the official listing date and the specifications of each contract on OKX. Details such as leverage limits, fees, and margin requirements will determine the product's suitability for different user groups.
OKX addition of stocks and ETFs to its portfolio shows that the lines between crypto exchanges and traditional asset trading platforms continue to blur. However, these are still Derivative products with higher risk than spot trading.
Frequently Asked Questions
Which stocks will OKX list?
OKX will list SMH, EWZ, RIVN, DKNG, and RDDT.
What are SMH and EWZ?
SMH is a VanEck Semiconductor ETF, while EWZ is an iShares MSCI Brazil ETF.
Is a perpetual stock contract the same as buying stock?
No. This contract only tracks the price fluctuations of the stock or ETF; it does not create ownership of the underlying asset.
What is the biggest risk associated with this product?
The main risks include liquidation of positions, funding rates, and significant price volatility of the underlying asset.
Summary
OKX addition of perpetual contracts for SMH, EWZ, RIVN, DKNG, and RDDT expands trading options linked to stocks and ETFs, but these are still Derivative products that require careful XEM of risk.
