Blockchain Cryptocurrency General News

Huobi Announces a Derivative Market Platform



Huobi Announces a Derivative Market Platform

The third-most popular crypto exchange by trade volume (according to CoinMarketCap), Huobi, has recently launched the Huobi Derivative Market, or Huobi DM. According to the Huobi team, the new platform will allow individuals to sell or purchase cryptocurrencies “at predetermined prices at specified times in the future.” Thus, investors can decide whether they want to open short or long term positions.

The first derivative on the platform is the BTC contract, though there will be a variety of contracts. Other derivatives are yet to be announced.

Contract settlement is set to occur either weekly, biweekly, or quarterly, this depends on the choice of the investor, and is based on Singapore time (UTC+8). Also, each contract equals a specified amount of cryptocurrency (for instance, the face value of a BTC contract, is $100).

As we all know, the derivative market is not an alien concept in the cryptospace (e.g., Japan’s SBI Holdings reportedly acquired 12 percent of Clear Markets, a US-based derivative trading service, as part of an effort to create a cryptocurrency derivative trading platform), but Huobi DM does feature some accoutrements. For instance, the platform enables users to choose their preferred leverage multiplier (1x, 5x, 10x, or 20x). Furthermore, Huobi is also providing “surprises” to its early traders, including the ability to receive Huobi Tokens based on certain activities.

As at now, the Huobi DM is still in the beta testing phase and is unavailable to residents of multiple countries and territories: the US, Israel, Iraq, Hong Kong, Cuba, Iran, North Korea, Sudan, Malaysia, Syria, American Samoa, Puerto Rico, Guam, Bangladesh, Ecuador, Kyrgyzstan, and Singapore.


About the author

mm

Jimoh Abdullahi

An Engineer (B.Eng, M. Eng Biosystems Engineering) and freelance writer. Stacey covers cryptocurrency, the Blockchain technology, and ICT topics. It’s my joy to transform the simplest phrases in a way they reach a reader’s heart to help them discover how technological advancement is disrupting the world as we have known it.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *


Subscribe

Subscribe to get the latest cryptovevo news!