Huobi Derivative Market (Huobi DM) is now live for selected countries. The platform allow cryptocurrency contract trading – along with a comprehensive suite of other sophisticated digital asset trading services.
#HuobiDM was announced today by General Counsel of our Global Institutional Team @JoshGoodbody, at the Cryptofrontiers conference in New York City. #HuobiGlobal pledges to buyback #HuobiToken with 20% of Huobi DM’s quarterly revenue, as with other Huobi Global products. pic.twitter.com/eA9yLjQBCH
— Huobi Global (@HuobiGlobal) November 29, 2018
Huobi DM users has the ability to buy or sell Bitcoin (BTC) and other cryptocurrencies at predetermined prices at specified times in the future. It means users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment.
“Cryptocurrency is a rapidly expanding and maturing market,”
said Joshua Goodbody, General Counsel of Huobi’s Global Institutional team.
“As part of that maturation, we see more and more sophisticated investors and traders from more established financial markets looking to gain exposure, including institutional players. At the same time, we think many experienced, successful cryptocurrency traders are looking for a broader range of investment tools than has traditionally been available. Huobi DM is tailor-made to address these sorts of needs.”
According to an official press release Huobi DM stands out itself because of:
- Superior risk management: including multiple limits for risk management and 24-hour monitoring.
- Investor protections: including a 20,000 BTC insurance fund to protect users against catastrophic security failures, a dedicated insurance fund for each trading pair against unfilled liquidation order losses, and a circular break mechanism that helps protect users from unnecessary forced liquidations.
- Fee structure: market makers pay no trading fees and get financial bonuses (when trading as a maker).
- Leverage flexibility: Huobi DM offers 1X, 5X, 10X, and 20X leverage.
- Speed: high memory and 10X matching speed compared to market average speed.
The Cryptofrontiers conference was a closed-door event focusing on trends and investments in the crypto-space, as well as the development of blockchain technology, and panel discussions by industry experts. In addition to Huobi representatives, it was attended by venture capitalists and members of the blockchain industry.
Huobi DM is currently in Beta testing mode, and is not available to users from the United States of America, Singapore, Israel, Iraq, Hong Kong (China), Cuba, Iran, North Korea, Sudan, Malaysia, Syria, Samoa Eastern, Puerto Rico, Guam, Bangladesh, Ecuador and Kyrgyzstan.
Introduction of Huobi DM and Keynotes
The Huobi DM Contract adopts spread delivery. When the contract expires, all open positions will be closed at the index-based last-hour arithmetic average price, instead of physical delivery.
BTC Contract is the first launched kind of contract at Huobi DM. It is accounted in $, with corresponding digital currency( BTC) as margin, and users’ profit and loss settlement is also conducted in corresponding digital currency( BTC).
Contract Face Value
Each contract represents a certain amount of digital currency.
The face value of a BTC contract is $100 and the minimum price change in order book is aggregated to $0.01. For other contract varieties, unless stated, the face value of other contract varieties shall be $10 and the minimum price change in in order book are aggregated to $0.001.
Weekly, bi-weekly and quarterly contracts are available in Huobi DM.
Weekly contracts will be settled on imminent Friday;
Bi-weekly contracts will be settled on next Friday;
Quarterly contracts will be settled on the last Friday of March, June, September and December.
Choices of leverage:1x, 5x, 10x, 20x
For example, if users choose BTC weekly contract with 10x leverage, users can take 1 BTC as the margin to open long/short 10 BTC positions.
Before opening a position, users need to select the leverage. Once the leverage is selected, the weekly, bi-weekly and quarterly contracts should all use the same leverage. Users cannot change the leverage unless they hold no position and have no pending orders.