November 29, 2018 7:24 PM
The Singapore-based exchange is offering an additional investment service.
Huobi, the third-most popular cryptocurrency exchange by trade volume (according to data from CoinMarketCap), recently launched the Huobi Derivative Market, or Huobi DM. The new platform will, according to the Huobi team, allow individuals to purchase or sell cryptocurrencies “at predetermined prices at specified times in the future.” Thus, investors can decide whether they want to open long or short positions.
The first derivative on the platform is the BTC contract, though there will be a variety of contracts. Other derivatives have not been announced yet.
Contract settlement is set to occur weekly, biweekly, or quarterly, depending on what the investor chooses, and is based on Singapore time (UTC+8). Also, every contract equals a specified amount of cryptocurrency (the face value of a BTC contract, for example, is $100).
A derivative market is not a new 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 gives users the ability to choose their leverage multiplier (1x, 5x, 10x, or 20x). Further, Huobi is providing “surprises” to its early traders, including the ability to receive Huobi Tokens based on certain activities.
Currently, Huobi DM is in beta testing 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.
ETHNews does not endorse Huobi DM or any other cryptocurrency-related investment platform.
Daniel Putney is a full-time writer for ETHNews. He received his bachelor’s degree in English writing from the University of Nevada, Reno, where he also studied journalism and queer theory. In his free time, he writes poetry, plays the piano, and fangirls over fictional characters. He lives with his partner, three dogs, and two cats in the middle of nowhere, Nevada.
Like what you read? Follow us on X @Bitnewsbot to receive the latest Huobi, Huobi DM or other Ethereum wallets and exchanges news.
Previous Articles:
- AriseBank CEO Arrested Over Securities And Wire Fraud Involving Crypto
- Floyd Mayweather And DJ Khaled Settle SEC Charges
- Federal Court Denies SEC’s Motion For Preliminary Injunction In Blockvest Matter
- WTO: Blockchains Could Add $1 Trillion To World Trade By 2030
- Plattsburgh’s Crypto Moratorium Questioned
