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.