LONDON, Aug. 31, 2020 /PRNewswire/ — On August 31st, Huobi Futures, the crypto derivatives market of Huobi Group, introduced that Bitcoin (BTC) choices can be launched for buying and selling at 10:00 on September 1st. The new choices product follows the profitable roll-out of Huobi Futures’ Perpetual Swaps earlier this yr and goals to present merchants extra methods to create arbitrage and hedge threat within the crypto market.
Similar to choices in conventional monetary markets, Huobi’s BTC possibility is a by-product product that provides choices consumers the correct, however not the duty, to purchase or promote BTC at an agreed upon worth and date. Call choices give the choices purchaser the correct to purchase the underlying asset at a specified worth on the expiration date, whereas put choices give choices purchaser the correct to promote a specified quantity of an underlying asset at a specified worth on the expiration date.
“As investors brace for prolonged economic uncertainty across global financial markets, the influx of institutional capital and other forms of ‘smart money’ into digital assets like Bitcoin are driving a surge in demand for more diverse trading products,” mentioned Ciara Sun, Vice President of Global Business at Huobi Group. “Our new options product was launched in response to market demand and this economic new reality. With this latest addition to our growing lineup of derivative products like Perpetual Swaps and Futures, we’re giving users a robust set of tools to execute more sophisticated trading strategies.”
Huobi’s exchange-traded BTC choices are quoted in USDT and provided in increments of weekly, bi-weekly, and quarterly choices. Options on Huobi are European Options, a model of an choices contract that limits execution to its expiration date. When the choices expire, the arithmetic common of the index costs within the final hour is used because the supply worth. Both the choices purchaser and vendor can shut positions earlier than the expiry or maintain till the expiration date.
As extra refined buyers enter the crypto market, Huobi has skilled a surge in derivatives buying and selling quantity, which is indicative of the broader market. In the combination, progress in crypto derivatives buying and selling quantity is now outpacing that of spot buying and selling. According to information analytics firm CryptoCompare, cryptocurrency derivatives buying and selling volumes climbed 32% in May of this yr to a brand new report excessive of $602 billion, in comparison with 5% progress in complete spot buying and selling volumes.
With the surge in derivatives buying and selling, choices can present decrease threat as the utmost loss an choices purchaser can incur is the choices Premium, with no restrict on good points. When used at the side of different buying and selling methods, choices may assist merchants hedge in opposition to dangers like excessive market volatility. Sun added, “Financial instruments like options don’t guarantee profits, but they do provide traders with greater flexibility and more opportunities. More importantly, we’re giving users access to an options product backed by the security and reliability they’ve come to expect from a global exchange like Huobi.”
In the approaching months, Huobi Futures plans so as to add choices help for different main cryptocurrencies.
About Huobi Group
Huobi Group is the world’s main blockchain and cryptocurrency infrastructure supplier with a monetary product suite that features the biggest digital asset change by liquidity and real-trading quantity. Trusted by customers over 170 international locations, the Huobi platform is devoted to bettering the liberty of cash for customers, and options an unmatched portfolio of crypto merchandise and choices, together with: buying and selling and finance, cryptocurrency finance infrastructure options, training, information and analysis, social welfare, funding and incubation, and lots of extra. For extra info, go to https://blog.hbg.com/
SOURCE Huobi Futures