Huobi DM to Launch Perpetual Contracts in Cryptocurrency in Q1 of 2020
Huobi DM, the digital asset derivative trading arm of Huobi will launch perpetual contracts in the first quarter of 2020, to mark its first anniversary. Perpetual contracts are similar to a futures contract but do not have any settlement or expiry date.
Huobi DM’s volume of daily transactions has reached $2.1 billion. The daily average volume between October 1 and November 15, 2019, crossed $2.5 billion. For BTC contracts, its average daily volume has crossed $1.5 billion. On October 26, an all-time peak was seen for both DM and BTC contracts, with $9.9 billion and $6.7 billion, respectively.
Huobi DM is a pioneer in applying advanced investing instruments like derivatives to the cryptocurrency market. It offers futures contracts, forward contracts with cryptocurrency as the underlying asset. To ensure that the underlying cryptocurrency asset at least has a semblance of stability, it lists only top cryptocurrencies. As it deals in complex financial instruments like derivatives, it will attract institutional investors and other high net worth individuals who have at least some knowledge about these instruments or who can pay advisors who can explain to them how these instruments work, especially with cryptocurrencies as the underlying asset.
The response to Huobi DM shows that big investors are ready to back cryptocurrency and with their investment lend stability to cryptocurrencies
VP of Huobi Group, Jason Lan, said,
The wealth of products added to Huobi DM reflects the overall strength of the platform… Our platform will expand to more diverse markets and add more product types, with perpetual contracts are just a start. With more languages and markets, we can have more localized offices and events.
He explained the new features that Huobi was adding, like the Sentiment Index function, which helped users in making more informed investment decisions by providing them open interest, liquidation, and long and short data. Huobi is also tweaking its API to offer more order types, for example, advanced limit orders.
Huobi lists BTC, EOS, ETH, BCH, LTC, XRP, TRX, BSV, ETC Cryptocurrencies.
Huobi DM is available in Chinese, English, Russian, Vietnamese, Turkish, and Korean languages.
Huobi is one of the world’s leading cryptocurrency exchanges. Millions of users in over 130 countries use their platform for trading in cryptocurrency.