Huobi Derivatives Market to Welcome Litecoin (LTC) Contracts to Launch Today
Litecoin is one of the biggest crypto coins in market capitalization. It is going to be the forth crypto added to the Huobi Derivatives Market. Other coins already listed are ETH, EOS, and BTC. LTC contracts will launch on January 25 at 18:00 PM SGT. A month ago, despite the market downturn, Huobi was able to declare an eye-watering $1 billion in trading volume.
— HuobiGlobal 🌏 (@HuobiGlobal) January 23, 2019
LTC Contracts In Less Than 24 Hours
According to coinmarketcap, Huobi has a market cap of about $285 million. The launch of these LTC contracts could help to boost its standing in the crypto world.
The exchange revealed the news of the launch on Twitter. In the tweet, Huobi said that the new contract for the LTC coin would be based on the LTC/USD index, which covers the price of LTC from four exchanges. These exchanges are Gdax, Kraken, Bitstamp, and Huobi. Each of these exchanges will have an equal share in the soon-to-be-launched index. The tweet also said that the price quotation unit and the contract multiplier being 1 USD/point. It was also mentioned that the minimum price change would be the 0.001 points.
The exchange further elaborated on the LTC contracts. According to them, there would be three types of LTC contracts. These are the weekly, bi-weekly, and the quarterly, which would have a 10 USD face value. Huobi has offered a minimum margin for the 1x leverage at 10%, the 5x is set at 20%, and the margin for the 10x is set at 10%. For the 20x leverage, the margin is 5%.
Users will be able to continue trading until the last 10 minutes before delivery. However, this will only be allowed for those closing positions. The delivery date is set at 16:00 PM (UTC+8) of the Friday prior to the expiration week of the contract.
The fees have been set at 0.02% for the open position makers and 0.03% for the takers. This fee will also apply for the closed position takers and makers. At the same time, the delivery fee rate is set at 0.05% while contracts are settled in the price difference of the digital assets.
Other Planned Altcoin Contracts
The platform lets traders trade contracts for digital coins with the aim of hedging, speculation, and arbitrate. LTC will now be the fourth coin added to this market. It is expected that Huobi will launch other contracts after this.
While trading volumes are falling in other crypto exchanges, volumes on the exchange are on the rise. One reason why the exchange might have become so popular is that participants in the crypto market are seeking ways to control risk in the current volatile climate. It is especially so for experienced market traders who already have a good grasp of how the fiat derivatives markets work.