Singapore’s Huobi Crypto Exchange Launches Derivative Market (DM) Platform
Singapore Based Huobi Exchange Launches Derivative Market Platform
At the Cryptofrontiers conference in New York, Huobi presented their platform Huobi Derivative Market (Huobi DM). They especially stressed that this platform allows the user to engage in a cryptocurrency contract trading, during both rise and fall of the cryptocurrency price. The platform has been purportedly implemented with the hedging, uncertainty, and risk controlling tools.
Commenting on the launch, General Counsel of the company’s Global Institutional team, Joshua Goodbody, said:
“Cryptocurrency is a rapidly expanding and maturing market. As part of that maturation, we see more and more sophisticated investors and traders from more established financial markets looking to gain exposure, including institutional players. At the same time, we think many experienced, successful cryptocurrency traders are looking for a broader range of investment tools that have traditionally been available. Huobi DM is tailor-made to address these sorts of needs.”
Huobi DM grants flexible leverage opportunities (1X, 5X, 10X, and 20X), as well as strong risk management protocols. The platform further offers zero trading fees for market makers and investor protection which includes a 20,000 BTC insurance fund against all forms of losses.
“Our derivative contracts are agreements to buy or sell an asset on a specific future date and at a specific price. Once the derivative contract has been executed, both counterparties will buy and sell at the agreed-upon price irrespective of the actual market price.”
Huobi DM is currently in beta testing mode, and its services are unavailable to users in the U.S., Singapore, Israel, Cuba, Iran, North Korea, and Syria. Goodbody says,
“We are taking things slowly, but we are working with our lawyers and the relevant regulatory authorities to assess the requirements in each jurisdiction, and we will take the necessary steps required to offer this in a compliant manner.”
Market makers on the platform pay absolutely no trading fees while utilizing Huobi’s services and are entitled to financial bonuses granted they always trade as makers. Goodbody concluded by saying:
“We look to the future and will always bring our clients with us on this journey. This is another exciting and important development for our global business.”