The Futures Volumes Of BCH Is Growing On Crypto Facilities And Huobi’s Derivative Market
The Futures Volumes Of BCH
BCH’s interest in derivative products has significantly increased recently, along with bitcoin spot prices. A few days ago, Huobi also added BCH to its derivative listings and users so that users can short or long the decentralized cryptocurrencies to improve arbitrage and hedging positions. Since launching in quarter four, Huobi DM has performed quite well.
Huobi is also offering BCH contracts and there is a fee structure for BCH as well. The fee structure is at 0.02% for opening or closing makers, and 0.03$ for opening or closing takers. Risk supervision, and monitoring of contract and index prices, transactions, and positions will also be provided by the platform. According to Huobi,
“With our sophisticated price limit mechanisms, no clawback has occurred since its launch. Inclusion on Huobi DM means traders will be able to take both long and short positions on BCH, allowing for arbitrage, speculation, and hedging.”
Since 2017, Bitcoin Cash’s value has fluctuated by $75.08 and $4,355.62.
Kraken Exchange subsidiary Crypto Facilities has also been doing well over the past month when it comes to BCH contracts. According to Sui Chung, BCH contracts were at $50 million in March. Further, Jason Fernandez explained to Bloxlive.tv host, “Retail investors have always been kind of wild card – sometimes they don’t behave rationally and it’s really a hype-driven cycle, whereas institutional investors are more disciplined and have a strategy in place. So if you were paying attention to the futures markets you would see the recent surge from bitcoin cash (BCH) and litecoin (LTC) wouldn’t have been a surprise.” He added, “Bitcoin cash saw roughly $10 million per month and we saw that reflect in the price of bitcoin cash when it jumped up last week by something like 43%. I do believe this is a good way to see which way the smart money is moving.”
BCH markets have been attracting exchanges that are looking to offer their derivatives. Traders who use these markets can swap long and short positions on platforms such as Bitmex, Crypto Facilities, Coinflex, and now Huobi.