Popular cryptocurrency exchange Huobi has recently revealed at the Cryptofrontiers conference in New York that its cryptocurrency contract trading platform Huobi Derivative Market (Huobi DM) is now in a Beta testing phase.
According to a press release shared with CryptoGlobe, the platform is set to give cryptocurrency traders in selected countries the ability to open long and short positions on bitcoin (BTC) and other cryptocurrencies at predetermined prices at specified times.
The document touts that it will also allow users to use advanced tools to hedge their positions and control the risk and uncertainty often associated with cryptocurrency trading. These advanced tools will presumably allow traders to control their positions properly, despite the volatility.
Joshua Goodbody, the General Counsel of Huobi’s Global Institutional team, was quoted as saying that the cryptocurrency market is a rapidly expanding and maturing one, and added that:
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 than has traditionally been available. Huobi DM is tailor-made to address these sorts of needs.
The press release notes that while similar services already exist in the cryptocurrency space, Huobi’s platform sets itself apart over “superior risk management” and “investor protections” that include a 20,000 BTC insurance fund that’s set to protect users against “catastrophic security failures.”
On the cryptocurrency contract trading platform, market makers are set to not pay any fees and get financial bonuses. All of the platform’s users will be able to trade with up to 20x leverage, on what the company claims is a matching engine with superior speed compared to the market’s average.
The platform is currently still in a Beta testing phase, and won’t be available to users in certain countries, including the United States, Singapore, Israel, Iran, North Korea, Bangladesh, Ecuador, and Kyrgyzstan.
As CryptoGlobe has been covering Huobi has been moving to innovate in the space. Earlier this year it launched a cryptocurrency-based exchange-traded fund (ETF). Moreover, it has added several stablecoins to its platform. Back in June, Huobi invested $100 million in a project that was set to allow it to become a decentralized platform.