On Wednesday (March 27), cryptocurrency exchange Huobi Global announced that Huobi’s contract trading platform, Huobi Derivative Market (“Huobi DM”), would be launching XRP futures contracts on March 29th.
Huobi DM was launched (in beta testing mode) on 28 November 2018. Huobi said at the time that being able to sell cryptocurrencies “at predetermined prices at specified times in the future” gives “investors and traders the ability to open both short and long positions, as well as more advanced tools for hedging positions and controlling risk and uncertainty.”
Here is Joshua Goodbody, General Counsel of Huobi’s Global Institutional team, talking about the motivation behind creating Huobi DM:
“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 than has traditionally been available. Huobi DM is tailor-made to address these sorts of needs.”
Back then, Huobi also explained the key features of Huobi DM:
- “Superior risk management: including multiple limits for risk management and 24-hour monitoring.”
- “Investor protections: including a 20,000 BTC insurance fund to protect users against catastrophic security failures, a dedicated insurance fund for each trading pair against unfilled liquidation order losses, and a circular break mechanism that helps protect users from unnecessary forced liquidations.”
- “Fee structure: market makers pay no trading fees and get financial bonuses (when trading as a maker).”
- “Leverage flexibility: Huobi DM offers 1X, 5X, 10X, and 20X leverage.”
- “Speed: high memory and 10X matching speed compared to market average speed.”
Initially, Huobi DM only offered contracts for Bitcoin (BTC) and Ether (ETH). On 28 December 2018, EOS contracts were introduced, and on 25 January 2019, contract trading for Litecoin (LTC) went live.
Earlier today, Huobi announced that Huobi DM will launch weekly, bi-weekly, and quarterly XRP contracts at 10:00 UTC (18:00 SGT) on March 29th. Here are the full details of this product:
All Images Courtesy of Huobi