Huobi’s cryptocurrency derivatives market trading platform, Huobi DM, has reportedly seen its “cumulative trading volume” surge to over $50 billion since its beta version was introduced in December 2018.
In a press release shared with CryptoGlobe, Huobi Global’s CEO, Livio Weng, noted:
The desire to go both long and short in a volatile market has certainly helped fuel our growth but so has Huobi DM’s ever-expanding list of contract types, the fact that we’ve managed to keep a record of zero clawbacks since launch, and, of course, the continued support and loyalty of both retail and institutional traders – especially market makers.
According to Huobi DM’s management, the crypto trading platform has not “issued a single clawback” since it was launched. Moreover, Huobi’s development team has reportedly been working to improve the overall efficiency and functionality of its digital asset-based derivatives trading platform.
Future Upgrades To Provide “Options For Arbitrage, Speculation, Hedging”
As mentioned in Huobi’s announcement, the platform’s developers will add “trigger order functionality” to the exchange at some point later this year. This will reportedly “allow users to automatically open and close trades” – based on specific market conditions. Other features expected to be introduced during “Q1 and Q2 of 2019” include “websocket functionality” – which is described by Huobi as “a bonus feature” for traders who access their platform through an API.
As explained by Huobi’s management, the Huobi DM gives users the option to enter long and short positions on bitcoin (BTC), ether (ETH), EOS, and litecoin (LTC). Huobi is also planning to launch XRP derivative contracts so that users can long or short it in the near future. Introducing XRP-based derivatives will also provide users the “options for arbitrage, speculation, and hedging.”
Risk Controls, Real-Time Risk Supervision
According to Huobi’s press release, “20% of the income generated by Huobi DM” is used to buyback the Huobi Token (HT), which is the native cryptocurrency used on Huobi’s exchanges. As noted by Huobi, its derivatives markets platform provides “superior risk management” features such as “price limit, order limit, and position limit.”
Other features to be added to Huobi DM include:
- Improved “risk control: with advanced “price limit mechanism”,
- “Real-time risk supervision: constantly monitor contract prices, index prices, abnormal transactions, and positions”,
- “Newly raised open position limits for all crypto contracts to up to twice their previous level”,
- “User protections: 20,000 BTC Huobi Security Fund to protect users against catastrophic security failures … dedicated Risk Management Insurance Fund for each trading pair against unfilled liquidation order losses”