One of the leading crypto trading platforms – Huobi – announces new crypto trading business dealing with derivatives Huobi Derivative Market (Huobi DM). The new platform is now available in beta.
According to the notice on the company website, the new platform Huobi DM offers one-, two- and quarter-contracts.
"The Huobi DM Contract adopts spread delivery. When the contract expires, all open positions will be closed at the index-based last-hour arithmetic average price, instead of physical delivery," note the company.
The first derivative offered by the exchange is a bitcoin contract "accounted in USD", with profit/loss is settled in cryptos (BTC in that case).
Every contract is said to be valued at $100. According to the released information, the company has set the following settlement dates: weekly contracts – imminent Friday, two-week – next Friday and quarterly ones – last Friday of March, June, September and December.
Meanwhile, users can benefit the leverages on the platform – 1x, 5x, 10x and 20x. A client initially sets the required leverage and then can open positions. The leverage cannot be changed later if a user has an opened position.
The company explained:
"For example, if users choose BTC weekly contract with 10x leverage, users can take 1 BTC as the margin to open long/short 10 BTC positions."
Earlier, DFID.org reported that Huobi launched a unit in China to cooperate with the Chinese Communist Party as the local regulation requires.