The crypto derivatives market grew rapidly in 2020 with annual trading volume reaching USD12,31 trillion, an increase of 402 per cent from 2019. Huobi Futures noted that in 2020, a year ravaged by the Covid-19 pandemic, USD2.3 trillion was traded on the exchange. According to figures from TokenInsight, it is now the largest derivatives exchange by annual trading volume.
The crypto derivatives market grew rapidly in 2020 with annual trading volume reaching USD12,31 trillion, an increase of 402 per cent from 2019. Huobi Futures notes that in 2020, a year ravaged by the Covid-19 pandemic, USD2.3 trillion was traded on the exchange. According to figures from TokenInsight, it is now the largest derivatives exchange by annual trading volume.
The derivatives market on Huobi has proven to be a popular and robust trading platform at a time where this style of trading in cryptocurrencies has become increasingly popular. Marching alongside a steadily increasing price in Bitcoin, and other cryptocurrencies, Huobi Futures has kept pace with the needs of the market.
Huobi Futures has looked to keep in touch with the wants and needs of traders in order to offer a service that is robust, flexible, and easy to use. This has seen a number of different products and trading innovations launched.
From Coin-margined swaps to USDT-quoted options and coin-margined bi-quarterly futures, Huobi Futures offered improved services that lead to a new all-time high in 24-hour volume of over USD28 billion on Nov. 26th.
Coin-margined Futures was the first product of Huobi Futures. Launched in December 2018, its trading volume has sustainably ranked first in the derivative market in only eight months. At present, Huobi’s coin-margined futures trading has included 13 major crypto assets with a unilateral trading volume of USD1.32 trillion in 2020.
Following the introduction of our first flagship product coin-margined futures, coin-margined swaps launched on Mar. 27, 2020 and exceeded BitMEX, the largest coin-margined swaps exchange at that time, in 45 days. Its annual trading volume reached USD785.5 billion in 2020 and it has covered 57 mainstream currencies, including a wealth of DeFi currencies for users to choose from.
In September last year, Huobi launched USDT-quoted options whereby users could trade without worrying about the risk of liquidation.
The fourth product USDT-margined swaps. Launched in Oct. 26, 2020 its trading volume has grown rapidly with its cumulative trading amount exceeding USD177.8 billion in just two months. The launches of USDT-margined swaps opened doors for institutional investors to run their market-making strategies without bearing the huge cost for buying cryptocurrencies or the high interest rate for lending, which in turn bring more trading volume to the exchange and the crypto ecosystem.
Huobi Futures is the first digital asset derivatives exchange in the industry that supports a three-phase liquidation protection mechanism and no transaction fees will be charged in partial liquidation. The platform uses Exponential Moving Average (EMA) as a second reference for forced liquidation and has prepared 20,000 BTC as security funds. For each trading pair, there is also a certain amount of insurance fund prepared. Besides, there are price limits, order limits, position limits and real-time monitoring to protect users from market manipulation.
Due to its strong risk control system, the platform holds a record of zero clawback for 752 days since its launch in December of 2018. In version V6.3.0, the system has a throughput of 10W+, the response speed of placing and canceling orders is within 6ms, and the link delay is within 25ms.
Huobi Futures supports multiple order types including Limit Order, Trigger Order, IOC and FOK. To improve the asset utilisation and to reduce trading cost, Huobi introduced lots of innovative features like locked margin mechanism, take-profit and stop-loss, real-time settlement, Follow a Maker & Taker, etc.
Huobi Futures also designed the “Switchable Leverage When Holding Positions” function for its coin-margined positions. With no need to close positions first, users can switch leverage with positions holding as long as there is no open order. All these exciting functions empower both institutional and retail traders to fetch out maximum benefits in derivatives trading.
Due to the fact that most exchanges require at least hundreds of BTC to be traded per month to reach their VIP standard, many traders have been rejected by these platforms to get a VIP when the annual increase in bitcoin price has risen by 400 per cent.
On Huobi Futures, as long as you have assets worth of 30,000 USDT in Huobi Futures account, you will be qualified for VIP. In addition to that, Huobi introduced an upgraded VIP Sharing Program, that is, VIPs of any other exchanges are considered as Huobi Futures VIP+1. Users could provide certificates of VIP level on other platforms to apply for a VIP+1 level on Huobi Futures for coin-margined swaps and coin-margined futures trading.
