Huboi Digital Asset and Cryptocurrency Exchange Launches Derivative Market

Huobi Derivative Market

Huboi, a third largest cryptocurrency, and digital asset exchange announced the launch of Huboi Derivative Market (DM) at Cryptofrontiers conference in New York City. Singapore based cryptocurrency exchange platform has been developing required infrastructure to support Huobi Derivative Market.

With this announcement, Huboi trying to capitalize on the growing interest cryptocurrency industry. As of now, Huobi DM is in Beta testing mode. It also listed countries where Huboi DM services are not available. The United States of America, Singapore, Israel, Iraq, Hong Kong (China), Cuba, Iran, North Korea, Sudan, Malaysia, Syria, Samoa Eastern, Puerto Rico, Guam, Bangladesh, Ecuador, and Kyrgyzstan will not able to participate into Huboi Derivative Market.

Notably, there are many existing cryptocurrency derivative marketplaces or exchanges. OKEx, BitMEX, Deribit, Delta Exchange, Quedex, eToro are the ones who support cryptocurrency derivatives.

Cryptocurrency contract trading will allow Huobi DM users the ability to buy or sell Bitcoin (BTC) and other cryptocurrencies at predetermined prices at specified times in the future. Among other advantages, this gives investors and traders the ability to open both short and long positions. Huboi will also provide advanced tools for hedging positions and controlling risk and uncertainty

According to announcment, Huobi Derivative Market (DM) is differentiating itself from crypto derivative market places with,
  • 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 unnecessarily 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.
General Counsel of Huobi's Global Institutional team, Joshua Goodbody, said, "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."

The launch of Huobi Derivative Market is a positive development for the cryptocurrency market when most of the market is trading red. It also shows that crypto companies are still serious about the opportunity that the crypto-industry brings to the table.


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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

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