Singapore-based digital asset exchange Huobi has announced the beta launch of its cryptocurrency derivatives trading platform. Huobi Derivative Market (Huobi DM) allows users to profit from rising and falling cryptocurrency prices by opening long or short positions.
According to a post on Huobi’s website, the new platform will initially start with BTC contracts denominated in U.S. dollars, with the corresponding cryptocurrency as margin. The profit and loss settlement will be conducted in the digital currency.
Huobi further explains that each contract represents a certain amount of cryptocurrency. “The face value of a BTC contract is $100 and the minimum price change in order book is aggregated to $0.01,” the announcement details. The face value of other contract varieties will be $10, and the minimum price change in the order book will be aggregated to $0.001.
Huobi DM offers weekly and biweekly contracts settled on Fridays, as well as quarterly contracts settled on the last Friday of March, June, September and December. Users have to select the leverage — the available options are 1x, 5x, 10x and 20x. All contracts should use the same leverage and cannot be changed when there are still open positions or pending orders.