Huobi Singapore Exchange has announced the platform: overview of changes
Singapore Huobi Exchange recently released an update to its Huobi Derivative Market platform and announced another innovation – two-quarter cryptocurrency futures. The latter are supported by 9 types of electronic money and 36 trading pairs. Trading operations under this scheme is possible with the use of leverage up to 125x.
The function of applying two-week contracts was launched in June this year. The exchange has futures on Bitcoin, Tron, Ethereum and other crypt. Their release takes place on every third Friday of the last month of the quarter, and the contracts are valid until the last Friday of the half year. When these futures become available, the other contracts that were in circulation are converted into quarterly contracts. The first batch of new contracts should be sold on December 25 of this year.
According to the management of the exchange, such innovations will expand options for trading operations for traders. Now they can open positions even when the account balance is lower. Due to a longer period of contract execution, the commission charged for the work will be reduced.
The higher the leverage multiplier, the less funds are needed to open a position. This pattern allows you to get a large profit.
In addition to two-quarter futures for the cryptocurrency, Huobi introduced a new function on the platform – “Blocked margin option”. It is used to reduce trading costs and increase return on investment.
The Singapore Stock Exchange holds leading positions in its crypto derivative products segment. It ranks first in the number of futures contracts for Bitcoin and Ethereum. Transactions with Bitcoin worth $3.73 billion per day and with Ethereum worth $1.2 billion are conducted on the exchange.
Leverage for perpetual swaps on the exchange is 125x. This indicator shows that the trader’s initial investment can grow by 125 times. However, despite the high potential profit, in this case the risk of losses increases. Therefore, such instruments may be used only by institutional and professional investors.
Other exchanges, for example BitMex and OKEx, do not place a high leverage, but limit themselves to 100x. Huobi explained that the new feature allows for more precise risk management and provides a partial liquidation option and a liquidation switch.
The Singapore Stock Exchange is introducing various instruments, which will allow for successful interaction in the market in conditions of its instability. The platform offers innovations to minimize risks and maximize profits.
Huobi also wants to expand the possibility of using perpetual swaps for various types of cryptocurrencies.