Huobi Accepting Bitcoin as Collateral for Trade on Shanghai Stock Exchange

Chinese Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term exchange Huobi has announced its launching of a new service, Caimao, which allows you to use your bitcoins as collateral for trading on the Shanghai Stock Exchange.

2015 has been a much quieter year for bitcoin exchanges relative to last, when new venues and features were common- still riding the wake of multifold rises in crypto prices in late 2013. China was at the center of the speculative craze. With the speculative bubble well behind us and prices not really moving much these days, it seems that trader interest may be waning, particularly in China.

Indeed, Huobi acknowledges that the business environment for exchanges has become difficult. In a sense, the Shanghai Stock Exchange has functioned like a crypto exchange during the past year, its composite index rising by 125%. The resurgence of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term on it- today saw the composite drop by a cool 4.06%, a figure unheard of from most world indices since the great financial crisis- has attracted Chinese traders in droves.

Thus, Huobi has come to cater to this demand with Caimao. The offering allows you to supply the yuan-equivalent value of your bitcoins, and borrow an additional 60%, to trade on the exchange. Deposited bitcoins are only liquidated if account equity falls below pre-defined margin levels. Interest is charged on borrowed amounts, and withdrawable bitcoin balances are adjusted based on overall profits/losses.

In a possible shift, Huobi says that its long-term vision is "a world in which anyone anywhere can invest in anything." Bitcoin, it says, has provided the foundation to make this possible.

A Huobi representative told Finance Magnates that its partner, Wanlian Securities, is handling the trade execution.