Huobi to Launch Bitcoin Options in Q3 2020

Huobi, a leading 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 futures and spot Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, has announced its plans to launch Bitcoin options trading in the third quarter of 2020.

Per the press release shared with Finance Magnates, the Singapore-headquartered exchange is going to add the new derivatives instrument on its existing futures platform where it offers perpetual contracts.

Huobi is one of the largest Bitcoin futures exchange, currently standing strong in the second position in terms of daily trading volume only following Binance, according to Coinmarketcap.com. The platform made its names with Bitcoin perpetual contracts, making them mainstream in the crypto industry.

The exchange explained that Bitcoin options are very similar to the futures, but the contract holders do not have any obligation to buy the asset upon maturity, instead the trader can exit by paying a pre-decided premium.

Rising demand for crypto derivatives

Huobi is jumping introducing the instrument when the market demand for Bitcoin options is skyrocketing. But Huobi will have to face some fierce competition from leading platforms including Deribit, CME Group, and even Binance.

Last month, CME Group reported that its Bitcoin options demand soared 10x, but Deribit is still holding 80 percent of the market.

Huobi detailed that its options contracts will be in European style, meaning the buyer of the Option can only be exercised at the expiration. The exchange also highlighted that initially only Bitcoin options will be in the offering, but did not specify any plans to expand with other digital assets.

“Huobi also offers incredibly low minimum positions of 0.001 BTC. This means that traders can open an Options position with around $10 compared to other exchanges where the minimum position can cost as much as 1 BTC,” the exchange noted.

The contracts are still in the alpha testing phase and after the completion, Huobi Futures will announce the official launch on Web and API, following an offering on the mobile trading application.