- This launch comes after Huobi introduced perpetual swaps in March this year.
- The Bi-Quarterly products will offer leverage options of up to 125x.
- Per Huobi, the new product will support nine mainstream cryptocurrencies and 36 trading pairs.
Huobi exchange has introduced a new futures product on its platform. Dubbed Bi-Quarterly Contracts, the exchange released this product on June 15. The exchange unveiled this news via a blog post, noting that the Bi-Quarterly futures contracts would join its wide array of derivatives trading tools to help increase leverage options. This launch came just a day after Huobi rolled out version 4.2.0 of its system upgrade on June 14.
According to the blog post, this launch comes after Huobi rolled out perpetual swaps in late March. A few months after the introduction of this product, Huobi topped the daily trading volume in coin-margined perpetual swaps. Following this success, the Huobi Futures team got inspired to roll out the Bi-Quarterly Contracts.
Reportedly, the new features product will offer higher leverage options of up to 125x. As such, it will provide users with a broad range of choices and lower principal cost to open a position. For experienced futures traders, this means that they will need less principal cost when they apply high leverage multiples. Bi-Quarterly contracts will also provide an opportunity to cut commission costs seeing as the holding period will be longer.
Huobi launched this product following user demand
Per the publication, Huobi rolls out products relative to user demand. The Bi-Quarterly product was no exception. It will support nine mainstream crypto coins and 36 trading pairs.
Commenting on this launch, Ciara Sun, Huobi Global’s VP, and head of global markets said,
“Huobi also has added weekly and quarterly futures products previously. We believe the Bi-Quarterly product can certainly provide a broader range of options for our users,”
She added that,
“The popularity of Futures trading in cryptocurrency has been on the rise through 2020 with the market noting an uptick in institutional trading for these products. Huobi’s own platform noted institutional interest growth to rise to near 40 percent on its Futures platform in Q1 of 2020.”
Sun further noted that on top of benefiting from the latest system upgrade and the new offering, investors will also be in a position to take advantage of an adopted locked margin optimization feature. In so doing, they can help improve asset utilization and minimize margin positions. She added that Huobi is also working on an API upgrade.
Huobi consistent growth aims to attract more investors
This news comes after Huobi rebranded its derivatives platform to Huobi Futures in a bid to woo more investors. According to Sun, the new name symbolizes growth from a nascent sector to one that is now attracting the interest of both institutional and retail investors.
Do you think the launch of the Bi-Quarterly product will help Huobi attract more institutional investors? Share your thoughts in the comment section below.