Huobi launches USDT-margined futures as firm looks to lead derivatives trading

Rick Steves

In 2020, Huobi Futures generated $2.3 trillion in 2020 trading volumes. High-volume VIP traders and institutional clients were detrimental to such trading volumes. 

Huobi Global has launched a new derivatives product, USDT-margined futures, which uses USDT as the margin and to calculate profit.

The product complements the existing suite of derivative instruments, including USDT-margined swaps, coin-margined swaps, and coin-margined futures.

The digital asset exchange is celebrating the third anniversary of Huobi Futures, the firm’s digital asset derivatives trading platform.

Trading crypto futures with Huobi

Huobi is promoting the use of USDT-margined futures for its role of enabling users to speculate on an underlying digital asset without having to hold the actual asset. In this case, users can trade multiple contracts without needing to purchase different assets.

The profits are calculated in USDT, which makes it easier for investors to benchmark and calculate profits since Tether is meant to always equal the US Dollar.

Huobi charges no funding fees on USDT-margined futures on Huobi and offers three delivery date options: weekly, bi-weekly, and quarterly. The exchange says the product to be cheaper to trade versus USDT-margined swaps, which use funding fees to anchor spot prices.

Another advantage of Huobi’s USDT-margined futures is that the venue says it offers maker fee rebates as high as 0.015% for market makers and the lowest taker fees for its VIP clients.

USDT-margined swap trading volumes accounted for 57% of Huobi Futures’ total volumes, indicating large demand for USDT-margined contracts from January to November 2021.

Data from futures contracts can act as price indicators for where spot prices are heading as crypto derivatives allow investors to hedge a position, speculate on an underlying asset, or add leverage to their holdings.

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Huobi Futures generated $2.3 trillion in 2020 trading volumes

The first product launched by Huobi Futures was coin-margined swaps in December 2018, which could be used to hedge positions and mitigate risks in the midst of intense market volatility.

In March and October 2021, Huobi Futures launched coin-margined swaps and USDT-margined swaps, respectively as the derivatives trading platform grew in ambition to create a one-stop shop for its customers.

In 2020, Huobi Futures generated $2.3 trillion in 2020 trading volumes. High-volume VIP traders and institutional clients were detrimental to such trading volumes.

Products such as perpetual swaps currently generate substantial trading volumes and investor interest in the derivatives markets, but the firm also eyes leveraged ETPs, Callable Bull/Bear Contracts (CBBCs), and warrants as derivatives products that could be adopted by investors looking to lower entry barriers.

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