Huobi Perpetual Swaps
The crypto exchange Huobi launches perpetual swaps, which are now active on exchange’s derivatives trading platform, Huobi DM, for the users across the world. Like Binance, Singapore-based exchange also announces perpetual swaps with leverage up to 125x.
The perpetual swaps are like future contracts but with no expiry date, and users will have digital assets with no ownership status. These types of bitcoin derivatives started by the crypto exchange BitMex and then other exchanges also added this facility later.
Derivative Feature is Live on Huobi DM
Before this, Huobi DM also offering future contracts for the top leading asset Bitcoin as crypto derivatives. The newly added functionality ‘’enables users to better hedge risk and create leveraged arbitrage opportunities in volatile market conditions.’’
Ciara Sun, the VP of Global Business Unit at Huobi Group, said:
‘’As we’ve recently experienced, sudden market swings can have a significant yet temporary impact on the broader financial ecosystem, but volatility itself is a very normal part of market cycle. Perpetual swaps provide traders another tool in their arsenal to capitalize on market movements to create arbitrage.’’
Other crypto exchanges such as Binance and OKEx added perpetual swaps last year, and now, in a row Houbi also follows the trend. Huobi DM rolls out this new feature with maximum leverage up to 125x as Binance did the same last year. On the contrary, OKEx and BitMex are providing this crypto derivative feature with a maximum leverage up to 100x.
As these special types of swaps involve high risk, the company claims that they also added highly risk management tools. Due to high risk, the new babies are not advised to utilize this feature as only institutional traders can manage the risk.
‘’Perpetual swaps have been on our roadmap for quite some time, but we wanted to ensure we had the right risk controls in place before we made it available to users,’’ Sun.