Huobi Exchange Launches a Derivatives Market

Huobi exchange has launched a derivatives market that will help it capitalize on the growing cryptocurrency industry. This Singapore based cryptocurrency exchange platform has been bust developing the infrastructure required to support Huobi Derivative Market.

Huobi Derivate Market Launched in New York City

Huobi derivate market was announced and showcased to thousands of cryptocurrency enthusiast who have attended Cryptofrontiers Conference that is being held in New York City. The company is optimistic that launching the new product in this event will help attract more customers.

Huobi Exchange Launches a Derivatives Market_coinrevolution news

One of the highlights that the developers stressed about is the fact that Huobi DM will allow clients to take part in crypto contract trading on not only rising cryptocurrency prices but also the falling prices. To facilitate this, the platform is equipped with tools for managing the risks, uncertainty, and hedging.

What is Cryptocurrency Contract Trading?

Cryptocurrency contract trading gives crypto traders opportunity to buy and sell their preferred cryptocurrencies at predetermined prices and at a particular time in the future. One of the benefits of this arrangement is that it gives crypto investors as well as traders a chance to open both short and long positions.

Huobi management team that introduced the platform in New York also stated that it is still in the beta testing stage. They also mentioned that only clients from specific countries such as Hong Kong, Israel, Singapore, Malaysia, and the United States are currently allowed to use the platform.

Notably, Huobi exchange is keen on taking advantage of Chinese crypto market. A few weeks ago, the company opened a Communist Party branch. This is one of the obligations that the company has to the Chinese state. Beijing Lianhuo Information Service (BLIS) will help the exchange to get a firm footing in the market.

Huobi Exchange Launches a Derivatives Market_news coinrevolution

The decision to open the branch was informed by the current Chinese law that requires any company that has more than three Communist Party member employees to set up its own subsidiary in the country. This requirement used to apply to only state enterprises by Huobi choose to follow it as a sign of embracing the tradition.

Last month, Huobi hinted about creating a stablecoin that will be known as HUSD. This stablecoin will act as a go-between to allow investors to trade with the four United States backed stablecoins. The four stablecoins are actually listed on Huobi main exchange platform.

As cited by cointelegraph, investors who purchase this stablecoin will also be able to trade it against other digital assets including stablecoin Tether, Ethereum, and Bitcoin.


The creation and launching of Huobi Derivative Market is a clear indication that the company serious plans to take full advantage of the market and dominate it. Even though the platform is still in beta stage, we are confident that it will be launched successfully and will have a positive impact on the industry.