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Huobi is rolling out futures on a new platform

At the CryptoFrontiers conference this year in New York, the Huobi digital currency exchange announced that it will begin offering derivatives trading. The service will be available through the Huobi Derivative Market (Huobi DM) to customers from selected countries and will allow them to open short and long positions for a handful of coins.

In an interview with Bitcoin Magazine, Joshua Goodbody, general counsel of Huobi's global corporate team, said: "Our derivative contracts are agreements to buy or sell assets at a specific future date and to a specific price: Once the derivative contract has been executed, both counterparties will buy and sell at the agreed price regardless of the actual market price. "

At the time of buying and selling these futures contracts, traders will have the option of 5X, 10X and 20X leverage.

At press time, Huobi DM is in beta test mode and its services are not available to users in the United States, Singapore, Israel, Cuba, Iran, North Korea and Syria. Goodbody says, "We are taking things slowly, but we are working with our lawyers and regulatory authorities to assess the requirements in each jurisdiction and take the necessary steps to deliver this in a consistent manner."

Huobi sought to limit both risk and uncertainty for its customers by using 24-hour exchange monitoring. It also provides an insurance fund of up to 20,000 BTC to any customer suffering from a serious security failure, as well as an insurance fund for each trading pair against the losses of outstanding settlement orders. Huobi also employs a circular interruption mechanism that protects customers from unnecessary or forced liquidations.

In addition, market makers (those who create new exchanges on the platform rather than hiring others) do not pay trading commissions while using Huobi's services and are entitled to the financial bonuses granted that always trade as producers.

"Huobi has a track record for innovation in the digital goods space," said Goodbod. "We look to the future and will always bring our customers with us on this journey, which is another exciting and important development for our global business".

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