Huobi Global, one of the world’s leading digital asset exchanges, today announced the launch of USDT-margined futures, a derivatives product that uses USDT as the margin and to calculate profit. This launch comes as Huobi Futures, a digital asset derivatives trading platform under Huobi Group, celebrates its third founding anniversary. The addition of USDT-margined futures supplements Huobi Futures’ existing suite of derivatives products, which include USDT-margined swaps, coin-margined swaps, and coin-margined futures.
USDT-margined futures play an important role as derivatives that enable users to speculate on an underlying digital asset without having to hold the actual asset. With stablecoin Tether (USDT) as the margin asset, users can trade multiple contracts without needing to purchase different assets. When people trade USDT-margined futures, the profits are calculated in USDT, making it easier for investors to benchmark and calculate profits. USDT-margined futures on Huobi offer three delivery date options: weekly, bi-weekly, and quarterly. There are no funding fees charged, making USDT-margined futures cheaper to trade versus USDT-margined swaps, which use funding fees to anchor spot prices. Huobi’s USDT-margined futures also offer maker fee rebates as high as 0.015% for market makers and the lowest taker fees for its VIP clients, making Huobi an optimal exchange for trading crypto futures.
By enabling investors to hedge a position, speculate on an underlying asset, or add leverage to their holdings, crypto derivatives play a crucial role in the market; data from futures contracts can act as price indicators for where spot prices are heading. From January to November this year, USDT-margined swap trading volumes accounted for 57% of Huobi Futures’ total volumes, indicating large demand for USDT-margined contracts.
Huobi Futures launched its first product, coin-margined swaps, in December 2018 to help investors hedge their 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. The latest addition of USDT-margined futures reflects Huobi Futures’ ambitions to create a one-stop crypto derivatives platform for its customers. Huobi Futures generated $2.3 trillion in 2020 trading volumes, with much demand coming from high-volume VIP traders and institutional clients, who trade on the platform because of its scale and liquidity.
Huobi Futures stands out for its professional team and risk control systems. Many of Huobi Futures’ management and staff come from leading investment banks, and their extensive experience with derivatives products enable them to create state-of-the-art systems for crypto derivatives trading. For example, Huobi Futures’ sophisticated risk control systems help assess risk when investors take highly leveraged positions, and can protect them from liquidation.
Huobi Futures will continue to expand its crypto derivative offerings going forward. Products such as perpetual swaps currently generate substantial trading volumes and investor interest in the derivatives markets. Other products such as leveraged ETPs, Callable Bull/Bear Contracts (CBBCs), and warrants may appeal to investors due to lower entry barriers. Huobi Futures is confident in the future of crypto derivatives and will continue to seek out new opportunities in the field.