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Cryptocurrency Derivatives Series: Huobi Plans To Unveil Perpetual Swaps on First Anniversary

The underlying asset, bitcoin price trend has been struggling of late, but It’s been a busy  and exciting times for crypto-derivatives markets. Crypto-derivatives instruments are evolving as the response towards such instruments are commendable, be it institutions or retail players, while Bitcoin and other digital assets are highly volatile investments.

Huobi DM intends to launch the facility of perpetual swap contracts in the crypto contract service platform by Q1 2020.  The latter is quite similar to a traditional futures contract but has no expiry or settlement. 

Huobi DM announced the news of a new product offering while celebrating one-year anniversary of their the services.

Perpetual Swaps of cryptos were originally introduced by Bitmex, a derivative product that were instrumental for trading like Future contracts but without any expiry or settlement.

supports BTC, EOS, BCH, BSV, ETH, and XRP contracts.

BitMEX had hit a daily turnover of 1 million BTC! as they had announced the launch of two derivatives products, namely, ETHUSD perpetual swaps and UPs & DOWNs to meet market demand on the back of the above-mentioned sensational news.

In yet another case, a Malta-based renowned exchange, OKEx, has also launched the Perpetual Swaps.

For now, to come to this point, Huobi DM has also come a long way, in terms of overall daily volume, Huobi DM outperformed several competitors based on AiCoin's 24h trading volume data. 

According to the dataset, as of November 18, 2019, Huobi DM led major competitors with $2.1 billion in daily transactional volume. From October 1 to November 15, 2019, the daily average volume on Huobi DM surpassed $2.5 billion. As for BTC contracts, Huobi DM's average daily volume was over $1.5 billion. October 26 saw the peak of total 24-hour volume for both DM and BTC contracts, with $9.9 billion and $6.7 billion respectively.

According to Jason Lan, Vice President of Huobi Group, "the wealth of products added to Huobi DM reflects the overall strength of the platform". Lan also highlighted DM's Sentiment Index function in October as a particularly exciting development. The Sentiment Index function releases open interest, liquidation, long and short data to users, which enables better market analyses and decisions. Huobi DM is also updating its API to support more order types such as advanced limit orders.

Amid such constructive news flows in the crypto-derivative markets, the bitcoin price trend has been struggling of late, BTCUSD price (at Coinbase) has plunged below $8k levels, currently trading at $7,536 levels with intensified selling momentum.

By Niranjan Patil
  • Market Data
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