Yearly Review: What Has Huobi Futures Brought to Us In 2020？
2020 has been difficult for many as the COVID-19 pandemic has placed unprecedented challenges onto the global economy. In this challenging economic landscape, many analysts believe that the digital assets are becoming one of the best-performing options in 2020, even outperforming traditional investments like stocks. Inflation boosting stimulus programs authorized by major central banks have also had their say.
The price of Bitcoin rose rapidly, breaking through $20,000, $30,000 and even $40,000 in a short period of one month in December, contributing to a high sentiment in the spot market, followed by growing open interests and trading scale of the derivatives market.
According to the statistics of TokenInsight. BTC rose by 90% from September to October last year. The open interest of BTC/USD swaps has risen from $1.2 billion to $2.4 billion in the same period with a growth rate of 100%. Besides, the total trading volume of USDT-margined swaps also grew strongly and exceeded $700 billion in December, accounting for 56.65% of the total trading volume in the market. What exactly has Huobi Futures experienced in 2020 to make it grow so rapidly? Let’s take a look, together.
Overview of Huobi Futures’ Landscape in 2020
3/27: Launched Coin-margined Swaps: This is the second product of Huobi Futures, following coin-margined futures. Users could hold their contracts as long as they wanted if no liquidation occurs.
4/29: Introduced real-time settlement for coin-margined swaps: Users could withdraw their profits instantly after closing positions.
6/14: Introduced locked margin mechanism: User’s utilization of funds was greatly improved.
6/15: Introduced coin-margined bi-quarterly futures: Allowing four expirations to be selected for coin-margined futures.
9/1: Launched USDT-quoted options: Buyers could earn unlimited profits at a relatively low cost and will never worry about liquidation.
10/26: Launched USDT-margined Swaps: Users could use various swaps with only USDT and will never worry about depreciation in margin value.
Marked a new all-time high in 24-hour volume of over $28 billion on Nov. 26th.
12/6: Introduced cross margin mode for USDT-margined swaps: an innovative feature that allows users to use all USDT in the cross margin account as the margin, indicating that all positions under this mode share the same account equity.
Altogether, Huobi Futures offers over 110 derivative products:
Huobi Futures’ Growth in 2020
Huobi Futures has been widely recognized by users for its excellent liquidity and robust risk-control system. The annual trading volume in 2020 is nearly up to $2.3 trillion, with an average of 6.3 billion per day. Within two years since its launch, Huobi Futures is now the largest derivatives exchange by trading volume.
Coin-margined Futures is the first product of Huobi Futures. Launched in December 2018, its trading volume has sustainably ranked first in the derivative market in only eight months. At present, Huobi’s coin-margined futures trading has included 13 major crypto assets with a unilateral trading volume of $1.32 trillion in 2020.
Following the introduction of our first flagship product coin-margined futures, coin-margined swaps launched on Mar. 27, 2020 and exceeded BitMEX, the largest coin-margined swaps exchange at that time, in 45 days. Its annual trading volume reached $785.5 billion in 2020 and it has covered 57 mainstream currencies, including a wealth of DeFi currencies for users to choose from.
In September this year, Huobi launched USDT-quoted options whereby users could trade without worrying about the risk of liquidation. The product provides extremely low face value (0.001 BTC for a BTC options contract and 0.01 ETH for a ETH options contract), therefore options buyers could earn unlimited profits with a very low cost.
Then comes the fourth product USDT-margined swaps. Launched in Oct. 26, its trading volume has grown rapidly with its cumulative trading amount exceeding $177.8 billion in just two months. The launches of USDT-margined swaps opened doors for institutional investors to run their market-making strategies without bearing the huge cost for buying cryptocurrencies or the high interest rate for lending, which in turn bring more trading volume to the exchange and the crypto ecosystem.
What Has Huobi Futures Brought to Us In 2020？
Robust risk-control system and zero clawback
Huobi Futures is the first digital asset derivatives exchange in the industry that supports a three-phase liquidation protection mechanism and no transaction fees will be charged in partial liquidation. Moreover, the platform uses Exponential Moving Average (EMA) as a second reference for forced liquidation.
Due to its strong risk control system, the platform holds a record of zero clawback for 752 days since its launch in December of 2018. In version V6.3.0., the system has a throughput of 10W+, the response speed of placing and canceling orders is within 6ms, and the link delay is within 25ms.
Huobi Futures supports multiple order types including Limit Order, Trigger Order, IOC and FOK. To improve the asset utilization and to reduce and trading cost, Huobi introduced lots of innovative features like locked margin mechanism, take-profit and stop-loss, real-time settlement, Follow a Maker & Taker, etc. Huobi Futures also designed “Switchable Leverage When Holding Positions” function for its coin-margined positions. With no need to close positions first, users can switch leverage with positions holding as long as there is no open order. All these exciting functions empower both institutional and retail traders to fetch out maximum benefits in derivatives trading.
VIP level evaluations based on USD amount
Due to the fact that most exchanges require at least hundreds of BTC to be traded per month to reach their VIP standard, many traders have been rejected by these platforms to get a VIP when the annual increase in Bitcoin price has risen by 400%. On Huobi Futures, as long as you have assets worth of 30,000 USDT in Huobi Futures account, you will be qualified for VIP. In addition to that, Huobi introduced an upgraded VIP Sharing Program, that is, VIPs of any other exchanges are considered as Huobi Futures VIP+1. Users could provide certificates of VIP level on other platforms to apply for a VIP+1 level on Huobi Futures for coin-margined swaps and coin-margined futures trading.
The crypto revolution is just getting started. Though we can’t predict whether the current bull-market will persist in 2020, we can expect a new digital economy across many industries, which may drive the digital assets to a new level. As a leading digital asset derivatives platform, Huobi Futures will continuously provide more high-quality product and services to its users in this new year that people are looking forward to.