Leading digital currency derivatives and exchange platforms, Huobi has announced its intention to debut Options trading on derivatives offerings in this quarter, beginning with Bitcoin Options. The exchange is extensively growing its derivatives marketplace with new offerings. Recently, it introduced bi-quarterly futures trading for Bitcoin.
Huobi Bitcoin Options currently in Alpha testing
On Monday, Huobi announced it would launch its Options trading for both institutions and individual traders, starting with Bitcoin Options. At the moment, the Options trading service on Huobi is being trialed in Alpha mode. Upon completion, the exchange will officially release the service on both its API and Web.
Bitcoin Options are another popularly traded derivatives offering, which is quite similar to Futures products. The major difference between offerings is that traders are obligated to purchase or sell their Bitcoin upon expiry at a stated price in Bitcoin Futures, while Options trading does not. Just like the name implies, Bitcoin Options provide traders with an option instead of obligation.
Huobi grows its derivative market
Among several other reasons, Bitcoin Options trading is popular as it is more likely to be more cost-efficient. Also, Options trading is thought to be less risky. Traders can only incur maximum loss will Options Premium, as the cryptocurrency explained in the report. Options contracts can equally be used to hedge against the spot market.
The leading crypto derivatives platform also mentioned that traders could hold positions on its Bitcoin Options market starting with as low as 0.001 BTC, as the minimum amount. Compared to other exchanges that require 1 Bitcoin for a start, Huobi would enable traders to begin trading with about $10.
Since this year, the exchange has been growing its derivatives market with new trading services. As of June, Huobi launched a bi-quarterly futures contract for the largest cryptocurrency, Bitcoin. Within the previous quarter, the exchange also released perpetual swaps.