Huobi Futures – a crypto derivatives market of Huobi Group – is unveiling new bitcoin options trading, which will go live today on September 1.
Huobi Opens BTC Options Trading for Business
Huobi has been on a roll in 2020 during a time when most companies are likely suffering and taking on debt thanks to the growing coronavirus pandemic. Earlier this year, the company released a program known as Huobi Futures’ Perpetual Swaps as a means of giving traders a larger chance to hedge their wealth during this time of harsh economic strife.
The virus has pulled a lot of people’s financial beliefs into question. Assets like the U.S. dollar, for example, and other forms of fiat, have ultimately begun to cave to the growing rise of inflation and other tough monetary circumstances battering the global economy. As a result, many people are now looking to things like gold, bitcoin and similar assets to ensure they stay safe and stable.
Bitcoin has transferred into the realm of “safe haven” asset, while gold has been there for a while already. The point is that many individual traders are looking for new ways to keep their wealth working for them – even when there’s a weakening economy in play.
Ciara Sun – vice president of global business at Huobi Group – explained in a statement:
As investors brace for prolonged economic uncertainty across global financial markets, the influx of institutional capital and other forms of ‘smart money’ into digital assets like bitcoin are driving a surge in demand for more diverse trading products. Our new options product was launched in response to market demand and this economic new reality. With this latest addition to our growing lineup of derivative products like Perpetual Swaps and Futures, we’re giving users a robust set of tools to execute more sophisticated trading strategies.
The new bitcoin option product being offered by Huobi provides people with a right – but not an obligation – to purchase or sell bitcoin units at agreed upon prices. These prices are usually met on or by a certain date. The prices and dates in question are typically selected beforehand by the seller and buyer. In many ways, it’s an arrangement that serves both parties in that usually the buyer can gain access to bitcoin at a lesser price, while the seller can get their fingers on other crypto or cash payments.
The BTC options are typically quoted in Tether (USDT). In addition, they are available in quarterly, weekly or bi-weekly windows for traders looking to explore different choices.
Some Ease to the Trading Process
Sun further mentioned:
Financial instruments like options don’t guarantee profits, but they do provide traders with greater flexibility and more opportunities. More importantly, we’re giving users access to an options product backed by the security and reliability they’ve come to expect from a global exchange like Huobi.