Leading cryptocurrency exchange Huobi has announced the launch of the Huobi Derivative Market (Huobi DM) at the Cryptofrontiers conference held in New York. The cryptocurrency derivatives market, called Huobi DM, will give its customers access to contract trading where a user can take long and short positions on cryptocurrencies. They have also highlighted that this platform will provide sophisticated tools for hedging and controlling uncertainties and risks related to crypto trading.
The platform comes with built-in investor protections such as a 20,000 BTC insurance fund to protect against security failures, along with other insurance funds and break mechanisms. Huobi DM will also give investors an opportunity to maximise profits by offering 1X, 5X, 10X and 20X leverage for trading.
Currently, the project is still in beta phase. Due to compliance and regulatory issues, customers in the US, Singapore, Israel, Malaysia and Hong Kong cannot access the platform.
It does seem like cryptocurrencies are being increasingly made available across a range of financial instruments. We do hope that the Indian government recognises the massive potential of these new digital assets and eases the regulatory tightening around it.