Huobi Derivative Market (Huobi DM), the digital asset derivative trading platform of Huobi, the third largest cryptocurrency exchange in the world, announced this Friday that it has expanded its contract trading service to include the altcoin EOS.
EOS joins Bitcoin (BTC) and Ethereum (ETH) contract services previously available on the platform. On Huobi DM, traders will be able to take both long and short positions on EOS, allowing for arbitrage, speculation, and hedging, the statement said.
EOS is the token of EOS.IO, a blockchain protocol which is powered by the cryptocurrency. EOS was launched in 2017, and since then, its price has fluctuated between $18 and less than $0.80.
Commenting on the update, the Huobi Global CEO Livio Weng said: “We’ve seen a great response to our Bitcoin and Ethereum contract services from a broad range of sophisticated traders.”
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
“Along with that, we’re also seen strong demand to expand Huobi DM to other coin types as well. Adding EOS contract service is part of our ongoing efforts to address customer demand.”
According to the statement released today, the fees for trading the EOS derivative on Huobi DM for makers will be 0.02 percent and, for takes to both open and close positions, 0.03 percent.
Huobi DM risk mitigation
The contract will offer leverage of up to 20x and will support price limit, order limit and position limit orders, the statement said. To protect investors from large losses, the platform has a dedicated Risk Management Insurance Fund for all trading pairs to protect against unfilled liquidation order losses and has set up a 20,000 BTC Huobi Security Fund. This is to protect its customers against catastrophic security failures.
“Huobi DM can be a powerful tool in managing risk in EOS and other cryptocurrencies. That’s an important factor when dealing with bear markets, such as the one we find ourselves in now,” Weng added.