Huobi Futures to launch Bitcoin Options Trading in Q3 of 2020.
Following the successful launch of Perpetual Swaps in Q2 of this year, Huobi Futures now has its sights on a Q3 launch for its Bitcoin Options.
Bitcoin Options are a form of financial derivatives that provide traders with the right, but not the obligation, to buy or sell Bitcoin at a specific price at a certain date of expiry.
Alpha testing is already in full swing as the Huobi team looks to iron out and streamline the Options trading offering. Once complete, Huobi Futures will announce the official launch on the Web and API. The options will also then be expanded to the Huobi Trading App.
The contracts will be offered in the European style meaning that buyer of the Option can only be exercised at the expiration. The Options contracts will, at first, only be available for Bitcoin.
Options have long been a popular derivatives trading tool in the traditional space, but this type of trading has also permeated the cryptocurrency space recently. A Bitcoin Options contract is similar to a futures contract with the main difference being that the trader has an option, rather than an obligation, to buy or sell on a fixed date at an agreed upon price.
The crypto behemoth’s entry into the derivatives market has been incredibly successful so far and continues to be bolstered. The company has been sitting at the top of many metrics regarding trading volume and has rocketed to the top in Perpetual Swaps in just a few months.