The global financial landscape has undergone significant changes with multiple central banks continuing their monetary easing policies, coinciding with a robust Bitcoin bull market. This environment has ignited widespread trading enthusiasm among investors, leading to record-breaking volumes in futures trading—now a highly sought-after avenue for crypto enthusiasts.
However, exchange data reveals that this surge isn’t evenly distributed but rather concentrated toward top-tier platforms. According to TokenInsight, the ratio of spot-to-derivatives trading volume in 2020 was 1.71:1 across the market. Notably, Huobi’s ratio stood at 0.24, outperforming competitors like OKEx and Binance in derivatives dominance.
Key Factors Driving Huobi Futures’ Success
1. Rapid Growth and Market Leadership
Huobi Futures entered the arena in December 2018 with coin-margined swaps. Key milestones:
- August 2019: Achieved global #1 in liquidity and depth within 8 months.
- March 2020: Launched inverse perpetual contracts, surpassing BitMEX in 45 days.
- October 2020: USDT-margined perpetual contracts hit $100B daily volume within two months, cementing Huobi’s lead.
2. Comprehensive Product Offerings
Huobi now supports:
- USDT/coin-margined perpetual contracts
- Coin-margined futures
- Options
Covering 80+ assets, including DeFi and NFT tokens, it’s the largest one-stop derivatives platform.
3. Enhanced Trading Efficiency
- Tight spreads: Minimizes slippage for retail and institutional traders.
- Real-time settlements: 40+ tokens support instant settlements.
- Low fees: Competitive fee structure with 60% rebates for makers.
Risk Control and Security Innovations
Huobi’s reputation for safety is unparalleled:
- Zero分摊 (loss mutualization): Maintained since launch.
- Multi-layer protection: Risk reserve funds, emergency liquidity, and a 2021 mark-price system to prevent cascading liquidations.
- Upgraded mechanisms: Bidirectional stop-loss, dynamic margin optimization.
Global Expansion and User Incentives
- Localized teams: Expanded to Turkey and beyond, targeting emerging markets.
- VIP perks: Seamless migration for VIPs from other platforms + deposit-based VIP rewards.
FAQs
Q: Why choose Huobi Futures over competitors?
A: Superior liquidity, lower fees, and innovative risk tools make it ideal for volatile markets.
Q: How does Huobi ensure contract stability?
A: Through a $400M security reserve, real-time audits, and advanced liquidation buffers.
Q: What’s next for Huobi Futures?
A: Expect more asset coverage and institutional-grade products as derivatives demand grows.
Data sources: TokenInsight, CoinGecko (March 2021).