SPOTLIGHT ON HUOBI #2
Hi Steemians, after the previous publication regarding Perpetual Swaps, Welcome to my Second entry on this #ilovehuobi and in my previous entries I talked a lot about some fantastic features of Huobi exchange like the ease of entry and low transaction speed, in this review, we will be talking about one of the killer features that make Huobi the first choice exchange for expert traders and newbies.
I will present today in this third post in the #ilovehuobi contest a new derivative product of Huobi Futures namely Option contracts which are a form of financial derivative that gives the trader the right, but not the obligation, to buy or sell at a specific price on a certain expiration date. The ending is the act of entrusting an asset or value owned to another party under contract to repay the value back with its accumulated interest. So lending is required two parties, that is both the lender and the borrower for a transaction to happen, a lender provides required funds while the borrower returns the borrowed amount with interest. This is exactly what happens on the Huobi C2C lending platform.
On Huobi Futures, the options trading process requires that the option buyer can only be exercised at expiration. Currently, options contracts are only available for Bitcoin and Ethereum which are quoted in USDT. Options are also less risky, as the maximum loss an option holder can suffer is the options premium while there is almost unlimited profit potential. Hedging can also be effectively achieved on options contracts against the spot market and be used in arbitrage. Options can also be used in conjunction with other trading methods and strategies and due to their effectiveness in a rising, falling, or stable market, they can be effective in making profits as long as the right goals are set.
Huobi's C2C lending protocol creates a peer to peer system that directly connects lenders to borrowers(in most cases margin traders) which allows them to carry out transactions and contracts in a trustless manner with Huobi's as a custodian of the asset, this allows margin traders the ability to obtain loans at a potentially cheaper interest rate. Currently, lenders can lend BTC and USDT tokens, more will be added in the future. Among the strengths of this platform are low minimum positions of 0.001 BTC, allowing traders to open an options position with around $ 20 compared to other exchange platforms where the minimum position can cost up to 1 BTC. Also, Huobi Futures does not charge multiple fees - just basic trading fees and delivery fees. No additional charge is required. These fees are also relatively low between markets. Huobi charges a Platform Service Fee of 18% charged against the interest amount, which is deducted upon loan repayment. Interest is computed on an hourly basis. Loan duration of less than 1 hour will be considered as one (1) hour. The borrower retains the right to initiate early repayment of the loan. The actual loan period computed will be based on the actual repayment date.
regards,
@maaz23