Litecoin is the fourth digital asset added to the Huobi’s Derivatives Market after Bitcoin, Ethereum, and EOS. Litecoin contracts will be launched on January 25 at SGT 18:00 p.m. Last month, amidst the declining trading volume on various exchanges, Huobi DM claimed a whopping $1 billion in trading volume.
LTC Contracts Coming Tomorrow
One of the biggest crypto exchanges by market cap of about $285 million as per Coinmarketcap, Huobi is now launching Litecoin Contracts on its Derivatives market on January 25 that is less than a day away.
The exchange took to Twitter to share the news,
Huobi’s latest contract for the digital asset Litecoin is based on LTC/USD index that covers price LTC from four exchanges viz. Bitstamp, Gdax, Kraken, and Huobi. Each of these exchanges has 25 percent share in the index. With price quotation unit point and contract multiplier 1 USD/point, the minimum price change is 0.001 point.
These Litecoin contracts are of three types, weekly, bi-weekly, and quarterly with a face value of 10 USD. The minimum margin provided by Huobi for 1x leverage is 10%; for 5x it’s 20%; margin for 10x leverage is 10%, and for 20x leverage, it’s 5%.
Users are allowed to trade till the last 10 minute before the delivery but only to close positions. As for the delivery date, it’s 16:00 pm (UTC + 8) of the Friday before the contract expiration week.
The fees rate for open positions maker is 0.02% and for taker, it’s 0.03 percent. Same fees apply to close position maker and taker. Meanwhile, the delivery fees rate is 0.05 percent while the contracts will be settled in digital asset price difference.
Other Altcoins Contracts in the Pipeline
Huobi has already launched the contracts of Bitcoin, Ethereum, and EOS. Back in December 2018, the daily traded volume of cryptocurrency contracts on the Derivative Market of Huobi registered more than $1 billion just after a month of its launch.
This platform allows traders to trade the digital asset contracts with the purpose to speculate, arbitrate, and hedge. Now, Litecoin is the fourth digital asset in this list and others are expected to get added soon as the Litecoin contracts announcement further states, “Huobi DM will launch other altcoins contracts successively, please stay tuned.”
While the trading volumes across different exchanges are taking a substantial hit, Huobi has launched its derivatives market with four of the top cryptos that according to the Huobi Global’s CEO Livio Weng allow the market participants to control risks in a volatile trading climate.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.