Introduction
On September 1st, Huobi launched BTC options contracts, joining platforms like Deribit, OKEx, and Binance in expanding the cryptocurrency options market. According to Tom, COO of Huobi Contracts, Huobi's options adopt a standardized European-style design. To align with current crypto trading habits, Huobi pioneered USDT-settled forward options contracts, making options trading as intuitive as futures.
As the cryptocurrency futures market matures, options—the "newcomers" in derivatives—are gaining traction. Huobi's entry completes its derivatives ecosystem, intensifying competition among top platforms (HBO: Huobi, Binance, OKEx). This collective push is expected to accelerate the adoption of crypto options.
Key Features of Huobi Options
1. Standard European-Style Design
- Buyers can only exercise options at expiration, simplifying operations for both parties.
- Positions can be closed early to lock in profits, with withdrawals available anytime.
2. USDT-Settled Forward Contracts (Industry First)
Advantages:
- Stable margin value (denominated in USDT).
- Lower swap costs—trade multiple assets with USDT.
- Clearer profit/loss calculations.
3. Flexible Expiry Cycles & Strike Prices
- Three expiry periods: Weekly, bi-weekly, quarterly.
- Five strike prices per cycle, balancing liquidity and diversity.
4. Risk-Reward Dynamics
- Buyers: Unlimited upside, limited to premium loss.
- Sellers: Limited to premium gains, uncapped downside.
👉 Explore Huobi’s innovative options trading
Market Context & Competitive Edge
Growing Demand for Crypto Options
- BTC options open interest doubled from $10B to $20B in Q3 2020 (Skew).
Deribit dominates (~78% share), but Huobi aims to disrupt with:
- Lower entry barriers (0.001 BTC vs. Deribit’s 0.1 BTC).
- Intuitive UI and simplified workflows.
Challenges & Solutions
- Liquidity: Huobi leverages its existing user base and maker rebates (up to 0.003 USDT/contract).
- Education: Tutorials, comics, and videos to demystify options.
HBO’s Derivatives Race
With OKEx and Binance also entering, the "options blue ocean" is heating up. Huobi’s late-but-aggressive stance mirrors its futures success—its BTC futures daily volume hit $4.7B (Skew), topping exchanges.
FAQ
Q: How does Huobi’s USDT-settled options benefit traders?
A: It reduces volatility exposure, simplifies margin management, and streamlines multi-asset trading.
Q: Why choose European over American-style options?
A: European options minimize complexity, aligning with crypto traders’ preference for straightforward products.
Q: What’s next for Huobi Options?
A: More asset support (e.g., ETH), leveraged selling, and advanced risk tools.
👉 Start trading options on Huobi today
Conclusion
Huobi’s foray into options marks a pivotal step for crypto derivatives. By addressing liquidity, education, and usability, it aims to replicate its futures success—offering traders a safer, more versatile toolkit amid volatile markets.