Huobi Futures Announces APP Service of Cross Margin Mode for Its USDT-Margined Swaps
- Blockchain , Cryptocurrencies
- 18.12.2020 04:45 pm
Huobi Futures today announced the App launch of cross margining of USDT-margined swaps on its digital asset derivative trading platform. With the new feature, any profitable positions in this mode can offset positions that are close to be liquidated. By allowing users to tailor their portfolios to the strategies they are partial to, Huobi is providing traders with greater convenience and helping them avoid unnecessary liquidation when their overall portfolio is otherwise sound.
“With cross margining, we’re aiming to give our users more control over the way they trade digital assets and manage their portfolios — a key objective at Huobi,” said Ciara Sun, Vice President, Global Business at Huobi Group. “Everyone has a different trading methodology and strategy, so we want to empower users to build diverse portfolios without penalizing individual positions within a silo. Cross margining takes a more holistic approaches when assessing margin requirements by taking into account a user’s overall standing.”
With the introduction of cross margining, users can leverage two distinct forms of margining when trading USDT-margined swaps. In cross margin mode, all USDT-margined swap positions have shared margin and account equity, with profit-and-loss and margin ratios calculated jointly and in the aggregate.
The margined-swaps is especially useful in a volatile market as it takes users' available asset balance as margin against liquidation. Additionally, any realized PnL from single position can aid a losing position, further reduced the risks of liquidation. Otherwise in isolated margin mode, when each position’s standing and margin ratio is calculated separately and each pending positions are non-reciprocal, accounts can be exposed with higher risks in liquidation due to extreme market conditions and high leverage settings.
On the Huobi Futures platform, users could trade USDT-margined swaps in multiple positions sharing a total amount of USDT in the cross margin account. Huobi currently supports cross margining for BTC/USDT, ETH/USDT, LINK/USDT, LTC/USDT, XRP/USDT, TRX/USDT, DOT/USDT, ADA/USDT, EOS/USDT and BCH/USDT swaps with additional trading pairs to be added in the near future. Huobi also enables real-time settlements for these pairs, as well as LINK/USD, TRX/USD, XRP/USD and ADA/USD coin-margined futures and swaps, allowing users to withdraw realized profits immediately after a position is closed.
“Not being able to switch modes when holding open orders or positions has always been a sour point in the current derivatives market. Huobi has innovated a unique solution especially for users who want to switch mode when holding positions or open orders," Ciara Sun added.
The launch of the cross margining feature comes on the second anniversary of Huobi Futures, which is now one of the largest digital asset derivatives markets globally. Since its launch in the end of 2018, Huobi Futures has expanded its product offerings to include USDT-margined swaps, coin-margined swaps, futures, and USDT-quoted options, reaching a total cumulative trading volume in excess of $2.6 trillion USD.
Huobi Gives Away 50,000 USDT to Raise Awareness of Cross Margin for USDT Margined Swaps
To win the USDT prizes, participants will have to show a cumulative trading volume of 500 USDT or higher, and share the activity poster on their social media pages. The campaign will start at 8:00 UTC on December 17th and will last for a week. Please click here for more details.
Besides, Huobi also introduces “VIP+1 policy” and "Deposit to Become a VIP" campaigns with attractive maker fee rebate provided to its users.