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How Bitcoin Futures Trading Platforms Adjust Their Instruments Amidst Bullish Market: Case of Huobi

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In 2020, crypto derivatives trading replaced spot trading as the most popular digital assets exchange segment. To meet the increased requirements of sophisticated and retail traders, Huobi Futures – the derivatives arm of Huobi Global crypto exchange ecosystem – introduces new instruments.

Huobi Futures meets bullish run locked and loaded: novelties and adjustments

Launched in December 2018, Huobi Futures is a crypto derivatives ecosystem of Huobi Global, one of the oldest digital assets exchanges. Huobi Futures delivers the services of contracts and options trading on multiple currencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Huobi Token (HT), Filecoin (FIL) and so on.

To guarantee all customers an advanced level of trading experience, Huobi Futures introduces daily settlements and stop-loss/take-profit instruments.

Daily Settlements

Starting from Jan. 7, 2021 (GMT+8), Huobi Futures implements daily settlements for coin-margined futures. This option allows traders to build a much more flexible strategy since they can withdraw realized profits promptly after daily settlement at 16:00.

Therefore, there is no need to wait for Friday: trading strategies can be adjusted daily and clients can spend money more effectively.

Types of contract (expiration period) Conditions before adjustment Conditions after adjustment
Weekly Delivered at 16:00 (GMT+8) every Friday Delivered at 16:00 (GMT+8) every Friday; settled at 16:00 (GMT+8) every day except for Friday.
Bi-weekly Settled at 16:00 (GMT+8) every Friday Settled at 16:00 (GMT+8) every day
Quarterly Settled at 16:00 (GMT+8) every Friday Settled at 16:00 (GMT+8) every day
Bi-quarterly Settled at 16:00 (GMT+8) every Friday Settled at 16:00 (GMT+8) every day

TABLE: Huobi

Initially, the service is offered on a trial basis until June 30, 2021 (GMT+8).

Stop-Losses and Take-Profits

Major risk management instruments – namely, stop-losses and take-profits – should be referred to as the position-closing orders with preset trigger conditions (trigger price of take-profit or stop-loss order) and price.

Setting stop-losses and take-profits eliminates the need for traders to control price moves manually and place ordinary market buy/sell orders.

Rationale

To allow traders to get the most out of a fluctuating market during the bullish rally, Huobi Futures implements stop-losses and take-profits features for coin-margined futures, coin-margined swaps and USDT-margined swaps in the web interface and API version of the trading engine.

New instruments have been available since Jan. 7, 2021 (GMT+8).

How do SL and TP work on Huobi Futures?

Stop-losses and take-profits can be settled for both existing and new positions. Users can set a take-profit order or stop-loss order for a certain position, or set them both at the same time. To illustrate the way that stop-losses and take-profits work, Huobi Futures summarized examples of the behavior of new and existing positions with these instruments activated.

Set a take-profit and stop-loss order when opening a position
Take-profit and stop-loss order Open Long (Buy) Open Short (Sell)
(Close position)Take-profit order Price of limit order<Tigger price of take-profit order Price of limit order>Trigger price of take-profit order
(Close position)Stop-loss order Price of limit order>Trigger price of stop-loss price Price of limit order<Trigger price of stop-loss order
Set a take-profit and stop-loss order for an existing position
Take-profit and stop-loss order Long positions held Short positions held
(Close position)Take-profit order Latest price<Trigger price of take-profit order Latest price>Trigger price of take-profit order
(Close position)Stop-loss order Latest price>Trigger price of stop-loss order Latest price<Trigger price of stop-loss order

Both types of orders work for closing positions only. Once the position opening (limit) order is fully or partially filled, corresponding stop-loss and take-profits orders go to ” placed” status. Simultaneously placed take-profit and stop-loss orders are interrelated: once the first one is triggered, another is canceled immediately.

How to set stop-losses and take-profits

Stop-losses and take-profits can be placed for existing and new positions, so risk adjustment can be done simultaneously with the opening of trade or after it.

How to set stop-losses and take-profits for a new position

Trader Alice treats 17,000 USDT as a reliable level of support amidst a falling Bitcoin (BTC) price. Meanwhile, a brutal correction may follow if bears manage to suppress BTC below 16,800 USDT. But the 18,000 USDT level is most likely the closest resistance, so it would be interesting to take profits at this level.

As a result, Alice decides to enter the trade at 17,000 USDT, set the stop-loss at 16,800 USDT and the take-profit at 18,000 USDT.

To realize this strategy, she needs to set one limit order, SL and TP. Thus, she needs to choose “Limit order” – “Stop-limit” options and customize the order conditions:

Image: Huobi

Once the order is set, Alice needs to push “Open Long (Buy)” to make it active. The status of stop-losses and take-profits can be checked in the “Open Orders-Limit Orders” menu.

Once one order is triggered by price moves (either SL or TP, whichever comes first), another one becomes invalid automatically.

How to set stop-losses and take-profits for an opened position

Setting SL and TP for a position that is already opened looks slightly easier. If trader Bob is in a long position from 17,000 USDT/BTC and the price of the king coin inches closer to 18,000 USDT, he may be ready to take profits. He can do it in two ways: by USDT-denominated price and by profit rate.

Choosing the “By Price” method, Tom is able to set 18,500 USDT as a “take-profit” price and 17,500 USDT as a “stop-loss” price. Once two orders are active, they act similarly to Alice’s.

Also, Bob can choose the “By profit rate” mode and decide which profit would be sufficient for his long in this particular market situation.

Bottom Line

Bitcoin Futures should be referred to as speculative contracts that provide traders with exposure to crypto markets without buying tokens directly. Huobi Futures is a reliable vendor of Bitcoin (BTC) futures trading services.

To ensure maximum trading efficiency, its team introduced daily settlement of futures (instead of weekly), as well as stop-loss and take-profit instruments for coin-margined and USDT-margined positions.

Trade on Huobi Futures: futures.huobi.be

Twitter: https://twitter.com/HuobiFutures_

Telegram Chat: https://t.me/HuobiFutures_en

 

Source: https://bitcoinist.com/how-bitcoin-futures-trading-platforms-adjust-their-instruments-amidst-bullish-market-case-of-huobi/?utm_source=rss&utm_medium=rss&utm_campaign=how-bitcoin-futures-trading-platforms-adjust-their-instruments-amidst-bullish-market-case-of-huobi

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Institutions are Adopting Crypto, Deutsche Börse’s Bitcoin ETF Trading Volume Nears Traditional ETFs

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German exchanges hosting the bitcoin ETF recorded volumes equivalent to many of its popular traditional exchange-traded funds.  Bitcoin Exchange-Traded Crypto (BTCE), Deutsche Börse ETF  is one such product currently in high demand and recorded an average daily trading volume of  €57m in the first 11 days of January, reported Financial Times.

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The Bitcoin ETF traded just short of the most popular ETF INRG which recorded a trading volume of only a million more than BTCE.

Bitcoin ETF is still a distant dream for US investors but it is legal in Europe, because of which many mainstream traditional exchanges list these bitcoin pegged products. Many believe US regulators might approve Bitcoin ETF owing to the growing market cap of nearly $100 billion and a great surge in institutional interest.

Stephan Kraus, head of Deutsche Börse’s ETF segment believed that the

“The structure of the BTCE exchange-traded note, which eased the regulatory concerns and counterparty risk involved in trading bitcoin, had increased the appeal of cryptocurrency investments for institutional investors that can trade without needing to set up specialized digital infrastructure or use an “unregulated crypto platform”.

Bitcoin-Pegged Exchange Products Would Become More Common With Regulatory Ease

The surge in demand for such Bitcoin pegged products has seen a significant bump suggesting rising institution interest in the top cryptocurrency. It also shows that institutions that have chosen gold as their hedge against the troubled financial times no more see it as the only store-of-value asset, bitcoin is slowly but surely eating away gold’s market.

Not just German Bitcoin ETP, even the surging volume of Grayscale who also offers a similar product that tracks the price of Bitcoin has recorded an average daily trading volume of near a billion US Dollars for the first two weeks of 2021, showing that institutions are betting big on bitcoin.

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The institutional inflow in crypto has just begun with the likes of MicroStrategy using Bitcoin as a Treasury asset, more use cases, and products would arise shortly as the regularity clampdowns are cut short.

The US regulators in the past have rejected several ETF applications citing the crypto market to be too small to handle the exchange-traded funds. However, that seems to have changed quite fast with the ongoing bull run.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

FBC13

Source: https://coingape.com/bitcoin-pegged-security-trading-volume-nears-traditional-etf-on-german-exchanges/

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Forget ETH Killer. This Crypto Project Aims to Be Facebook Killer

Revolution Populi wants to foster social networks that don’t steal your data.

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In brief

  • Revolution Populi is building a blockchain-enabled database that allows data to be ported.
  • It’s announced an integration with Matic Network to enable decentralized apps on its network.
  • RevPop envisions an ecosystem of competing social networks—with users who own their own data.

In our chaotic times, filled with partisan rancor and dueling versions of the truth, there’s one thing everyone can agree on: Facebook sucks.

Now, a fledgling blockchain project is one stop closer to taking down the internet Goliath and planting a flag for social networks that don’t control (or sell) user data.

Revolution Populi (RevPop, for short), a “layer-1 decentralized database with user controls,” has tapped Matic Network as a layer-2 solution, allowing developers on the RevPop chain to build their own decentralized applications.

And not just any Dapps, but social networks. “We’re developing a way in which a thousand social nets can be developed on top of this layer 1,” CEO Rob Rosenthal told Decrypt.

“If you use one, they change a rule, they do something you don’t like, you can instantly port your data from one to another, or back again, because you hold the keys,” he said. “All of that data belongs to you.”

While RevPop—which is due to launch a testnet in the coming months—is also building its own social network, it’s making the project open-source in what it’s calling the “Facebook killer kit” so that others can develop their own social networks on its blockchain.

“This will allow developers everywhere to reach into, and contribute to, the RevPop layer-1 database and be a part of an ecosystem designed to return data control back to users,” Matic Network COO Sandeep Nailwal said in a press release. “Users are hungry for this kind of self-sovereignty.”

“The newest and most active part of the internet has been colonized by a handful of companies who grab data from users and keep it, and profit by it,” Revolution Populi Chief Visionary Officer and Yale computer science professor Dr. David Gelernter told Decrypt. “Our Project aims to return digital rights and power to the people by means of a decentralized database built on blockchain, and a growing, decentralized world of social net and related apps along with it.”

This will be facilitated through the use of the forthcoming RevPop token—with users of the company’s own social network receiving the token directly from advertisers.

While that’s kind of like how Brave rewards users with BAT, Rosenthal, a former Goldman Sachs vice president with a background in securities, said the team envisions it become something of a utility token for the platform.

But other social networks built atop RevPop’s database can pursue alternate funding models due to the project’s open-source design. The result, believes RevPop, is an internet where Facebook and Twitter have more competition.

“It won’t be a monopoly anymore,” said Rosenthal. “It will be broken up through free market competition. I hope.”

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Ethereum Price Moves up to $1,200 as Demand Threatens to Outstrip Supply on Exchanges

The price of Ethereum, the second-largest cryptocurrency by market capitalization, has moved back up to the $1,200 mark after falling below $1,000 earlier this week at a time in which outflows from cryptocurrency exchanges suggest demand could outstrip supply. According to Nuggets News’ Alex Saunders, data shows that exchange reserves have fallen by 3 million […]

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The price of Ethereum, the second-largest cryptocurrency by market capitalization, has moved back up to the $1,200 mark after falling below $1,000 earlier this week at a time in which outflows from cryptocurrency exchanges suggest demand could outstrip supply.

According to Nuggets News’ Alex Saunders, data shows that exchange reserves have fallen by 3 million ETH over the last two days, with 1 million ETH leaving crypto trading platforms on January 14, and 2 million leaving them the following day.

Saunders shared data from on-chain analytics firm CryptoQuant and pointed out that at this rate exchanges could soon run out of ETH.

Price predictions for ETH have been extremely bullish – with former Goldman Sachs executive and Real Vision CEO Raoul Pal saying he believes Ethereum could go to $20,000 this cycle based on Metcalfe’s law – and as such Saunders believes HODLers will not be selling their funds between $1,000 and $2,000 per ETH.

Some other data providers seemingly show that Ethereum reserves on cryptocurrency exchanges have dropped by 42.5% since mid-May. The analyst interprets the data as suggesting an incoming bull run to a new all-time high for ether, as “we all know what happened when demand outstripped supply of BTC.”

The price of bitcoin surged from about $12,000 to a new all-time high near $42,000 after reserves on exchanges dropped by about 4.5% and corporate adoption surged as MassMutual, MicroStrategy, Square and others bought BTC as a hedge against inflation and currency debasement.

Rafael Schultze-Kraft, CTO at data firm Glassnode, countered Saunders saying his data was “nonsense,” saying that a sudden drop of over 2 million ETH from a cryptocurrency exchange weren’t withdrawals, and that “exchange flows are completely within their normal range.”

It’s believed the 2 million ETH were moved to a new Bitfinex cold wallet for Ethereum that cryptoQuant did not account for. That, however, does not explain the 1 million ETH outflows seen the day before.

It’s worth noting that the decentralized finance (DeFi) space has been booming, and more Ethereum users could simply be withdrawing their funds to interact with these protocols on-chain.

Featured image via Unsplash.

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