Huobi DM is a kind of digital currency derivatives. Users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment.
The Huobi DM Contract adopts spread delivery. When the contract expires, all open positions will be closed at the index-based last-hour arithmetic average price, instead of physical delivery.
BTC/ETH/EOS/LTC/XRP/BCH/TRX/BSV/ETC Contracts are available on Huobi DM. Contracts are priced in USD, with corresponding digital currency( BTC/ETH/EOS/LTC/XRP/BCH/TRX respectively) as margin to open positions, and PnL is also settled in corresponding digital currency( BTC/ETH/EOS/LTC/XRP/BCH/TRX).
Contract Face Value
Each contract represents a certain amount of digital currency.
The face value of a BTC contract is $100 and the minimum price change in order book is aggregated to $0.01.
The face value of a XRP contract is $10 and the minimum price change in order book is aggregated to $0.0001.
The face value of a TRX contract is $10 and the minimum price change in order book is aggregated to $0.00001.
For other contract varieties, unless stated, the face value of other contract varieties shall be $10 and the minimum price change in in order book are aggregated to $0.001.
Weekly, bi-weekly and quarterly contracts are available in Huobi DM.
Weekly contracts will be settled on imminent Friday;
Bi-weekly contracts will be settled on next Friday;
Quarterly contracts will be settled on the last Friday of March, June, September and December.
Note: The delivery date of each contract shall not be identical with each other, and it is based on Singapore time (GMT+8). Normally speaking, the system will form a new Weekly or Bi-weekly contract after settlement every Friday. However, in terms of a Quarterly contract, when settled on the-third-to-last Friday, there are only two weeks left before the expiration, in other words, the Quarterly contract turns into a Bi-weekly one, meanwhile, if it forms a new biweekly contract, there will be two contracts having the same expiration date. Therefore, for quarterly contracts, after settlement on the-third-to-last Friday of March, June, September and December, the system will form a new Quarterly contract instead of a Bi-weekly one.
- After the delivery at 16:00 on December 13, 2019 (GMT+8), because 1227 quarterly contract is only 2 weeks before the delivery date, the system will generate a new quarterly contract: 0327 quarterly contract; the original 1227 quarterly contract will become 1227 bi-weekly contract; the original 1220 bi-weekly contract will become 1220 weekly contract.
- After the delivery at 16:00 on every Friday (GMT+8), the K line of new weekly contract will continue on the K line of the original weekly contract; the K line of new bi-weekly contract will continue on the K line of the original bi-weekly contract. In the same way, the K line of new quarterly contract will continue on the K line of the original quarterly contract. For trading information, users should refer to K-line of corresponding contract.
Choices of leverage:1x, 5x, 10x, 20x
For example, if users choose BTC weekly contract with 10x leverage, users can take 1 BTC as the margin to open long/short 10 BTC positions.
Before opening a position, users need to select the leverage. Once the leverage is selected, the weekly, bi-weekly and quarterly contracts should all use the same leverage. Users cannot change the leverage unless they hold no position and have no pending orders.
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