Huobi Futures, the crypto derivatives unit of Huobi Group, said Monday it will offer trading in bitcoin options starting Tuesday, aiming to meet a surging demand from traders to hedge against risks in cryptocurrency markets.

  • Options contacts on bitcoin (BTC) will be available for trading, starting from 10:00 UTC on Sept. 1, according to a press release
  • Huobi’s options will be quoted in tether (USDT), a dollar-backed stablecoin.
  • The exchange will offer weekly, bi-weekly and quarterly options contracts. Option purchasers will be able to exercise their right to buy or sell only on expiry.
  • A call option represents a right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell.
  • “Options will give users a robust set of tools to execute more sophisticated trading strategies,” said Ciara Sun, vice president of global business at Huobi Group.
  • Huobi’s decision to launch bitcoin options comes at a time when institutional participation in the cryptocurrency is growing and bitcoin is increasingly taking cues from traditional markets and central bank decisions.
  • Currently, Deribit is the largest bitcoin options exchange by open interest and daily trading volume. The exchange accounts for more than 85% of total options trading volume of $136 million, according to data source Skew.
  • Other exchanges competing for a share of bitcoin options trading include CME, LedgerX, Bakkt and OKEx, according to Skew.
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