How to Get Started HUOBI OPTIONS

 


Huobi Global rebranded its options products from Huobi Derivatives Warrant to Huobi Options. This decision marks the establishment of a new and better brand identity for the Huobi community and reflects Huobi’s firm commitment to improving the user experience.

What are options?
Options are financial contracts that give buyers the right to buy or sell an asset at a predetermined price, either before or at a certain date.

Unlike futures, buyers of an options contract are not obligated to settle their position. They will exercise their options contract only when doing so is financially beneficial. Therefore, options can enable traders to protect themselves against unfavorable price movements and magnify profits. To purchase options, traders only need to pay a small premium to the option seller.

What are Huobi Options?
Huobi Options are customized over-the-counter Bitcoin, Ethereum, and Dogecoin options products, and can be purchased on the Huobi Global official website and mobile app. They differ from traditional options products in that Huobi is the sole issuer of Huobi Options. Therefore, users can only be a buyer of Huobi Options. 

In addition, Huobi Options are cash-settled, which means that physical delivery of the underlying assets is not required when options are settled.

Huobi Options are intuitively designed to offer diversified products with maximum flexibility to meet users’ needs in different market conditions. The Huobi Global mobile app offers both Lite and Pro trading interfaces for options, providing both novice and experienced traders with an enhanced trading experience.

Why choose Huobi Options?
Huobi Options are versatile financial products. Users can use Huobi Options to speculate on future price movements of an underlying asset for income at a much lower cost than the asset itself, or hedge the risk exposure of their existing positions. Huobi Options offer high leverage with no liquidation risks. The most that a user can lose with an option is the premium paid upfront, even if the price heads drastically in the other direction.

Compared to other options products on the market, Huobi Options have the following key advantages:
  • Industry-low Premiums — By partnering with several experienced market makers, Huobi Options can offer users the most competitive premium prices on the market.
  • Flexibility — Huobi Options are fully customized over-the-counter options products. This means that users can buy options with customized strike prices and expiration dates that may be impossible at other exchanges.
  • Diversified Products — Unlike many other exchanges, which only have European vanilla options available, Huobi offers a variety of options products, including American options, European Spread options, and Touch options. Most notably, Huobi is the first exchange to introduce Dogecoin options and Touch options.
  • Reliable Liquidity — Huobi is the sole issuer of Huobi Options products. In other words, Huobi Options have an uncapped supply, and users can always obtain a quotation with any customized strike price and expiration date. In the case of European Spread options, holders can sell their options and exit positions at any time before the expiration date, without having to worry about their inability to sell due to lack of quotations.
  • No Fees — There are no trading fees, settlement fees, or liquidation fees of any kind when users trade Huobi Options. Users only need to pay the option premium when they purchase an option.

Introducing a new Lite version

On Jan 28, 2021, Huobi introduced a new Lite version of its trading interface on the Huobi Global mobile app. This new interface makes options trading much easier for new users, especially those with no prior knowledge or experience in options trading. Users do not need to understand all of the options-related jargon and phrases on the Lite version. They can follow the five simple steps below to make a trade:

1. Select whether the underlying asset’s price will go up or down.
2. Enter the answer to the question: When will it happen?
3. Enter the answer to the question: What price will the underlying asset’s price be when it happens? (Optional)
4. Enter the quantity of the options contract or the option premium to buy.
5. Confirm the order details and complete the purchase.


A deeper look into Huobi Options

Huobi Options offers three options products: American options, European Spread options, and its industry-leading Touch options.
  • American options enable users to exercise their options at any time before or on the expiration date. Holders of American options have limited downside, as maximum losses are limited to the premium paid for the options contracts. They have unlimited upside potential when it comes to call options, which go up in price as the underlying asset goes up in price. To lock in profits, users can either manually exercise the options at a certain time before expiration or set up a target price that triggers automatic exercise once the price of the underlying asset hits it.
  • European Spread options are European-style options that help users realize an options strategy called vertical spread. This options product allows users to set up a strike price interval to cap profit potential, in exchange for a lower premium. Though European Spread options cannot be exercised before the expiration date, users can sell the option in advance to lock in their profits.
  • Touch options are a set of exotic options in which payoff depends on whether the underlying price touches the target price (also called barrier price) at any point before the expiration date. Touch options enable users to profit from a simplified yes-or-no market forecast. Huobi now offers Double One-Touch and Double No-Touch options. Double One-Touch options give the buyer a fixed payout if the underlying price touches or exceeds the barrier prices (either above or below) at any time before expiration. Double No-Touch options give a fixed payout if the underlying price remains within the barrier levels throughout the entire period until the expiration date.

How to buy Huobi Options

You can buy fully customized American options, European Spread options, and Huobi’s industry-leading Touch options on the Huobi Global website. They can also buy intraday and long-term at-the-money American options on the Huobi Global mobile app.

Here is a step-by-step guide on how to purchase a Huobi option:

On the Huobi Global website:
1.  Go to Huobi Global’s official website: https://www.huobi.com/en-us/,
2.  Select the options product from the Option Selection Bar.
3.  Click on the Asset icon located at the upper left corner to select the underlying asset of the options contract.
4.  Set up the options contract specifications.
5.  Check the box to agree to the Derivatives Warrant Agreement, click “Get a quote” to get a price offer for the options contract. Click “Buy” to purchase the options contract.





On the Huobi Global mobile app:

1. Open the Huobi Global app, log in, go to “Derivatives”, then tap “Options” to open the trading interface.
2. Choose “Pro” or “Lite”

Pro:
1. Tap the Index icon located at the upper left corner to select the underlying asset of the options contract.
2. Select the options contract duration from the Option Duration Bar.
3. Enter the quantity of the options contract in the blank box below the price chart.
4. Tap “Call” or “Put” to purchase the options contract.

Lite:
1. Select Up or Down of the underlying asset’s price.
2. Enter your expected time range.
3. Enter your forecasting price of the underlying asset.
4. Enter the quantity you wish to buy.
5. Confirm the order and complete the purchase.




Have any questions on Huobi Options or options trading in general?
Join the Huobi Options Telegram community by clicking below or emailing at: warrant@global-hgroup.com.


About Huobi Group
Huobi Group is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by liquidity and real-trading volume. Trusted by users in over 170 countries, Huobi is dedicated to improving financial freedom and inclusive access for all users. Huobi builds up an unmatched portfolio of crypto products and offerings. This includes trading and financial products, cryptocurrency and blockchain financial infrastructure solutions, education, data and research, social welfare, investment, incubation, and much more.



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