Crypto Wizards AMA With Huobi Derivatives Warrant
Guest:Paul
Introduction:
1.Why do we need to have Derivatives Warrants?
Ans:1.Why do we need to have Derivatives Warrants?
First of all, an option is an awesome tool to create various strategies which can’t be replaced by futures, we have now a big option market in the crypto world.
a)We found the format of exchange traded option is quite difficult for our clients to understand. We designed a more concise way to present options to suit their needs.
b)After we pact our product, we found we can sell the Derivatives Warrant cheaper compared with other exchange traded options.
c)Our clients need more flexible ways to trade options, they need touch option, barrier option, American option. Sometimes they want options with the specifics which can’t be found on an exchange, we offer more flexibility.
we are now the biggest hedger in lp mining
I use our warrant to solve the hedging problem of lp mining
after hedge the impermernant lost, you can enjoy the risk free eth based return
That’s why we need it
2.How should we understand Derivatives Warrant premium?
Ans:It’s like option premium, for our American option, you can regard it as a sunk cost or a cost in exchange for insurance. You can still realize the profit conveniently. For our European option, there is more flexibility. The price of option goes in the same way as underlying asset and with nice leverage and without the risk of liquidation.
when you hedge sth, you need to pay the price
the option premium is the price
when you use warrant as a sound leverage, you can have it as a hedging against the risk of liquidation
3.What’s the difference between Derivatives Warrant and traditional option?
Ans:We try to simplify it and keep the essence. For example, on our app, we simplify our options into an ATM American option. Client can trade direction with three clicks on our app.
we make our product suits all kinds of traders.
if you want to trade a certain price, you can think of touch option
if you want to have cheap leverage you can trade our spread
if you worried about liquidity, trade our american option
4.Why Derivatives Warrant can be a cheaper way to trade than other option?
Ans:Yes, it can. If you buy a spread from us, you only need to pay the spread and commission one time, rather than twice if you create it at the exchange. We don’t charge settlement fees now, so the total cost can be much cheaper.
We try to eliminate all the possible cost from our client
we dont charge commision from taker
we dont charge settlement fee
5.When can we have Derivatives Warrant as a more effective way to trade?
Ans:It covers a lot of unique situations. For example, you can trade a small range bound with our spread. You can bet on a big rally without worrying about the liquidation.
as we see, we can use it to hedge the lp risk
we can use it to trade leverage
we can use it to trade a single price
Twitter Segment:
1.Trading is risky nowadays, and it oftenly burns all of our funds while also exposing us to significant risk. So, could you elaborate on your trading options? Is there a safer approach for regular trading with Huobi Derivatives Warrant? What sets you from the contest?
Ans:if you trade options, a simple rule is you dont put more than 5% of your portfolio into it
as time value of option is expensive
as all trading
position control is core you consistent profit
2.I had a few queries after doing some research on your platform. So, could you clarify the distinction between a warrant and a perpetual swap? What should we do if we can’t decide between the American and European options? When is the optimum time to use one of these two methods?
Ans:It’s quite often to lose your position and profit when you have a right view. If you have an American option like 1 BTC call at 43000 expiring in 1 week, you are holding a 10x leveraged position at BTC. If the PTC price fell to 38000 during the week then going back to 45000 at the end, you will make a 2000 usd profit. It’s a bit tricky when you trade American options. You can’t sell it back, but you can realize the profit with futures. If u buy 40000 American put, and u want to lock the profit at 41000, u can buy half future, 1BTC option & long 0.5 BTC future. If prices go up, futures win, if prices fell then options win.
you can tell the difference between american option and european option from the chart above
if you worried about liquidty, think about american
if you want to close your position at calm market
go for european option
3.Why do you decide to give 0% fees on Huobi Derivatives Warrant? If you give 0% fees on trading Huobi Derivatives Warrant, how will your platform earned from trading Derivatives Warrant? What is the essence of trading Derivatives Warrant if you don’t charge anything?
Ans:we are the first exotic option seller in the crypto world
we want to set the standard
the standard is to eliminate all the unnecessary risk
and cost from our client
so we dont charge commmission
and settlement
those are unnecessary cost
we charge only on marker
4.What are the key milestones on your roadmap - both things you have already achieved and things that we can look forward to? Any partnerships and short/long term technical milestones that you want to talk about or bring some attention to???
Ans:lauch touch option is a milestone
next one will be the next cover call option
please keep watch
we have built many first in crypto world
we are also good content generator
5.The security system is the most crucial component in every project, so what can you tell us about the security system of Houbi Derivatives Warrant? Have you carried out his audit?
Ans:huobi have the perfect trackrecord in security
we dont have a security breach in past 8 years
as we have the highest security standard in the industry
so dont worry about security
Live Q&A:
1) Question : Sir I want to buy your token. is it listed
#pancakeswap?
#Binance
#Kucoin
#MEXC OR Any Exchangers??
Where can I buy your tokens now?? Can you tell us please?
Ans:if you want to buy warrant, option or creative product, please go to our platform
Huobi warrant!
2) What’s your main focus right now, are you focused on the community or market/Exchange or the products?
Ans:our main focus is to build product to suit all types of traders
espectially small traders
we believe serving small clients bring good to our crypto world
3) Do you have any plan for burning tokens in the future to reduce the supply of the token and increase its investment attractiveness thanks ?
Ans:we dont have token, but if you want to do lp mining, please use our warrant to hedge you lp position
as the eth almost double in the past month
do the hedging when you do the lp mining
4) Can you share your social media links so we can keep ourselves updated?
Ans:come and join our chat room, we have all kinds of indepth sharing, discuss and airdrop in our chatroom
5) Market volatility is a very serious problem. Now, can you give a brief explanation of the limitations this causes? What methods would you employ to reduce this to a minimum?
Ans:buying our product make the volatility a friend of you
you will find a lot of way to take advantage of market vol with warrant
come and learn!