Most Chinese crypto exchange giants are scrambling for crypto futures trading dominance. The competition urges exchanges to iterate over the user experience and risk control of crypto futures products.

In July, Binance, the world’s largest cryptocurrency exchange by trading volume announced to launch futures trading. The futures trading feature comes after the firm rolled out margin trading on the platform, the leverage could be up to 20 times and will be offered for trading on bitcoin initially.

It has been nearly one year for crypto exchange giants Huobi and OKEx since they scrambled for the crypto futures market. In the first half of 2019, Huobi continuously upgraded the basic functions and rules of its crypto futures settlement, including stipulating the rights of key customers, launching commission functions, and increasing the upper limit of user’s holding.

Huobi announced in Weibo that it has been the leader in contract transaction volume and depth of trading all over the world. Though caused widespread doubt, Huobi broke the market dominance of OKEx in crypto futures transaction. Not long after the disclosure of contract trading volume, it is rumored that Huobi would launch perpetual swaps soon.

Huobi and OKEx are arguing about standard set for forced liquidation. When the guarantees invested by users are insufficient to offset in futures transactions, the platform will force users to close their transactions, so as to prevent losses from affecting the whole market. Every platform will set adjustment coefficient based on the risk control. For users with high leverage and large positions, this coefficient will be higher. This is the consensus of all platforms.

“OKEx used to play a dominant role, now there are Huobi and Binance, industry rules become reasonable when there is competition.”

Users are happy to see such a competitive situation. Competition makes the crypto exchanges pay more attention to user experience, and product iteration is faster and faster. Take OKEx as an example, the number of announcements on contract products issued in recent eight months has exceeded that over last year.

However, many users said that at present, the competition between exchange has not entered the stage of “benefiting users”, and is still in the contest of limited user traffic and transaction volume. No one has the status of establishing industry authority and standards. In crypto futures market, competition has become the main theme, and the core of competition is still the users as the users underspin transaction depth and volume.