BitMEX, OKEx, Huobi — A Deep Comparative Analysis of Derivatives Markets

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The cryptocurrency derivatives market has evolved significantly since BitMEX and OKCoin launched their futures trading platforms back in 2014. For nearly a decade, the market was dominated by two key players: BitMEX and OKEx. However, in late 2019, Huobi entered the arena with a hastily deployed outsourced futures product, aiming to generate new revenue streams amid mounting operational pressures. This move reshaped the competitive landscape and prompted a closer look at how these three platforms stack up in terms of market depth, transparency, and user trust.

Based on an in-depth analysis using third-party data—including findings from Alameda Research’s July 2019 report on real trading volumes—this article evaluates BitMEX, OKEx, and Huobi across four critical dimensions: user scale, derivatives trading volume, K-line processing, and wicks/spikes (market manipulation indicators). Alameda Research, one of the largest liquidity providers in the digital asset space, used six distinct metrics to assess the authenticity of exchange-reported volumes. Their methodology offers a more objective benchmark than many domestic market trackers, making it a reliable foundation for this comparative study.


User Base: BitMEX ≈ OKEx > Huobi

When it comes to user scale in crypto derivatives, BitMEX and OKEx have long held dominant positions. Both platforms emerged from the intense competition between 2014 and 2016 and have consistently accounted for over 80% of global futures trading volume during peak periods.

Long-term, Huobi may close this gap by migrating more of its spot users into derivatives. But for now, its ecosystem lacks the depth and sophistication seen on BitMEX and OKEx.

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Futures Trading Volume: BitMEX = OKEx >> Huobi

Trading volume is a key indicator of market health—but only if the data is trustworthy.

After adjusting Huobi’s figures by dividing reported volume by two (to align with standard practice), we find that OKEx and BitMEX each have approximately 2.2 times the real futures trading volume of Huobi.

This discrepancy highlights a crucial point: while raw numbers may look impressive, they can be misleading without standardized reporting.


K-Line Processing: BitMEX = OKEx >>> Huobi

In derivatives trading, K-line accuracy directly impacts traders’ ability to assess market depth and volatility.

Both BitMEX and OKEx handle liquidations by routing forced sell orders into the open market. These trades are executed at prevailing prices and reflected transparently on the K-line chart—preserving data integrity.

Huobi, however, uses an internal matching system for liquidations. According to its official documentation:

"Since forced liquidations bypass the public order book, the execution price is not displayed on the K-line. Moreover, the liquidation price does not represent the actual market execution price."

This means Huobi excludes liquidation trades from its K-line data—effectively smoothing out price spikes and hiding extreme volatility.

For example:

This practice—known as K-line optimization—artificially improves perceived market depth and misleads traders about true risk exposure.

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Wick & Spike Handling: BitMEX = OKEx >> Huobi

Market wicks (or “spikes”) often signal sudden liquidity crunches or coordinated liquidations. How exchanges handle them reveals much about their resilience.

During a major market swing on May 17, 2019:

At first glance, Huobi appears more stable. But deeper analysis shows otherwise: BitMEX’s lower spike was due to index price mechanics (its index sources dropped sharply), not weak liquidity. In reality, BitMEX maintains deep order books—especially in BTC.

More troubling is Huobi’s handling of other assets:

This raises serious concerns: either the data was never recorded, or it was retroactively altered. Either way, it undermines trust in Huobi’s market integrity.

Unlike BitMEX and OKEx, where all trades—including liquidations—are visible on-chain or via public APIs, Huobi’s lack of transparency makes independent verification nearly impossible.


Frequently Asked Questions (FAQ)

Q: Why is two-way volume calculation misleading?
A: Counting both entry and exit trades doubles reported volume artificially. Industry standards only count one side (e.g., opening trade). Without normalization, comparisons across platforms are invalid.

Q: Does K-line optimization affect trading decisions?
A: Yes. Traders rely on K-lines to identify support/resistance levels and volatility patterns. Hiding liquidation prices distorts technical analysis and increases risk of unexpected losses.

Q: Can we trust exchange-reported liquidation prices?
A: Only if they reflect actual market executions. Platforms like BitMEX and OKEx publish real-time liquidation feeds; Huobi does not—making its data less reliable.

Q: Is Huobi improving its transparency?
A: There’s limited public evidence of meaningful change. While some UI improvements have been made, core issues around data visibility and K-line integrity remain unresolved.

Q: How do elite trader metrics help retail users?
A: On transparent platforms like OKEx, users can track positions and behavior of top traders—offering valuable sentiment signals without relying solely on opaque internal systems.


Final Verdict

Despite aggressive marketing and rapid user acquisition, Huobi lags far behind BitMEX and OKEx in true market depth and transparency. Its practices—such as two-way volume reporting, K-line manipulation, and opaque liquidation mechanisms—create an illusion of strength that doesn’t hold up under scrutiny.

While new entrants are welcome in the evolving crypto derivatives space, sustainable growth must be built on trust, fairness, and open data—not shortcuts that mislead users.

For traders seeking reliable markets with genuine depth and transparency, platforms like BitMEX and OKEx remain the gold standard.

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