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Huobi Futures Trading Rules

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2024-07-02 12:04:57622browse

Huobi futures trading is a leveraged trading method that allows investors to use margin to control a large number of underlying assets. The main rules include: Contract types: Perpetual Contracts and Quarterly Contracts. Margin: used to protect against losses, requirements depend on contract type and leverage. Leverage multiple: up to 125 times. The higher the leverage multiple, the greater the risk. Forced Liquidation: Occurs when the margin rate falls below a certain level to reduce losses. Position limit: Set to manage risk and depends on contract type and investor level. Trading method: Establish and close positions by opening and closing positions. Fees: Transaction fees include handling fees and fees.

Huobi Futures Trading Rules

Huobi Futures Trading Rules

Huobi Futures trading is a leveraged trading method that allows investors to use a small amount of funds to control a large amount of underlying assets. The following are the main rules for contract trading on Huobi.com:

  1. Contract Types

Huobi.com provides two contract types:

Perpetual Contract: There is no expiration date and positions can be held indefinitely.
Quarterly contracts: have a clear expiration date, usually the end of the quarter.

  1. Margin

Before conducting contract transactions, investors need to deposit a margin. Margin is used to protect against losses caused by market fluctuations. Margin requirements depend on contract type and leverage.

  1. Leverage multiplier

Huobi futures trading provides a leverage multiplier of up to 125 times. The higher the leverage, the greater the value of the underlying assets controlled by investors, but the greater the risk.

  1. Forced Liquidation

If an investor’s margin ratio (the ratio of margin to position value) is below a certain level, Huobi.com will force liquidate the position to reduce losses. The level of liquidation depends on the contract type and leverage.

  1. Position limit

To manage risks, Huobi has set a position limit for each contract. The position limit depends on the contract type and investor level.

  1. Opening and Closing

Opening: Establish a position by buying or selling a contract.
Closing: Close a position by selling or buying a contract in the opposite direction to the opening position.

  1. Transaction Fees

Contract transactions incur transaction fees, including handling fees and overnight fees. The handling fee is calculated based on the trading volume, and the overnight fee is calculated based on the position value and holding time.

  1. Risk Management

Contract trading carries high risks and investors should participate with caution. It is recommended to use risk management tools such as stop loss orders or reducing leverage.

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