Learn about this article: How to open a contract multiple in Huobi.com

This article will deeply analyze the Huobi contract multiple activation process so that users can make full use of the advantages of leveraged trading. Understanding how to safely and effectively open contract multiples is crucial for traders to fully grasp the contract functions of Huobi.com. This article will guide you step by step through the steps of opening a contract multiple and provide necessary precautions to help you avoid potential risks.

Learn about this article: How to open a contract multiple in Huobi.com

1. Introduction to the contract multiple

Huobi contract multiple refers to the multiple of leveraging the original margin requirement when conducting contract trading to increase potential profits (also increasing potential losses).

The higher the multiple, the greater the leverage, and the greater the potential returns and risks.
• 2. Steps to open a contract multiple

1. Preparation

• Register Huobi account and complete real-name authentication.
• Recharge the account, the account balance meets the margin requirement required for opening multiples.

2. Enable permissions

After logging in to Huobi.com, click "Assets" in the upper right corner and select "Contract Account".
• Click "More" and select "Permission Management".
• Click "Spot Contract" and select to activate the "Contract Multiple" permission.

3. Confirm the application for opening

Read the risk warning to ensure that you understand the risks of contract transactions.

• Enter the fund password to confirm the application.
• Waiting for review, the contract multiple permission can be activated after the review is passed.

III. Contract multiple levels

• Huobi.com contract multiples are divided into different levels, and each level corresponds to different margin requirements and leverage multiples.
• Usually, the higher the level, the more margin required and the greater the leverage multiple.

4. Select the contract multiple

After activate the contract multiple permission, you can select the contract multiple on the trading page.
• Select the appropriate contract multiple based on your own risk tolerance and trading strategy.
• The higher the leverage multiple, the greater the risk of liquidation.

5. Notes on note

Contract multiples are only applicable to limit orders and market orders, and are not applicable to stop-profit and stop-loss orders.
• Contract multiples will amplify potential returns and losses, so be sure to use them with caution.
• Continue to pay attention to position risks regularly and stop profit and stop losses in a timely manner.

IV. Risk of contract multiples

Amplify the risk of loss: the higher the contract multiple, the greater the potential loss.
• Risk of liquidation: If the market price fluctuates violently and the margin is not enough to cover the loss, liquidation will occur.
• Risk of forced closing of positions: Huobi.com will force closing of high-risk positions to control risks.

5. Contract multiple strategy

When using contract multiples, a reasonable trading strategy is required.

• Perform to market trends, carefully select contract varieties and opening directions.
• Control position risks and avoid being too concentrated.

VI. FAQ

1. What is a funding fee Rate?

• The funding rate refers to the fees paid or charged by the position holder to balance the positions of both long and short sides.
• When the long position ratio is high, the long pays the capital fee rate to the shorts. vice versa.

2. Will the margin requirements change?

• Margin requirements will be dynamically adjusted based on factors such as the volatility of the underlying asset, contract multiples, etc.

3. Can the contract multiple be modified at any time?

• Contract multiples can be modified at any time before opening a position. The contract multiple cannot be modified for open positions.

4. How much money will be lost after the liquidation?

• After the liquidation, all available funds in the account and the remaining margin in the position will be liquidated, and the amount of loss is the principal part of the loss of the position liquidation loss.

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