HTX (Huobi Global)
Total reviews 7
2 complaints
2.8
Unconfirmed company
huobi.li
Go to the website

Margin trading on the cryptocurrency exchange Huobi


Crypto Exchange Huobi Global offers not only spot trading, but also margin trading. To use this tool, you have to register on the company’s website huobi.com and undergo KYC verification. Margin trading involves using leveraged assets from the Huobi platform to cryptocurrency trading.

How do I start margin trading?

To start margin trading, the user must do the following:

  • Submit a loan request.
  • Open a position. It can be long or short.
  • Repay the loan along with the interest.

To request coins for leveraged trading, you need to log in to your account, go to “Margin” and select an account type. This can be cross or fixed. Cross-margin gives users crypto exchanges Huobi the ability to apply one account to different positions. When the 110% risk level is reached, the service liquidates the offer. At the fixed margin, which is allocated for the position, unredeemed earlier, the security is fixed. When more than one position is open and one is liquidated, the margin for the remaining options cannot compensate for the loss. The trader needs to replenish the margin for the losing offer.

Top 5 best cryptocurrency exchanges

Exchange Bonuses Registration
1

Until 4000 USD

Registration Bonus
2

Until 10000 USD

Welcome Bonus
3

2 USDT

Welcome Bonus
4

1000 USDT

Bonus for futures trading
5

0%

Fee for withdrawal to bank card

On the page that opens, you need to specify the pair and click on “Transfer”. It is possible to transfer all assets to the main balance in order to trade on margin. It is also possible to choose an asset of interest and specify the transfer amount in a special form. After transferring money to the margin balance, you can begin to draw credits. There is a “Loan” button on the panel for this purpose. After you click it, a window will open, where the maximum available for the loan on the main account will be displayed. In it you should specify the amount and select a token.

If the application is successful, the loan position will be displayed on the Huobi account. The trader will be able to view it in the “Account – Margin – Cross” section. There is also access to history. On the “Margin Orders – History” page, you can view the date and time the loan request was created. You can also switch to the “Cross” tab.

After receiving the loan, the trader can start margin trading. As on other platforms, long and short positions are available on Huobi. The first opens when the value of the coin is expected to increase. You have to buy tokens at a reduced price, sell at an increased price, and repay the credit with interest to earn on the difference in price. In the “Margin” section you can set Limit, Market or Stop Limit. You also have to choose a trading option:

  • Automatic borrowing and trading when an order is placed.
  • Automatic return of interest and borrowed tokens after order execution.
  • Manual Borrowing and Returns.

A short position is created when there is a probability that the price will decrease. It involves selling the token at a higher value and buying it at a lower price. If the credit is repaid after the transaction, the user will receive income earned on the difference in value.

Repayment

To make a refund of the loan and interest, you must go to the “Margin Balance”. A “Refund” button will appear on the new Huobi page. It will open a window with fields for the refund amount. If there are not enough funds, you need to top up your balance. The rate is calculated as a percentage of the amount for each hour. If coins are borrowed for less than 60 minutes, the service will round up the amount to the amount per hour.

Types of margin

There are 2 types of margin on cryptocurrency: so-called cross-margin and isolated margin. In the first case, it is distributed on the position using the entire amount on the available account. This protects against liquidation of positions that are unprofitable. PNLs that have been implemented can be used in adding margin for losing options. Isolated type means that margin is set aside for outstanding positions that have fixed collateral, individually. If there is not enough collateral to sustain the loss, the offer is liquidated. This method has a higher liquidation risk, but the loss is limited to the collateral and not the entire balance sheet.

5.00 / 1
Leave a review

Reviews

Site Map