Cryptocurrency futures trading has gained significant popularity since December 2017 when U.S. exchanges CBOE and CME launched Bitcoin futures contracts. A year later, Huobi Futures entered the market, offering contract products while allocating 20% of its revenue to HT token buybacks.
This guide provides a step-by-step tutorial for beginners looking to navigate Huobi Futures (HuobiDM). We'll focus solely on operational instructions—no complex concepts, risk assessments, or investment advice.
Step 1: Access HuobiDM Platform
Visit HuobiDM (hbdm.com) and click "Contract Trading" at the top-left corner.
- Platform Overview: Huobi Futures is a Singapore-based global derivatives trading platform serving qualified users.
Step 2: Enable Futures Trading
First-time users must complete identity verification under "Personal Certification."
- Initial Offerings: BTC contracts are available, with ETH, EOS, and LTC planned for future release.
Pricing & Units:
- Quote Currency: USD
- Trading Units: Choose between contract sheets (1 sheet = $100) or BTC amounts (e.g., selling 0.5 BTC).
Key Configuration Notes:
- Account Mode: Defaults to cross-margin (full-position collateral).
Contract Types: Weekly, bi-weekly, or quarterly contracts.
- Longer-dated contracts (e.g., quarterly) allow extended positions (~3 months).
- Near-expiry contracts converge toward spot prices.
- Automatic settlement occurs at expiration (refer to Huobi’s settlement rules).
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Step 3: Set Direction and Leverage
HuobiDM offers 1x–20x leverage. Beginners should start with 1x–5x.
Order Types:
- Limit Order: Set a specific price (slower execution, fixed price).
- Market Order: Matches best available price (faster execution).
Trading Actions:
- Buy/Long (Bullish): Profit if BTC price rises.
- Sell/Close Long: Exit bullish positions.
- Sell/Short (Bearish): Profit if BTC price falls.
- Buy/Close Short: Exit bearish positions.
Quick-select buttons (25%–100%) streamline order sizing.
Step 4: Monitor Positions and Adjust Collateral
Post-trade, check:
- Open Positions: Volume, unrealized P&L, collateral.
- Pending Orders: Unfilled limit orders.
- Order History: All past transactions.
Risk Management:
- Margin Calls: Transfer funds via "Capital Transfer" to avoid liquidation. Higher margin ratios reduce risk.
- Closing Positions: Secure profits or cut losses at current prices.
FAQs
1. What’s the minimum investment for Huobi Futures?
HuobiDM allows flexible trade sizes, starting from fractions of a contract (e.g., 0.01 BTC).
2. How does leverage impact profits/losses?
Higher leverage amplifies gains/losses. For example, 10x leverage means a 1% price change yields a 10% P&L.
3. When are contracts settled?
Weekly/bi-weekly contracts expire Fridays; quarterly contracts settle on the last Friday of March, June, September, or December.
4. Can I trade Huobi Futures on mobile?
Yes. Download the Huobi app and enable derivatives trading.
5. What’s the difference between cross-margin and isolated margin?
Cross-margin uses entire account balance as collateral; isolated margin restricts collateral to specific positions.
6. How are fees calculated?
Taker fees: 0.04%; Maker fees: 0.02% (subject to tiered discounts).
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Final Notes:
- Regularly monitor positions and adjust strategies based on market conditions.
- Practice with low leverage before scaling up.
- Huobi’s educational resources (e.g., webinars, help center) enhance trading proficiency.
Happy trading!