Huobi Global cryptocurrency derivatives
What is Huobi Global?
Huobi Global derivatives trading platform focuses on the security and protection of customers, as well as a reliable and secure platform, so the company has adapted special security procedures. It uses offline cold storage, multi-level verification processes, and collaboration with Goldman Sachs and industry experts. Huobi has never been hacked, although it is a lucrative target for attackers. The exchange takes these threats seriously and does everything possible to protect the exchange from hacks. It is also worth mentioning that Huobi holds user funds in cold storage to limit access to them, and uses multi-level verification processes and cooperation with Goldman Sachs and industry experts. The trading platform is simple and straightforward and offers trading using leverage (clients must sign supplementary agreement).
In addition, there is a mobile application. Unlike other exchanges, the trading platform displays coin statistics and informs traders. The exchange offers a wide range of coins to trade in many markets and many users choose to place their funds and trust the company due to their proven track record, their impressive team and their profitable opportunities. beyond regular exchanges.Huobi cryptocurrency derivatives trading is also available for beginners as there is a detailed guide that provides step by step instructions.
What are derivatives
The word "derivative" means something secondary, a derivative tool from something. Those. the price of a derivative is tied to some market value (underlying asset), and often with the use of leverage, which makes it an extremely risky trading instrument. In the general case, a derivative is a contract that obliges or gives the right to agree to the proposed - while fixed, they cannot be changed retroactively - terms of the transaction.
Huobi cryptocurrency derivatives are as popular as in many other countries!
The formulation of the fact of separation in time of delivery and payment is of key importance for understanding the essence of derivatives. As confusing as the definition may sound, derivatives contracts are prepaid transactions. All types of derivatives have an initial function - to hedge investment risks. This is the main purpose. It helps to launch a protective mechanism, where today a transaction is made with a future perspective, subject to a stable contract price. Either way, the parties benefit. When the concluded agreement is prematurely terminated by the depositor, his loss of money is minimal.
Other ways investors use derivatives:
- Earnings on executed contracts.
- Income through arbitrage - multidirectional positions opened on various markets or exchange platforms.
- Speculative profit obtained from the difference in the value of the selected derivative.
- Implementation of diversification of deposits in order to remove the risk of large damage when owning one asset.
- Receiving profit formed on the correction of prices of underlying assets. This is due to the high leverage integrated into the financial instrument. Even a minimal movement of the quote gives the investor a significant income.
The implementation of individual goals will be optimal if you work with a suitable type of derivatives. Investors need to understand the specifics of these options, which allows them to select the best tool for specific tasks.
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Huobi token complies with the EPC-20 standard, and its stock ticker is HT. It is a virtual currency that is used as an accounting unit on the Huobi cryptocurrency derivatives trading platform. At the same time, the token is traded not only on this exchange, but also on external trading platforms and exchanges. This token is one of the key elements of the Huobi exchange system. It is mainly used to pay commissions for trading operations, but there are other uses:
- as a regular instrument for margin trading
- for the purpose of earning on the exchange rate difference
- to invest in projects that seem promising
Also, Huobi Token holders have the opportunity to join the VIP club, which involves five levels of participation. At the first stage, a 10% reduction in the trading commission becomes available to the trader. At the fifth level, this figure reaches 50%. That is, depending on what level of membership the user has, he will have to pay a commission from 0.18% to 0.1%, which is significantly lower than the standard rate.
How to trade Huobi Global derivatives?
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To start trading using leverage, you need to select the "Margin" button at the top of the screen. Borrowed funds are available for both long trading (to increase the price of an asset) and short trading (to decrease the value). In the case of margin trading, you need to understand that this is a pendulum that makes an equally strong movement both in the direction of profit and in the direction of loss of funds.
Leveraged funds allow you to buy more cryptocurrencies for trading. But in case of an error in the forecasts, the losses will also be significant. With illiterate work with the market, using a margin, you can quickly lose a tangible amount.
Having entered the "Margin" section, you will need to perform the following steps to start trading:
- choose a currency pair
- replenish the margin account (using the "Enter" button)
- confirm the operation
- choose a transaction option
When the order is closed in plus, the trader returns the borrowed money to the exchange, and keeps the net earnings for himself. If any problems arise while trading on the Huobi exchange, users can contact the support service.
How to register ?
Register now and start Huobi Global crypto derivatives trading, registration itself does not take much time. All you need is an email or mobile phone. You can create an account for free and without identity verification within the framework of KYC.
To create an account on the Platform, click the "Register" button at the top corner of the Huobi website. After that, a simple form for submitting information will open. Fill in the proposed fields and click "Registration", after confirming that you have read the terms and policies of the resource.
In addition to the traditional email registration option, Huobi also provides the option to create an account using a mobile phone. Choose whichever is more convenient for you.
If everything is done correctly, a notification will appear about the need to confirm the email address by verifying the link or entering a code that will be sent to the specified email / phone.
To secure your account, it is recommended to set up two-factor authentication (2FA). Verification is not mandatory, but it makes it possible to increase the limits and increase security.
How to make a deposit?
The exchange is constantly working on improving and expanding the methods of depositing and withdrawing funds. And if earlier, it was possible to work on the exchange only through cryptocurrency, today the Platform makes it easy to deposit and withdraw fiat money. You can deposit, transfer and withdraw funds from Huobi cryptocurrency exchange accounts in the “Deposit & Withdrawal” section. The link to the section is in the "Balance" tab. By clicking on this item, the user will be taken to a page where there is a list of available cryptocurrencies. All assets that are traded on the exchange are also available for replenishment. Therefore, a trader can make a deposit in the cryptocurrency that he has available. For this, a unique crypto wallet address is used. It can be copied to the clipboard or saved by scanning the QR code. The minimum deposit amount for a particular currency is indicated at the bottom of the page.
As a result, to replenish the account, you must perform the following steps:
- select the desired digital currency
- click on the "Deposit" button on the right side of the page
- copy the cryptocurrency address and transfer funds to it from another wallet
List of derivatives of Huobi Global
USDT Margined Futures. There is an expiration date for each USDT Margined Futures and no funding fees will be charged. Upon expiration of the futures contract, all open positions will be closed at the arithmetic mean of the index price during the last hour, realizing spread delivery rather than physical delivery.
USDT margin swaps. Like the margined spot market, its price is close to the index price of the underlying asset. The main mechanism for fixing the spot price is based on the financing fee. There is no expiration date for USDT margin swaps. USDT margin swaps are calculated every 8 hours and the current period funding fee and unrealized P&L will be combined into realized PnL after settlement and transferred to the user's account balance.
Difference Between USDT Margin Contract and Coin Margin Contract
- Quote unit: USDT Margin Contract is denominated in USDT while Coin Margin Contract is denominated in USD.
- Margin Currency: All USDT margin contract pairs use USDT as margin. Users could trade various USDT margin contracts with USDT. All coin-margin contracts use the underlying asset of each contract as margin, so users must hold the respective token in order to trade.
- Contract Value: The USDT contract's face value corresponds to its underlying asset. For example, the face value of each BTC/USDT contract is 0.001BTC. For a coin margin contract, the value of each contract is in US dollars. For example, the face value of each BTC/USD contract is 100 USD.
- P&L Currency Calculation: All types of USDT margin contracts use USDT to calculate P&L, while coin margin contracts use their underlying asset.
Huobi Futures.Users can profit from both rising and falling prices of digital currencies by going long or selling short based on their own judgment. Huobi Futures accepts spread delivery. When futures expire, all open positions will be closed at the arithmetic average price of the last hour based on the index, not physical delivery. digital currency.
There are a large number of currency pairs available on Huobi Global crypto derivatives trading platform. There are also different types of trading. But regardless of the type of trader's activity, he will pay a fixed trading commission for transactions. It is 0.2% for both the seller and the buyer. If you trade the platform’s internal token (HT), then the commission will be lower within the “support system”.
The trading terminal has good functionality and allows clients to build various charts, use options to set them up, and choose time periods. You can also find technical indicators on the platform. Clients can place market and limit trades and carry out Huobi Global derivatives trading from their mobile device. Among the main advantages are:
- Active development.
- Service centers around the world.
- Professional system for evaluating blockchain assets.
- Huobi has its own compensation fund. It performs the function of insurance in case of hacking and theft of funds of registered traders. If digital money disappears, the fund will pay the necessary amounts in accordance with the rules of the platform.
- You can trade on the exchange without passing verification. This facilitates the process of working on the site, and makes it attractive to a large part of the community.
- High level of protection. To avoid theft of funds by hackers, all cryptocurrencies belonging to users are moved to “cold” multi-signature wallets. To increase the level of security, features such as linking an email address to an account, activating Google Authenticator and connecting SMS authorization during login to the platform website have been added.
- The platform is multi-currency and offers a large number of useful features.
- The presence of loyalty programs that allow you to reduce commissions.
Huobi is actively developing and monitoring current trends. A strong team, the introduction of new options, adequate commissions - all this speaks in favor of the platform and adds respectability to it.
Get acquainted with this platform and evaluate the opportunities to earn income!