How to open contract cooling-off period on Huobi

How to Open Contract Cooling-Off Period on Huobi

Huobi Global, one of the world's leading digital asset exchanges, offers a cooling-off period for its perpetual contract trading services. This period allows users to cancel their open positions and have their funds returned, subject to certain conditions.

Opening the Cooling-Off Period

To open the contract cooling-off period on Huobi:

1. Log in to your Huobi account. Access the Huobi website and sign in to your account using your registered email address and password.
2. Navigate to the Contracts tab. Once logged in, hover over the "Trade" tab in the top navigation menu and select "Contracts" from the dropdown options.
3. Select the contract you wish to close. On the Contracts page, locate the specific contract you want to close and click on it.
4. Identify the "Close Position" button. Once you've selected the contract, you will see an option to "Close Position" located near the top right corner of the page.
5. Enter the amount you wish to close. In the confirmation window that appears, enter the amount of the position you wish to close.
6. Select the "Cooling-Off Period" option. After entering the amount, you will see two options below: "Close Now" and "Cooling-Off Period." Select the "Cooling-Off Period" option.
7. Confirm your selection. Once you have selected the "Cooling-Off Period" option, a confirmation window will appear. Carefully review the details and confirm your selection by clicking on the "Confirm" button.

Conditions for Contract Cooling-Off Period

Once you have initiated the contract cooling-off period, your position will be marked as "Cooling-Off" and the following conditions will apply:

• Position value calculation: The position value during the cooling-off period will be calculated based on the Mark Price.
• Margin call prevention: The position will not be subject to margin calls during the cooling-off period.
• Time limit: The cooling-off period typically lasts for 24 hours.
• Cancellation: You can cancel the cooling-off period within 24 hours by opening a new position in the same contract with an opposite direction.
• Auto-close: If you do not cancel the cooling-off period within 24 hours, the position will be automatically closed at the market price at the end of the cooling-off period.
• Funds return: After the cooling-off period has ended, the funds from the closed position will be credited back to your Huobi account.

Benefits of Contract Cooling-Off Period

The cooling-off period offers several benefits to Huobi contract traders:

• Risk management: It allows traders to manage their risk by giving them a chance to exit positions before potential losses accumulate.
• Position adjustment: It provides an opportunity to adjust positions or close them completely in response to market conditions.
• Pause for reevaluation: It allows traders to reassess their trading strategies and make more informed decisions.
• Market volatility protection: It protects traders from extreme market volatility by pausing their positions during periods of uncertainty.

Note:

It's important to note that the contract cooling-off period is a temporary and optional feature. Traders should carefully consider their trading strategies and market conditions before utilizing this feature.