Huobi contract trading guide

Huobi Contract Trading GuideIntroduction

Huobi is a leading global digital asset exchange that offers a wide range of crypto-related services, including contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of a cryptocurrency without actually owning the underlying asset. This can be a powerful tool for experienced traders who are looking to magnify their profits or hedge their risks.

How to Get Started with Contract Trading on Huobi

1. Open a Huobi Account: If you don't already have a Huobi account, you will need to create one. The process is quick and easy, and you can sign up for an account using your email address or mobile phone number.
2. Fund Your Account: Once you have created an account, you will need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from an external wallet or by purchasing cryptocurrency directly from Huobi.
3. Choose a Contract: Huobi offers a variety of contract types, including perpetual swaps and futures contracts. Perpetual swaps are contracts that do not have an expiry date, while futures contracts expire on a specific date in the future. Choose the contract type that best suits your trading strategy.
4. Place an Order: Once you have chosen a contract, you need to place an order. You can place a buy order if you believe the price of the cryptocurrency will go up, or a sell order if you believe the price will go down.

Steps to Follow While Trading

1. Manage Your Risk: Contract trading is a leveraged product, which means that you can lose more money than you deposit. It is important to manage your risk carefully by using stop-loss orders and position sizing.
2. Use Technical Analysis: Technical analysis is the study of historical price data to identify trading opportunities. There are a number of technical indicators that can help you to make informed trading decisions.
3. Follow the Market: Keep up with the latest news and developments in the cryptocurrency market. This will help you to make informed trading decisions and to avoid potential losses.
4. Practice: The best way to learn how to trade contracts is to practice. Huobi offers a demo account where you can trade with virtual currency. This is a great way to get started with contract trading without risking any real money.

What is Unique from Binance Contract Trading

1. Lower Fees: Huobi offers lower trading fees than Binance. This can make a significant difference to your profitability, especially if you are a high-volume trader
2. More Contract Types: Huobi offers a wider variety of contract types than Binance. This gives you more flexibility in your trading and allows you to find the contract that best suits your needs.