Huobi currency-based contract tutorial

Nov 14, 2024 at 12:30 pm

Huobi Currency-Based Contract Tutorial

Introduction

Currency-based contracts, also known as inverse contracts or perpetual futures, are a type of derivative financial instrument that allows traders to speculate on the future value of a cryptocurrency without actually owning the underlying asset. They are similar to futures contracts, but instead of being settled in the underlying asset, they are settled in the contract's quote currency, which is usually a stablecoin such as USDT.

Huobi Global is one of the leading cryptocurrency exchanges that offers currency-based contracts. This tutorial will provide a step-by-step guide on how to trade currency-based contracts on Huobi.

Step 1: Create a Huobi Account

The first step is to create a Huobi account. You can do this by visiting the Huobi website and clicking on the "Sign Up" button. You will need to provide your email address, create a password, and agree to the terms of service.

Step 2: Verify Your Identity

Once you have created an account, you will need to verify your identity. This is a requirement for all Huobi users who wish to trade currency-based contracts. You can verify your identity by providing your government-issued ID and a proof of address.

Step 3: Fund Your Account

Once your identity has been verified, you can fund your account. Huobi supports a variety of deposit methods, including wire transfer, credit card, and cryptocurrency.

Step 4: Choose a Currency-Based Contract

Huobi offers a variety of currency-based contracts, including BTC/USDT, ETH/USDT, and LTC/USDT. You can choose the contract that you wish to trade by clicking on the "Contracts" tab on the Huobi website.

Step 5: Place an Order

Once you have chosen a contract, you can place an order. You will need to specify the order type, the order size, and the price. Huobi offers a variety of order types, including market orders, limit orders, and stop orders.

Step 6: Monitor Your Position

Once you have placed an order, you can monitor your position by clicking on the "Positions" tab on the Huobi website. You can view your open positions, your realized profit and loss, and your margin balance.

Step 7: Close Your Position

When you are ready to close your position, you can click on the "Close Position" button on the Huobi website. You can choose to close your position at the current market price or at a specified price.

Step 8: Withdraw Your Funds

Once you have closed your position, you can withdraw your funds from Huobi. You can do this by clicking on the "Withdraw" tab on the Huobi website. You will need to specify the withdrawal method and the amount that you wish to withdraw.