Introduction to Huobi Contract Trading
Huobi DM (Derivatives Market) offers advanced contract trading for crypto enthusiasts. This guide walks you through the step-by-step process of trading contracts via the Huobi mobile app, covering account setup, fund transfers, position opening, and closing strategies.
Step-by-Step Trading Process
1. Accessing Contract Trading
- Open the Huobi app and tap "Contract" in the bottom navigation bar.
- New users must first enable contract trading by selecting "Enable Contract Trading".
2. Account Verification Requirements
To activate Huobi DM:
- Complete identity verification (if pending).
- Pass risk assessment certification.
- Agree to the User Service Agreement and complete a qualification quiz before final activation.
3. Transferring Funds
- Navigate to "..." → "Margin Transfer".
- Select transfer from "Spot Account" to "Contract Account".
- Choose the cryptocurrency, enter the amount, and confirm the transfer.
💡 Pro Tip: Monitor your Total Equity displayed top-left post-transfer.
4. Selecting a Contract
- Tap the menu button (top-left) to view available contracts (e.g., "BTC Quarterly 1228").
- Choose based on your trading strategy and market analysis.
5. Opening a Position
- Long (Bullish): Select "Buy/Long".
- Short (Bearish): Select "Sell/Short".
Adjust leverage (up to 125x) and enter:
- Limit Order: Specify price.
- Market Order: Use current best price.
👉 Master leverage trading with our advanced guide
6. Monitoring Trades
- Open Positions: View under "Holdings".
- Pending Orders: Check "Current Orders" (cancelable before execution).
- History: Track weekly activity via "Records".
7. Closing Positions
- Switch to close position mode.
- Long Positions: Tap "Sell/Close Long".
- Short Positions: Tap "Buy/Close Short".
Enter the amount and confirm.
Key Features of Huobi DM
- Multi-Currency Support: Trade BTC, ETH, and other top cryptocurrencies.
- Flexible Leverage: Adjust based on risk tolerance.
- Real-Time Data: Market depth and candlestick charts available.
👉 Compare crypto derivatives platforms
FAQ Section
Q1: Is Huobi DM available globally?
A: Huobi DM serves most regions except restricted jurisdictions (e.g., the U.S.). Check local regulations before trading.
Q2: What’s the minimum deposit for contract trading?
A: No set minimum; ensure sufficient collateral for your selected leverage.
Q3: How are funding rates calculated?
A: Rates vary by market conditions and are applied every 8 hours for perpetual contracts.
Q4: Can I use leverage with limit orders?
A: Yes—leverage applies to both limit and market orders.
Q5: What happens if my position is liquidated?
A: The system auto-closes positions when margin levels drop below maintenance thresholds.
Final Tips
- Risk Management: Start with lower leverage to minimize liquidation risks.
- Market Research: Analyze trends using Huobi’s built-in charts.
- Stay Updated: Follow Huobi’s announcements for new contract listings.