Huobi Futures - Coin-Margined Swaps guides

Huobi Futures - Coin-Margined Swaps guides

Huobi Perpetual Swap Tutorial (Web page)

1.Visit "https://www.huobi.bi/zh-cn/", click "Coin-Margined Swaps".
Huobi Futures - Coin-Margined Swaps guides
2.The system will prompt you to open contract trading service when you log into Huobi Futures for the first time.
Huobi Futures - Coin-Margined Swaps guides
3.Users need to complete Risk Verification first when open trading permission. Click “Next step”. Read through the user agreement, accept and submit the agreement. Then, you’ll come to the Quiz page, answering the questions and submit your answers. Finished all the three steps, users will get access to Huobi Futures and starttrading.
Huobi Futures - Coin-Margined Swaps guides
4. After successfully opening the perpetual swap, you can view the account UID, account security, rate and other information in the upper right of the navigation bar.
Huobi Futures - Coin-Margined Swaps guides
5.Users can find “Transfer” button below the candle graph around the right corner (or click the “Assets” button (on the top of the home page), turning into assets page and finding “Transfer” button here). If you do not have assets in your wallet, please click “buy coins” button, turning to Huobi OTC.
Huobi Futures - Coin-Margined Swaps guides
The transfer window will pop up, where users can transfer assets from “Exchange Account” to “Contract Account” by entering quantity and selecting corresponding digital currency (like BTC or ETH). The final step is to click “Confirm”.
Huobi Futures - Coin-Margined Swaps guides
*Notice: Currently, only spot accounts and Perpetual Swap accounts mutual transferring is available.

6.After transferring, users can find the total assets and account equity around the left corner on the top of the home page. After then, users can start to trade on Huobi Futures (if users want to hide their account assets and equity, please click the “eye” icon).
Huobi Futures - Coin-Margined Swaps guides
7.Please select the contract types you want to invest, for example, BTC Swap.
Huobi Futures - Coin-Margined Swaps guides
8.Perpetual Swap currently supports up to 125x leverage. If users use a high leverage of more than 30x leverage, they must first agree to the "high leverage agreement" and choose the leverage multiple according to the situation.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
After choosing leverage, users can select limit price order or BBO price order to open positions. If bullish on market, users can open long. If bearish, users can open short.
  • Limit order: enter the price and quantity to place an order; or select the "counter price", "optimal 5 files" and other methods, just enter the quantity to place the order. The limit order specifies the highest price the user is willing to buy or the lowest price he is willing to sell. After the user sets the price limit, the market will give priority to the price that reaches the users favorable direction. Limit orders can be used for opening and closing positions. Limit order can choose three effective mechanisms, "Post only", "Fill Or Kill", "Immediate O rCancel"; limit order is "always effective" when the mandatory mechanism is not selected.
Huobi Futures - Coin-Margined Swaps guides
Trigger order: enter trigger price, order price and amount of contracts to place orders.
Huobi Futures - Coin-Margined Swaps guides
9.Users can find filled orders in Open Positions, and unfilled orders in Open Orders which can be withdrawn before filled.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
10.When come to close positions, you can also select limit price or BBO price to close long/short positions.
Huobi Futures - Coin-Margined Swaps guides
11.Click the “Information” on the left top of navigation bar to check “Settlement”, “Insurance Fund”, “Funding ratio”, etc.
Huobi Futures - Coin-Margined Swaps guides
12.On the top right of “Trading Management” navigation page, Please click “Order History” and “Transaction History” to check orders and transaction histories in the last 3 months.
Huobi Futures - Coin-Margined Swaps guides

Huobi Perpetual Swaps Operation Guide(App)


1、Logging into Huobi APP, users can find Contact (entrance) at the bottom of the home page. Users can click the avatar in the upper left corner of "Home" to view account UID, account center, settings and other information and enter the contact customer service channel
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
2.Click "Contract" in the bottom navigation bar to enter the contract transaction, click the list button in the upper left corner to select Perpetual Swaps transaction.If you have not opened a contract transaction,please click the “Open contract trading” button to open the trading permission.
Huobi Futures - Coin-Margined Swaps guides\
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Click "Open" on the prompt page. On the contract activation page, identity authentication must be performed before the identity authentication is completed. After the identity authentication is completed, the user service agreement page is entered. After agreeing to the agreement, click "Next Step" to successfully open the contract transaction.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
3.After the Huobi contract has been opened, click [···] in the upper right corner of the interface, click "Margin transfer" in the list window, a notice about the full position mode will pop up, and click "OK".
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
On the "Transfer" page, choose to transfer from "Exchange" to "Swap Account", select the currency of the transfer, enter the amount to be transferred, and finally click "Transfer". Currently, only "Exchange" and "Swap Account" can be transferred.
Huobi Futures - Coin-Margined Swaps guides
4.After the transfer, you can see the current total equity of the account in the upper left corner. Then click the list button in the upper left corner to meet different contract types, and choose different types of Perpetual Swaps according to your needs, such as "BTC Swap".
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
5.Perpetual swaps currently support a maximum of 125 times leverage. If users use more than 30 times high leverage, they must first agree to the "High Leverage Agreement". Users can choose the leverage multiple according to the situation.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
After choosing leverage, users can select limit price order or BBO price order to open positions. If bullish on market, users can open long. If bearish, users can open short.
  • Limit order: enter the price and quantity to place an order; or select the "counter price", "optimal 5 files" and other methods, just enter the quantity to place the order. The limit order specifies the highest price the user is willing to buy or the lowest price he is willing to sell. After the user sets the price limit, the market will give priority to the price that reaches the users favorable direction. Limit orders can be used for opening and closing positions.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Limit order can choose three effective mechanisms, "Post only", "Fill Or Kill", "Immediate O rCancel"; limit order is "always effective" when the mandatory mechanism is not selected.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Trigger order: enter trigger price, order price and amount of contracts to place orders.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
6.Users can find filled orders in Open Positions, and unfilled orders in Open Orders which can be withdrawn before filled.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
7.When come to close positions, you can also select limit price or BBO price to close long/short positions.
  • Switch to the Close interface, select "Limit Order", "Trigger Order" or "Advanced Limit Order" to close the position, and click "Close Long" after confirmation (if you hold the Short Position, please click "Close Short").
  • Switch to the Positions interface and select "Flash Close".
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
8.Click [···] in the upper right corner of the interface to perform "Settings" and view more "Contract Information".
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
9. Click "Balances" in the lower right corner, select "Contract " and contract type, and you can view the Transactions of the corresponding contract type.
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides
Huobi Futures - Coin-Margined Swaps guides

Trading Rules of Perpetual Swaps


Trading time

Perpetual swaps transactions 7 * 24 hours. Currently, settlement is performed every 8 hours, and settlement takes place in three time periods of 00:00, 8:00 and 16:00(GMT+8). The transaction will be interrupted during the settlement period. The amount of time to interrupt a transaction depends on the time-consuming settlement of the system.

The interruption and recovery of perpetual swaps are differentiated by variety, that is, if the BTC variety is still being settled and other digital currency varieties have been settled, then other digital currency varieties can resume trading first.

 

Trading Types

Trading types can be divided into opening and closing positions. Each type can be further divided into two directions, long and short:

Open long position means that users buy a certain number of contracts when the index is bullish. When the transaction is concluded, long positions will increase.
Close long position means that users exits the market by offsetting owned buying contracts when the index is not bullish. When the transaction is concluded, long positions will decrease.

Open short position means that users sell a certain number of contracts when the index is bearish. When the transaction is concluded, short positions will increase.
Close short position means that users exit the market by offsetting the selling contract held currently when the index is not bearish. When the transaction is concluded, short positions will decrease.


Order types

Limit order: The user needs to specify the price and quantity of the order. The limit order specifies the highest price that users are willing to buy or the lowest price that they are willing to sell. After the user sets the limit price, the market will prioritize the transaction at a price that is favorable to the user. Limit orders can be used to open and close positions. The limit order can choose three effective mechanisms, "Post only", "FOK (Fill Or Kill)", "IOC (Immediate Or Cancel)"; when no effective mechanism is selected, the limit order defaults to "always valid".

Trigger order: The user can set the trigger price and its order price and quantity in advance. When the markets latest transaction price reaches the trigger price, the system will place an order based on the order price and quantity set in advance (ie, limit order).

BBO(Best Bid Offer) order:If the user selects BBO to place an order, the user only enters the order quantity, and cannot enter the order price. The system will read the current latest opponents price at the moment of receiving this order (if the user buys, the opponents price is the 1st price of the selling order; if it is selling, the opponents price is the 1st price of buying.), place a limit order for this price.

The Optimal Top N BBO Price Order:By The Optimal Top N BBO Price Order function, it means that users can place orders based on BBO price, which users can place order faster and get it fulfilled immediately only by selecting desired price level among “top 5 optimal BBO price”, “top 10 optimal BBO price” or “top 20 optimal BBO price” and enter contract quantity. No need to take the trouble judging and entering order price. The Optimal Top N BBO Price Order function is available for both opening and closing position in both limit order and trigger order, enabling faster transaction and helping user seize potential big market move.

Flash close:Flash Close is a function that would help users to place orders with top 30 optimal prices based on the BBO price orders. In other words, users could close positions with top 30 optimal BBO prices as fast as possible. However, if there are positions left not closing, the unfilled parts will convert to Limit Order automatically. The close prices of Flash Close are predictable, avoiding the losses caused by unfilled orders when market moves violently.

 

Leverage

Perpetual swap supports 1x, 2x, 3x and higher leverage respectively, and the highest leverage supports 100x.

For example, the leverage of BTC swap is 10 times. Users only need to have 1 BTC as a margin to open long/short positions with a maximum value of 10 BTC, which will bring more profits.

The user needs to select a leverage before opening a position. After opening a position, the user can switch the current leverage of the swap when there is no pending order.

For example:
  • Tom’s account equity was 1 BTC, and he held 100 conts swaps (100 USD/contract) of a long position with leverage 5x and open price 10,000 USD. When the latest price reaches 12,000 USD, the profit and margin are as follows:
Profits: 0.1666 BTC; PnL ratio is 83.33%;
Position margin: 0.1666 BTC;
Margin ratio: 697.50%.
  • Assuming Tom adjusted to 3X leverage when the latest price is 12,000 USD, the position margin, PnL ratio and margin ratio will change accordingly without the actual profits being unaffected. The data after the adjustment are as follows:
Profits: 0.1666 BTC; PnL ratio: 50.00%;
Position margin = (100 * 100) / 12,000 / 3 = 0.2777 BTC;
Margin ratio = (1.1666 / 0.2777) * 100% - 1.5% = 418.59%;
  • Hence it can be seen that the position data such as position margin, margin ratio and PnL ratio will be affected by switching leverages when holding positions, but the actual profits will not.
NOTE:

 1. Only the leverage of futures in trading status can be switched when holding positions.

2. Users with positions held can only switch leverage when they have no open limit orders and trigger orders.

3. Only the leverages available for a user can be switched to;

4. If after leverage switching the margin available is less than 0, the switching will not be successful.

5. If after leverage switching the margin ratio is less than or equal to 0, the switching will not be successful.

6. Leverage switching may fail due to problems like non-trading status, insufficient margin, network problems, or system problems.

 

Positon

Users will get position after opening positions,Positions in the same direction of the same types perpetual swaps are merged. In one perpetual swaps account, there can only be a maximum of 2 positions, long positions perpetual swaps, and short positions perpetual swaps.
  • Perpetual swaps of a single type will be combined. If the user opens 1 BTC perpetual swaps first, and then opens 2 BTC perpetual swaps, then 3 BTC perpetual will be displayed at the position, they will not be separated.
  • When closing a position, the cost is calculated using the moving average method. That is, closing a position does not distinguish which position is the closed position, but calculates the income based on the average position price as the cost price.
 

Limitation of positions and orders

Huobi Futures limits users’ gross positions and quantities of orders, to prevent market manipulation.
  • As a example for BTC and ETH:

Swaps

Individual Users position limit

(Unit: cont)

Individual order size limit

(Unit: cont)

Long position

Short position

Open position

Close position

BTC

300000

300000

45000

90000

ETH

1000000

1000000

150000

300000


【The above data and indicator contents may be adjusted in real time according to market conditions, and the adjustments will be made without further notice.】

If the amount of positions or orders held by an account is too large and there is a risk of market manipulation, then Huobi Futures has the right to require the user, including but not limit to: adopt to cancel orders or close positions, etc.Riskmanagement measures of Huobi Futures are including but not limit to: gross positions limit, orders limit, cancel orders, and liquidation, etc.

Note:
  • Perpetual swaps of a single type will be combined. If the user opens 1 BTC perpetual swaps first, and then opens 2 BTC perpetual swaps, then 3 BTC perpetual will be displayed at the position, they will not be separated.
  • When closing a position, the cost is calculated using the moving average method. That is, closing a position does not distinguish which position is the closed position, but calculates the income based on the average position price as the cost price.
Thank you for rating.
Source: Huobi Blog - huobitrading.com | Huobi Futures - Coin-Margined Swaps guides - https://huobitrading.com/huobi-futures-coin-margined-swaps-guides-051722
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