You might already be aware of the benefits of margin trading, and are now curious about the practical steps to taking and repaying a loan. This lesson will demonstrate precisely that. You will know how to take margin loans and repay them using the Huobi Global margin trading platform.
You can also read the following lessons for more beginner margin trading knowledge:
How to take a margin loan
1. Go to the Huobi Global main page, mouse over ‘Spot Trading’ and select ‘Margin’.
2. Choose either cross margin or isolated margin contracts and the trading pair you want. In this example, we will use cross margin and BTC/USDT.
3. Ensure that ‘Normal Mode’ is selected. If you haven’t transferred tokens to your cross margin or isolated margin account, click ‘Transfer’.
4. Choose the correct token and specify the amount you want to transfer, then click ‘confirm’.
5. You will see the token transfer confirmation banner. Now click ‘Borrow’. You can also access the same borrowing function using the ‘Loan’ button on the trading interface.
6. Here, you will see critical metrics related to your margin loan. ‘Borrowed’ indicates the loan you already have, while ‘Maximum’ indicates the maximum loan the system allows you to take, and ‘Daily Rate’ is the percentage of the fees you must pay for the loan (calculated every hour).
To borrow, enter the amount in the ‘Margin Amount’ field and click ‘Loan USDT’ (used in this example)’ to confirm the loan.
How to repay a margin loan
1. We have demonstrated how to take a loan (in this case, a loan of 100 USDT). You can see the new amount available for trading under the ‘available’ section — in this example, it has grown from 103 USDT to 203 USDT.
2. You can repay the loan partially or in full by clicking ‘Repay’.
3. Here, you will see critical metrics related to the repayment of your margin loan. ‘Interest’ indicates the amount you must pay for the borrowed tokens, and ‘Borrowed’ indicates the total amount you have borrowed. Finally, ‘Unpaid’ refers to the borrowed amount in addition to the interest you must pay.
To pay the loan in full, click ‘All’, then ‘Repay USDT’ to finalize the repayment.
It’s essential to always remember to use risk management strategies and protection tools, such as stop-limit orders, to minimize your risks and losses when the market doesn’t go your way.