Opening a futures order is a smart move when you have a good idea of a token’s future price movement and want to participate in it. Unlike accurately predicting a token’s future price movement, starting a futures trade is not a complex task.
Huobi Futures supports three types of orders — limit orders, trigger orders and trailing stop orders. This lesson will give you step-by-step instructions on opening these different orders.
You may want to learn more about futures trading with the following beginner lessons:
Opening a futures order
1. Choose the kind of contract you want to use from the Huobi Futures main page. You can choose from [USDⓈ-M Contracts], [Coin-M Futures] and [Coin-M Swaps].
2. Select a trading pair by mousing over the downward-pointing arrow and clicking on the pair of your choice.
Do note that this lesson uses a BTC/USDT swap pair in its examples, and that only the ‘buy’ side is used to demonstrate the opening of futures orders. To open a sell order, you can use the information in these examples on the right side of the order placement panel. You can also close (‘close short’ or ‘close long’) an order using the same steps.
Opening a limit order
1. Click [Limit] on the Huobi Futures trading interface.
Limit orders aren’t instant orders; instead, the exchange places them in an order book, and once the price reaches the right level, the order is triggered.
2. You can specify how you want your limit order to be executed by choosing either a post-only order, an immediate-or-cancel (IOC) order or a fill-or-kill (FOK) order.
3. Choose the price at which the order will be triggered by clicking on ‘Price’ and entering the correct value. Click on the downward-pointing arrow to select BBO, Optimal 5, Optimal 10 or Optimal 20.
You also need to choose the amount you want to set for the trade by clicking ‘Amount’ and entering the correct value (click ‘Cont’ if you want to change the display to BTC or USDT). Alternatively, use the green slider to select an allocation of 25%, 50%, 75% or 100% of your assets.
Do note that the leverage is often set automatically to 5 (you can change it by clicking on ‘5x’ and following these steps). The higher the leverage multiplier, the higher the risk of forced liquidation.
4. Set a stop-limit if needed by clicking the [Stop-Limit] button, filling in the information, and clicking [Confirm].
5. When you have entered all the order details and made sure you want to proceed with the trade, click [Open Long (Buy)].
Opening a trigger order
1. Click [Trigger] on the Huobi Futures trading interface.
With a trigger order, your order price is automatically placed once the market price matches the trigger price.
2. Set a trigger price at which the order will potentially be placed.
3. Enter the price manually or choose Optimal 5, Optimal 10 or Optimal 20 to place your order at the best possible price that the next 5, 10 or 20 open trades in the order book will allow.
4. You also need to choose the amount you want to set for the trade by clicking ‘Amount’ and entering the correct value (click ‘Cont’ if you want to change the display to BTC or USDT). Alternatively, use the green slider to select an allocation of 25%, 50%, 75% or 100% of your assets.
Do note that the leverage is often set automatically to 5 (you can change it by clicking on ‘5x’ and following these steps). The higher the leverage multiplier, the higher the risk of forced liquidation.
5. When you have entered all the order details and made sure you want to proceed with the trade, click [Open Long (Buy)].
Opening a trailing stop order
1. Click [Trailing Stop] on the Huobi Futures trading interface.
Traders use trailing stop orders to maximize profits and minimize losses. Trailing stop orders keep trades open, locking in profits for as long as the market price continues moving in the trader’s favor.
2. Enter an activation price in the relevant field (see the image below). The activation price is the price that triggers a trailing stop order. When placing a buy trailing stop order, the activation price must be lower than the current market price. When you place a sell trailing stop order, the activation price must be higher than the current market price.
3. Enter the callback rate (%) — the percentage change from the last highest or lowest price at which the order will close out.
4. Select Formula Price, Optimal 5, Optimal 10 or Optimal 20 to determine how the trade will be placed once the activation price is reached.
5. You also need to choose the amount you want to set for the trade by clicking ‘Amount’ and entering the correct value (click ‘Cont’ if you want to change the display to BTC or USDT). Alternatively, use the green slider to select an allocation of 25%, 50%, 75% or 100% of your assets.
Do note that the leverage is often set automatically to 5 (you can change it by clicking on ‘5x’ and following these steps). The higher the leverage multiplier, the higher the risk of forced liquidation.
6. When you have entered all the order details and made sure you want to proceed with the trade, click [Open Long (Buy)].
New to Huobi? Register for a Huobi account and receive up to $300 as a ‘Welcome Bonus’ to help you start your investment journey! If you’re an existing user, check out Huobi Earn, where you can start earning interest from your idle cryptocurrencies!
