Margin Trading on the Huobi App
Margin Trading allows you to borrow funds to perform leveraged trading, which means you can open a position that is larger than the balance of your account.
Given the high price volatility of digital assets, we recommend you assess your risk appetite and risk management strategies before margin trading.
Let's take BTC/USDT as an example.
1. Open a Margin Account
- Click on the ‘Trade’ icon at the bottom.
- Select "Isolated Margin" and BTC/USDT trading pair. Margin trading supports both Cross Margin and Isolated Margin.
The difference between Cross Margin and Isolated Margin: https://www.huobi.com/support/en-us/detail/360000382501
More information about C2C Margin: https://www.huobi.com/support/en-us/detail/900000993163
2. Make a Transfer to Your Margin Account
After activating your margin account, you can transfer funds from Exchange Wallet to BTC/USDT Isolated-Margin Account.
- Click on the Transfer icon.
- Select the margin trading account as the destination account. (Choose Isolated-Margin Account first, then BTC/USDT).
- Select one supported token as the principal balance for use on margin.
- Enter the amount you want to transfer, and then click “Transfer.”
3. Borrow Funds
After transferring tokens to your Margin Account, you will be able to use those tokens as collateral to borrow funds.
- Click on the top right corner “...”.
- Select “Manual Loan/Repay”.
- Click "Loan/Repay" and you will see the loan page.
- Click “Borrow” to choose what token you want to borrow.
If you want to open a long position on BTC, you can borrow USDT to purchase BTC at a low price and sell at a higher price to earn a profit. In that case, you should click “USDT for long” and enter the amount you wish to borrow, then click “Loan”.
4. Trade with Margin
Next, your margin account will be credited with the token you borrowed. You will be able to buy (long) BTC by limit, market, or stop-limit order. When your order is fulfilled, the current risk rate and liquidation price will be displayed on the trading page. In addition, you can click "Loan/Repay" on the top right corner to view detailed information about your loan.
If the price of BTC goes up as you expected, you can sell BTC to repay the borrowed USDT along with any interest. The balance for that trade will become your profits.
5. Repay Funds
- Sell BTC to repay your loan.
- Click on "Loan/Repay" and you can see the detailed information about your margin account.
- Click “Repay” to display your loan position.
- Select the token you want to repay, then click on the ‘Repay’ button on the right side.
- Enter the repayment amount, and click “Repay” after verifying that it is correct. (If the amount available is not sufficient to repay the loan and interest, you will need to transfer more of the same token to the margin account for the repayment.)
- There is a loan limit for each token. When the collateral does not meet the minimum requirement, the available funds will be displayed as 0. When this happens, please transfer enough tokens to the margin account. For more information about loan limits, please refer to: https://www.huobi.com/en-us/ladder-lending/cross-margin/
- "Available" refers to the amount of assets that can still be borrowed from the platform. Please refer to the page display for the maximum loan limit.
- Interest rate is computed by percentage (%) of the token quantity amount and updated every hour. If the token is borrowed for less than 1 hour, the interest amount computation will round it to an hour.
- The currency interest rate will be charged as a percentage of the number of tokens borrowed, and the interest is calculated and charged on an hourly basis. If it is less than one whole hour, it will be calculated as one hour.
Margin Tiered Interest Rate & HT Interest Deduction – User Guide (Web & APP) >>>
- Apart from giving traders access to higher profits, margin trading also comes with higher risks. Please be aware that your assets may be liquidated in the event of sharp fluctuations in markets.
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Huobi reserves the right in its sole discretion to amend, revise or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi makes no recommendations or guarantees in respect of any digital asset, product, or promotion on Huobi. Prices of digital assets are highly volatile and trading digital assets is risky. Please read our Risk Reminder text here.