Huobi Global cryptocurrency derivatives
What is Huobi Global?
The Huobi team is a well-oiled machine driven mainly by Leon Li. The exchange team is committed to providing safe, professional, reliable and first-class services to its customers. As a digital asset service provider, Huobi Global derivatives trading platform is far ahead of its competitors in building a global license network.
Currently, the exchange is one of the top ten platforms in terms of trading turnover.
The platform interface has been translated into more than 10 languages, which indicates an orientation towards the international market. The main office of the company is located in Singapore, from where the project is regulated. The organization provides its customers with comfortable and favorable conditions for cooperation. Users on the platform can access various products and services for buying, trading, exchanging, storing, borrowing, earning, sharing and selling digital currencies. Many call Huobi Global a “premium cryptocurrency provider” that is available worldwide, allowing investors and traders to speculate.
- supports a large number of cryptocurrencies
- has an advanced trading platform with charts and tools
- competitive trading fees
The exchange also has its own HT Huobi Token, which allows users to get a discount on any type of commission on the platform. Moreover, customers get the right to vote for important decisions. The site features a blog that contains informative articles on the latest company news. For beginners, there is also a detailed guide that contains instructions. Huobi Global crypto derivatives in New Zealand are very popular and have a huge amount of positive feedback from users.
What are derivatives?
Now in the crypto industry, the derivatives market is relatively new and small compared to traditional markets, but this does not make it less profitable. Like stock options or commodity futures contracts, cryptocurrency derivatives provide protection against volatility and adverse price fluctuations in cryptocurrencies. Crypto derivatives are also a proxy tool that allows investors to speculate on the future prices of cryptocurrencies.
It is impossible to use new financial assets to receive profit from monetary investments without understanding their features.
Derivatives are a type of derivative, futures instrument. It is a variant of a special contract that provides for the transfer of a specific asset to the customer at an agreed price on a strictly designated date.
Derivatives have their own characteristics:
- Non-adjustable parameters of the contract. After the conclusion of a fixed-term contract, even after a minute and under any newly emerging circumstances, the terms of the transaction cannot be changed. This is how an attractive feature is formed, enabling speculators and traders to earn on investments.
- Contract specification as a significant condition for deliveries. The commodity appearing in it is called the “underlying asset”.
- Derivatives have a second common name - derivative financial instruments. This moment is justified by the presence of a form of obligations, the terms of which provide for the supply of underlying assets. Therefore, their derivatives do not exist separately in a physical form, such as bonds, currencies or stocks. They should be perceived as an add-on for underlying assets. This explains the linking of the cost to the prices of the underlying instruments.
- Thanks to the purchase of a derivative, the trader fixes the price of the desired asset for a certain period. This property allows you to use derivative instruments to hedge risks associated with a possible change in quotes for a particular asset.
- The main criterion that makes a derivative out of a financial instrument is always the constant value of the contract value. The transaction must be implemented by the supplier, regardless of market conditions and financial conditions.
- The forward market is used for investing in derivatives. This is determined by the delivery date, which always turns out to be delayed by a certain period.
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How to trade Huobi Global derivatives in New Zealand?
An important point is the fact that Huobi Global crypto derivatives trading is also available in the mobile application.
You can also work with the market on the Huobi exchange through a convenient terminal. To open it, you need to select the "Trading" menu section. The terminal window is visually divided into several sectors:
- Main Markets. They are on the left.
- Order books, which display orders for the purchase and sale of digital money. Located on the right side of the terminal.
- The asset price chart is located in the center of the screen. It contains the tools necessary for trading (empty lines, Japanese candlesticks, etc.) and indicators (Balance Volume, MACD, Bollinger Bands, etc.). In the same part of the window, you can change the screen type from the standard version to the full one. The last action is necessary for a deep market analysis.
- Form for buying and selling an asset. Posted below the chart. Green button - buy, red - sell.
- The digital value of the change in the price of an asset. You can see it above the chart. This part of the terminal displays the cryptocurrency rate, the percentage change in price, volumes for 24 hours, as well as the highest and lowest points of movement per day.
- Order history. Located at the very bottom of the terminal.
Huobi Global derivatives trading will be understandable even to those users who have no experience in this field.
To buy or sell an asset, the user first needs to select the market in which he will trade. Then you need to determine the appropriate currency pair. After that, you need to select the type of order. If necessary, enter the purchase price. Then the amount of the asset that the trader intends to purchase is indicated. After entering the specified data, you must click the "buy" or "sell" button. Next, the order is sent to the order book, which is located on the right side of the screen. When these actions are completed, you will have to wait until there is a buyer or seller (if a limit order was selected).
In general, the trading algorithm on the Huobi exchange can be called standard. Therefore, users with minimal experience in trading will quickly find their bearings.
Huobi cryptocurrency derivatives in New Zealand is a popular form of additional income.
How to register ?
Registration on this exchange is absolutely free and takes a minimum amount of time. In order to create an account and start trading, you need to do the following:
- Go to the main page of the site and find the "Registration" button in the upper right corner.
- By clicking on it, you will be taken to a page with a form for entering personal information. You will need to provide the following data: citizenship, email address, create and confirm a password. If there is an invitation code, you will also need to enter it.
- After that, you will need to click on the "Registration" button, which is located at the bottom of the window. Further, a letter with a special link will be sent to the specified mail, which was previously indicated in the requested window, you will need to follow it to activate your account.
On Huobi cryptocurrency derivatives trading platform, verification is available, which users can go through on their own, it allows you to significantly increase the level of account protection.
How to replenish the deposit?
To replenish the balance, you need to go to the site and point to the "Deposits" line, and then click on "Deposits and withdrawal" from the drop-down list. Next, opposite the required currency that the client wants to replenish, you need to click on "Deposit". A page will open where you will need to perform a few simple steps:
- choose where you want to deposit funds: currency account or margin account
- copy the created address of the digital wallet where the funds will be transferred
This address will need to be entered in the "Address of the recipient" column, from where the user wants to transfer funds.
Huobi Global derivatives list
Margin trading allows users to increase their investment exposure given a limited base principal amount in order to earn multiple returns.
Cross Margin: Allows traders to apply the same margin balance to different trading positions. When the risk rating of the full margin account reaches 110%, the system will liquidate the margin position. Isolated Margin: Margin individually reserved for an outstanding margin position with a fixed amount of collateral. If there are multiple margined trading positions, if one of the positions is liquidated, the margin set aside for the other margined positions will not compensate for this loss and the user will have to add margin for that position.
Interest rates on margin loans fluctuate.
You can use margin to trade assets by opening long or short positions, that is, the user bets that the price of the cryptocurrency will rise (long) or fall (short). When you hold a long position, buy a coin. With a short position, you agree to sell a certain amount of crypto.
Margin trading uses part of the assets to potentially earn a large profit. While accurately predicting future price movements can allow you to earn higher profits.
Huobi Coin margin swaps are a kind of digital currency derivatives. Users can profit from rising/falling prices of digital currencies by going long or selling short based on their own judgment. Like the margined spot market, its price is close to the price of the underlying reference index. The main mechanism for fixing spot prices is the cost of funds. Coin Margin Swaps do not have a delivery date. Users can always keep it. Coin Margin Swaps are calculated every 8 hours. After each calculation, the realized profit/loss and unrealized profit/loss are transferred to the user's account balance.
The difference between a futures contract and a perpetual swap:
- The perpetual swap will collect funding from the long/short user and return it to the short/long user according to the positive/negative funding rate.
- Perpetual swap has no trading time limit and can open and close positions at any time, futures contract can close a position, save can not open a position until 10 minutes delivery.
- Because there is no delivery date cap, a perpetual swap can avoid re-opening due to delivery, avoid misleading market conditions, and avoid funding caused by re-opening of positions.
- Perpetual is usually settled 3 times a day with a period of 8 hours, futures will be settled every day at 16:00 (GMT+8), the cycle is 24 hours, and every Friday, weekly futures will be delivered at 16:00 (GMT+8).
Huobi futures accepts spread delivery. When futures expire, all open positions will be closed at the arithmetic average price of the last hour based on the index, not physical delivery. Each future represents a certain amount of digital currency. The face value of a BTC future is $100, and the minimum price change in the order book is aggregated to $0 ,01.Futures are priced in USD, with the respective digital currency as a margin on open positions, and P/L is also calculated in the respective digital currency.
Huobi Futures offers weekly, bi-weekly, quarterly, and bi-quarterly futures.
- Weekly futures will be delivered next Friday.
- Biweekly futures will be delivered accordingly next Friday.
- Quarterly futures will be delivered on the last Friday of the next quarter.
- Two-quarter futures will be released on the last Friday of the next quarter.
The delivery date of each future does not have to be identical to each other and is based on Singapore time (GMT+8).
Major digital currency exchanges such as Huobi Global crypto derivatives trading platform serving millions of customers worldwide are attractive targets for hackers, but Huobi has several banking security measures such as wallet cold storage, SMS and email notifications with 2FA account to provide a reliable and secure trading environment. The user interface on Huobi is well designed, responsive on all devices, and visually appealing. Huobi cryptocurrency exchange is one of the leaders in the digital currency trading segment. such as :
- Availability of loyalty programs.
- Platform developers are constantly testing new technologies and adding modern trading tools.
- Margin trading available.
- Availability of mobile applications with full functionality.
- A wide range of assets is available to the trader. There are new crypto coins with good growth prospects.
- You can start trading without verification.
Good luck in Huobi cryptocurrency derivatives trading!