Huobi is a leading cryptocurrency exchange offering various trading options, including spot trading, futures trading, and margin trading. Each type of trading serves different purposes and suits different types of traders. In this guide, we will explain the differences and provide step-by-step instructions on how to use them effectively.

1. Spot Trading on Huobi

What is Spot Trading?
Spot trading involves buying and selling cryptocurrencies at the current market price. Once the trade is executed, assets are immediately exchanged between buyers and sellers.

How to Trade Spot on Huobi

Step 1: Log in to Your Huobi Account

Go to Huobi’s official website and log in.

Step 2: Navigate to the Spot Trading Section

• Click on “Trade” and select “Spot Trading”.
• Choose between Basic or Advanced trading interfaces.

Step 3: Select a Trading Pair

• Choose a trading pair such as BTC/USDT or ETH/USDT.
• View price charts, order books, and trading history.

Step 4: Place an Order

• Market Order – Buy/sell instantly at the best available price.
• Limit Order – Set a specific price at which to buy or sell.
• Stop-Limit Order – Execute a trade when the price reaches a specified level.

Step 5: Execute and Monitor Your Trade

• Click “Buy” or “Sell” to place your order.
• Track your order in the “Open Orders” section.

2. Futures Trading on Huobi

What is Futures Trading?
Futures trading allows traders to speculate on the price movement of cryptocurrencies without owning the actual assets. It involves leverage, which can amplify both gains and losses.

How to Trade Futures on Huobi

Step 1: Access the Futures Trading Platform

• Click “Derivatives” and select “Futures”.
• Choose between USDT-margined or Coin-margined contracts.

Step 2: Transfer Funds to the Futures Account

• Go to “Assets” > “Futures Account”.
• Transfer USDT or other cryptocurrencies from your Spot Wallet.

Step 3: Choose a Futures Contract

• Select a trading pair (e.g., BTC/USDT Perpetual).
• Decide on Leverage (up to 200x for some pairs).

Step 4: Place an Order

• Market Order – Execute instantly at the best available price.
• Limit Order – Set a specific entry price.
• Stop-Loss Order – Automatically exit a trade at a predefined loss limit.

Step 5: Monitor and Manage Your Position

• Adjust leverage and liquidation prices as needed.
• Close positions when your target profit is reached.

3. Margin Trading on Huobi

What is Margin Trading?
Margin trading allows traders to borrow funds to increase their buying power and trade with leverage. This means you can open larger positions than your actual capital.

How to Trade on Margin on Huobi

Step 1: Enable Margin Trading

• Click “Trade” > “Margin Trading”.
• Accept the margin trading terms.

Step 2: Transfer Funds to the Margin Account

• Go to “Assets” > “Margin Account”.
• Transfer collateral (e.g., USDT, BTC) from your Spot Wallet.

Step 3: Borrow Funds

• Select the cryptocurrency you want to borrow.
• Choose the amount and confirm the loan.

Step 4: Trade Using Borrowed Funds

• Select a trading pair and place an order.
• Use Stop-Loss and Take-Profit levels to manage risk.

Step 5: Repay the Loan

• Once the trade is completed, repay the borrowed funds plus interest.

Key Differences Between Spot, Futures, and Margin Trading

Final Thoughts: Which Trading Type is Right for You?

• Beginners should start with spot trading to understand market fundamentals.
• Advanced traders looking for high returns can explore futures trading but should be aware of risks.
• Moderate risk-takers who want to trade with more capital can use margin trading.

👉 Ready to trade on Huobi? Sign up now using our referral link: Join Huobi