Huobi Futures is a derivative trading platform that allows users to trade futures contracts based on cryptocurrencies. It provides an opportunity to profit from market fluctuations by going long (buying) or short (selling) on various digital assets. In this guide, we will cover the basics of Huobi Futures, how to trade, and essential risk management strategies.

1. What is Huobi Futures?

Huobi Futures offers cryptocurrency derivative products, including perpetual contracts and quarterly futures contracts. Traders can use leverage to maximize potential gains, but this also increases risk.

Key Features of Huobi Futures:

• Multiple Trading Pairs – Trade BTC, ETH, and other major cryptocurrencies.
• Perpetual & Quarterly Contracts – Choose between no-expiry perpetual contracts or time-based futures.
• Leverage Up to 125x – Amplify trading positions with high leverage options.
• Hedging Strategies – Protect investments by shorting assets during downtrends.
• Advanced Order Types – Utilize limit, stop-loss, and take-profit orders for better risk control.

2. How to Trade on Huobi Futures

Step 1: Log in and Enable Futures Trading

• Go to Huobi’s official website and log in.
• Navigate to “Futures” from the main menu.
• Complete Futures Trading Activation by agreeing to the terms.

Step 2: Deposit Funds into Your Futures Account

• Transfer USDT or other supported assets from your spot wallet to your futures wallet.
• Ensure you have enough collateral before opening positions.

Step 3: Select a Trading Pair and Contract Type

• Choose between perpetual contracts (no expiry) or quarterly contracts (expire at set intervals).
• Pick your preferred cryptocurrency pair (e.g., BTC/USDT, ETH/USDT).

Step 4: Adjust Leverage & Choose Trade Type

• Set your desired leverage (1x to 125x). Higher leverage increases potential profits but also raises liquidation risk.
• Select Long (Buy) if you predict the price will rise, or Short (Sell) if you expect a decline.

Step 5: Place an Order

• Choose an order type:
  • Limit Order – Set a specific price to enter the market.
  • Market Order – Execute immediately at the best available price.
  • Stop-Loss/Take-Profit – Automatically close positions to secure profits or minimize losses.
• Confirm the order and monitor your position in the “Open Orders” section.

Step 6: Closing a Position

• Close positions manually or set automatic take-profit/stop-loss levels.
• Check your PnL (Profit and Loss) to track performance.

3. Risk Management Strategies

Trading futures involves high risk due to leverage. Here are some key risk management strategies:

✔ Use Stop-Loss Orders – Prevent excessive losses by setting stop-loss levels.
✔ Manage Leverage Wisely – Avoid using high leverage unless you have experience.
✔ Diversify Your Portfolio – Do not invest all funds in a single trade.
✔ Monitor Market Trends – Stay updated with technical and fundamental analysis.
✔ Practice with Demo Trading – Use Huobi’s demo trading to gain experience before trading real funds.

Final Thoughts

Huobi Futures provides a powerful platform for traders to engage in leveraged crypto trading. By understanding the different contract types, order strategies, and risk management techniques, you can improve your trading experience and minimize potential losses.

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