Huobi had previously announced plans to launch USDT-margined perpetual contracts in the fourth quarter. After multiple rounds of rigorous testing, the platform has now initiated a real-asset internal beta test. This signals that the official launch of Huobi's USDT-margined perpetual contracts is imminent.
I recently had the opportunity to experience this beta firsthand. Below, I share an exclusive preview of the details and insights from this testing phase.
Compared to coin-margined contracts, USDT-margined perpetual contracts offer several advantages. These include stable margin requirements, easier profit calculation, and no depreciation of funds when shorting during a market downturn. As a result, USDT-margined contracts have gained significant popularity recently. Huobi, a leader in the derivatives market, has built a strong reputation among users for its reliable contract products. The upcoming USDT-margined perpetual contracts continue this tradition, offering a细心 and professional trading experience.
Let’s dive into the specifics of Huobi’s USDT-margined perpetual contract product.
Low Entry Barrier: A Huobi Tradition
Similar to other Huobi contract products, users must first meet certain conditions to activate USDT-margined perpetual contracts. A reminder prompt appears before the first trade, ensuring both convenience and security.
Upon entering the trading interface, users will find ten initially listed trading pairs. These include some of the most popular cryptocurrencies in the market. Surprisingly, I even spotted BNB among them! This means traders no longer need to switch platforms to trade BNB contracts. Given its high volatility, this is a great opportunity for arbitrage. The contract supports leverage of up to 75x, which is fantastic.
Another notable feature is the generally lower face value of these contracts. For example, the face value of a BTC contract is 0.001 BTC. At current prices, this translates to just 12-13 USDT per contract. In contrast, delivery contracts typically have a face value of 100 USD per contract. With support for 1-125x leverage, this lower barrier is particularly beneficial for retail traders. It allows them to open positions with minimal capital.
Unlike coin-margined contracts, USDT-margined contracts use USDT for both margin and settlement. This means that holding USDT enables traders to trade various cryptocurrencies, similar to spot trading. The asset transfer interface is streamlined, allowing users to transfer funds with a single click.
Diverse Order Strategies for Enhanced Trading
In terms of trading functionality, Huobi’s USDT-margined perpetual contracts offer a variety of order types. These include limit orders, trigger orders, lightning close, Immediate-or-Cancel (IOC), Fill-or-Kill (FOK), and optimal N-level orders. The lightning close function is especially useful during periods of rapid market movement.
Personally, I find the follow-and-take order feature particularly handy. Normally, when placing a buy order to go long, I would need to click on the desired price in the order book, manually enter the quantity, and then click "Buy to Open." This three-step process can be time-consuming.
With the follow-and-take order function, users can pre-set their preferred rules. Then, simply clicking on the desired price in the order book automatically places the order. This one-step process is incredibly efficient. Imagine a desirable price appearing in the order book—even with fast reflexes, manual traders might struggle to compete with this automated feature.
Regarding trading fees, Huobi offers competitive rates. Regular users pay a maker fee of 0.02% and a taker fee of 0.04%, which are among the best rates offered by top-tier platforms. For high-volume traders, maker fees can be as low as -0.025%, and taker fees can go down to 0.026%. Such low rates make being a high-volume trader quite appealing!
Risk management is crucial in contract trading. Besides choosing appropriate leverage, setting stop-loss and take-profit levels is essential. However, some users are unsure where to set these levels after opening a position. Huobi addresses this by allowing users to set stop-loss and take-profit orders based on percentage changes. For instance, you can set a take-profit order to close the position automatically once a 30% gain is achieved.
Overall, the trading experience with Huobi’s USDT-margined perpetual contracts is enhanced by diverse order strategies, making transactions convenient and efficient.
Security and Reliability: A 7-Year Track Record
The digital asset derivatives industry is growing rapidly, with many platforms now offering related services. However, the quality of these platforms varies widely. Some have faced security breaches, regulatory issues, or even sudden closures. For newcomers, finding a reliable platform can be challenging, and fund safety is a major concern.
In this regard, Huobi stands out. Over its seven-year history, the platform has maintained a perfect security record with zero safety incidents. To my knowledge, no other exchange in the crypto space has achieved this.
Specifically, for Huobi Contracts, I have traded on multiple platforms. On some exchanges, users have experienced negative account balances (known as "clawback"), where they ended up owing money to the exchange after liquidation. Huobi Contracts, however, has maintained a zero-clawback record across all its products. This demonstrates the platform’s robust risk management system.
During the internal beta, there was a bug bounty program encouraging users to identify issues. I tried my best to find flaws but encountered none. This suggests that the product is already stable and well-polished, likely nearing its official release.
Once launched, Huobi Contracts will offer a comprehensive suite of derivatives products. These include USDT-margined perpetual contracts, coin-margined perpetual contracts, coin-margined delivery contracts, and options. To hedge against USDT volatility, the platform also provides 1000x leveraged USDT/USD contract trading. This one-stop, full-range derivatives service caters to diverse trading needs and strategies.
To reduce migration costs for users, Huobi’s USDT-margined perpetual contracts will support VIP sharing and market maker programs. This not only provides high-quality trading services to more users but also enhances liquidity—a win-win situation.
That wraps up this exclusive insider look. For more product details, you’ll have to experience Huobi’s USDT-margined contracts yourself after the official launch. 👉 Explore advanced trading strategies
Frequently Asked Questions
What are USDT-margined perpetual contracts?
USDT-margined perpetual contracts are derivative products where margins and profits are settled in USDT. They allow traders to speculate on cryptocurrency price movements without holding the underlying asset, using stablecoins for easier calculation and reduced volatility risk.
How do I activate USDT-margined contracts on Huobi?
Before your first trade, a reminder prompt will appear. You need to meet specific conditions to activate the feature, ensuring a secure and compliant trading environment.
What leverage levels are available?
Huobi’s USDT-margined contracts support leverage from 1x to 125x, depending on the trading pair. Some popular coins like BNB even allow up to 75x leverage, providing flexibility for different risk appetites.
Are there any unique order types?
Yes, besides standard limit and market orders, Huobi offers advanced order types like trigger orders, lightning close, and follow-and-take orders. These enhance trading efficiency, especially in fast-moving markets.
How does Huobi ensure fund safety?
With a 7-year track record of zero security incidents and a robust risk management system, Huobi maintains a zero-clawback policy. This means users never owe money to the exchange beyond their initial margin.
What fees are involved?
Regular users pay a maker fee of 0.02% and a taker fee of 0.04%. High-volume traders can enjoy even lower fees, with maker rates as low as -0.025% and taker rates down to 0.026%.