Leverage trading allows investors to amplify their capital by borrowing funds, enabling larger investments with smaller initial capital. This guide covers the complete workflow—borrowing assets, executing trades (long/short), and repaying loans—for seamless leveraged trading on Huobi Global.
Key Components of Leverage Trading
Borrowing Assets
- Funds borrowed act as "leverage" to magnify positions.
- Interest accrues daily until repayment.
Trading Execution
- Long: Profit from price increases (buy low, sell high).
- Short: Profit from price declines (sell high, buy low).
Loan Repayment
- Timely repayment avoids excess interest charges.
Step 1: Borrowing Assets on Huobi Global
1. Access Leverage Trading Interface
- Log in to Huobi Global and select Leverage Trading from the top menu.
2. Select a Trading Pair
- Choose supported pairs (e.g.,
XRP/USDT). - Each pair operates as an isolated account; funds aren’t shared across pairs.
3. Transfer Collateral
- Deposit collateral (e.g., USDT or XRP) into the leverage account via the Transfer button.
4. Borrow Funds
- Click Borrow and specify the amount.
Note:
- Minimum/maximum borrow limits apply.
- Interest rates adjust dynamically (displayed in real-time).
5. Verify Borrowed Funds
- Check borrowed amounts and interest under Assets > Leverage Account.
Step 2: Executing Leverage Trades
Long Position (Buy Low, Sell High)
- Borrow USDT to purchase the base asset (e.g., XRP).
Place orders via:
- Limit Order: Set target buy/sell prices.
- Market Order: Instant execution at current prices.
- Sell at higher prices to repay USDT loan + interest.
Short Position (Sell High, Buy Low)
- Borrow the Base Asset (e.g., XRP) to sell.
- Repurchase XRP at lower prices to return the loan, keeping the difference as profit.
Risk Tip: Monitor market trends to avoid liquidation (triggered at 110% risk rate).
Step 3: Repaying Loans
- Navigate to Assets > Leverage Account > Leverage Management.
- Select Repay and confirm the amount.
- Ensure sufficient funds to cover principal + accrued interest.
Key Notes:
- Interest is calculated per 24-hour cycle.
- Delayed repayment increases costs.
Leverage Trading FAQs
1. What is leverage?
Using borrowed funds to amplify trading positions (e.g., 5x capital).
2. How to open a leveraged position?
Transfer collateral, borrow assets, and execute trades.
3. Long vs. Short?
- Long: Profit from rising prices.
- Short: Profit from falling prices.
4. What triggers liquidation?
Positions liquidate when risk rate ≤110%.
5. How is risk rate calculated?
Risk Rate = (Total Assets / Borrowed Amount) × 100% 👉 Maximize profits with Huobi’s leverage tools
Summary
Leverage trading multiplies gains but requires disciplined risk management. Use Huobi’s interface to borrow, trade, and repay efficiently.
👉 Start trading with low fees today
Rates and features subject to change. Refer to Huobi Global for updates.