Home web3.0 How much margin is needed for Huobi futures contracts to avoid liquidation?

How much margin is needed for Huobi futures contracts to avoid liquidation?

Jul 02, 2024 am 11:17 AM
git Huobi.com Huobi Mainstream coins

Huobi contract liquidation is a forced liquidation caused by insufficient margin. In order to avoid liquidation, the margin ratio is recommended: no less than 10% for mainstream currency contracts and no less than 20% for non-mainstream currency contracts. Margin calculation formula: margin required for liquidation = contract value / (1 - stop loss rate / opening price). A high margin ratio helps reduce the risk of liquidation. The leverage ratio of contract trading is high, and returns and risks coexist, so margins need to be managed carefully.

How much margin is needed for Huobi futures contracts to avoid liquidation?


How much margin is needed for Huobi futures contracts to avoid liquidation?

Huobi futures liquidation refers to a situation where the loss of a contract position reaches a certain level, resulting in insufficient margin and forced liquidation by the system. In order to avoid liquidation, you need to control the use of margin.

Mechanism of margin and liquidation

Huobi futures trading adopts a margin system, that is, users only need to pay part of the funds (margin) as collateral to enlarge the transaction. The amount of margin is directly related to the risk of liquidation.

Margin Ratio = Margin / Contract Value

When the contract loss is greater than the margin, a liquidation will occur. The liquidation price refers to the price when the contract loss reaches the margin amount.

Calculate the margin required for liquidation

Assume that the contract opening price is $10,000, the leverage is 10 times, and the planned stop loss price is $9,500.

Contract value = 10,000 USD * 10 times = 100,000 USD Liquidation price = 9,500 USD

Margin required for liquidation = Contract value / (1 - Stop loss rate / opening price) Margin required for liquidation = 100,000 USD / (1 - 9,500 USD / 10,000 USD) = 100,000 USD

Margin Recommendation

In order to minimize the risk of liquidation, it is recommended to use a higher margin ratio. Huobi contracts have different margin requirements for different contracts. General recommendations:

Mainstream currency contracts: the margin ratio is not less than 10%. Non-mainstream currency contracts: the margin ratio is not less than 20%. Risk reminder

The leverage multiple of contract trading is higher High, which not only magnifies the benefits but also magnifies the risks. Once a liquidation occurs, you will not only lose your margin, but may also cause additional losses. Therefore, before participating in contract transactions, you must fully understand the risks, set stop losses reasonably, and manage margins carefully.

The above is the detailed content of How much margin is needed for Huobi futures contracts to avoid liquidation?. For more information, please follow other related articles on the PHP Chinese website!

Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

Video Face Swap

Video Face Swap

Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Tools

Notepad++7.3.1

Notepad++7.3.1

Easy-to-use and free code editor

SublimeText3 Chinese version

SublimeText3 Chinese version

Chinese version, very easy to use

Zend Studio 13.0.1

Zend Studio 13.0.1

Powerful PHP integrated development environment

Dreamweaver CS6

Dreamweaver CS6

Visual web development tools

SublimeText3 Mac version

SublimeText3 Mac version

God-level code editing software (SublimeText3)

Hot Topics

Java Tutorial
1662
14
PHP Tutorial
1261
29
C# Tutorial
1234
24
Recommend several apps to buy mainstream coins in 2025 latest release Recommend several apps to buy mainstream coins in 2025 latest release Apr 21, 2025 pm 11:54 PM

APP software that can purchase mainstream coins includes: 1. Binance, the world's leading, large transaction volume and fast speed; 2. OKX, innovative products, low fees, high security; 3. Gate.io, a variety of assets and trading options, focusing on security; 4. Huobi (HTX), low fees, good user experience; 5. Coinbase, suitable for novices, high security; 6. Kraken, safe and compliant, providing a variety of services; 7. KuCoin, low fees, suitable for professional traders; 8. Gemini, emphasizes compliance, and provides custodial services; 9. Crypto.com, providing a variety of offers and services; 10. Bitstamp, an old exchange, strong liquidity,

Meme Coin Exchange Ranking Meme Coin Main Exchange Top 10 Spots Meme Coin Exchange Ranking Meme Coin Main Exchange Top 10 Spots Apr 22, 2025 am 09:57 AM

The most suitable platforms for trading Meme coins include: 1. Binance, the world's largest, with high liquidity and low handling fees; 2. OkX, an efficient trading engine, supporting a variety of Meme coins; 3. XBIT, decentralized, supporting cross-chain trading; 4. Redim (Solana DEX), low cost, combined with Serum order book; 5. PancakeSwap (BSC DEX), low transaction fees and fast speed; 6. Orca (Solana DEX), user experience optimization; 7. Coinbase, high security, suitable for beginners; 8. Huobi, well-known in Asia, rich trading pairs; 9. DEXRabbit, intelligent

The top ten free platform recommendations for real-time data on currency circle markets are released The top ten free platform recommendations for real-time data on currency circle markets are released Apr 22, 2025 am 08:12 AM

Cryptocurrency data platforms suitable for beginners include CoinMarketCap and non-small trumpet. 1. CoinMarketCap provides global real-time price, market value, and trading volume rankings for novice and basic analysis needs. 2. The non-small quotation provides a Chinese-friendly interface, suitable for Chinese users to quickly screen low-risk potential projects.

Top 10 Digital Virtual Currency Apps Rankings: Top 10 Digital Currency Exchanges in Currency Circle Trading Top 10 Digital Virtual Currency Apps Rankings: Top 10 Digital Currency Exchanges in Currency Circle Trading Apr 22, 2025 pm 03:00 PM

The top ten digital virtual currency apps are: 1. OKX, 2. Binance, 3. gate.io, 4. Coinbase, 5. Kraken, 6. Huobi, 7. KuCoin, 8. Bitfinex, 9. Bitstamp, 10. Poloniex. These exchanges are selected based on factors such as transaction volume, user experience and security, and all provide a variety of digital currency trading services and an efficient trading experience.

Quantum Chain Exchange Ranking Top 10 Recommended (Updated in 2025) Quantum Chain Exchange Ranking Top 10 Recommended (Updated in 2025) Apr 21, 2025 pm 11:48 PM

Quantum chains can be traded on the following exchanges: 1. Binance: One of the world's largest exchanges, with large trading volume, rich currency and high security. 2. Sesame Open Door (Gate.io): a large exchange, providing a variety of digital currency transactions, with good trading depth. 3. Ouyi (OKX): operated by OK Group, with strong comprehensive strength, large transaction volume, and complete safety measures. 4. Bitget: Fast development, provides quantum chain transactions, and improves security. 5. Bithumb: operated in Japan, supports transactions of multiple mainstream virtual currencies, and is safe and reliable. 6. Matcha Exchange: a well-known exchange with a friendly interface and supports quantum chain trading. 7. Huobi: a large exchange that provides quantum chain trading,

Git: The Core of Version Control, GitHub: Social Coding Git: The Core of Version Control, GitHub: Social Coding Apr 23, 2025 am 12:04 AM

Git and GitHub are key tools for modern software development. Git provides version control capabilities to manage code through repositories, branches, commits and merges. GitHub provides code hosting and collaboration features such as Issues and PullRequests. Using Git and GitHub can significantly improve development efficiency and team collaboration capabilities.

What are the quantum chain trading platforms? What are the quantum chain trading platforms? Apr 21, 2025 pm 11:45 PM

Platforms that support Qtum trading are: 1. Binance, 2. OKX Ouyi, 3. Huobi, 4. Gate.io Sesame Open Door, 5. Siren, 6. Coinku, 7. Bit stamp, 8. Coinku, 9. Bybit, 10. Gemini, these platforms have their own characteristics and advantages.

Top 10 reliable digital virtual currency trading platform apps Ranking of top 10 easy-to-use virtual currency exchange platforms Top 10 reliable digital virtual currency trading platform apps Ranking of top 10 easy-to-use virtual currency exchange platforms Apr 22, 2025 pm 12:51 PM

The top ten most reliable virtual currency trading platform apps are: 1. Binance, 2. OKX, 3. Gate.io, 4. Coinbase, 5. Kraken, 6. Huobi Global, 7. KuCoin, 8. Bitfinex, 9. Bybit, 10. Bitstamp. These platforms all provide efficient trading systems, multiple transaction types and powerful security measures, suitable for users at different levels to trade.