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
1664
14
PHP Tutorial
1267
29
C# Tutorial
1239
24
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

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.

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.

Top 10 digital currency exchanges Top 10 digital currency app exchanges Top 10 digital currency exchanges Top 10 digital currency app exchanges Apr 22, 2025 pm 03:15 PM

The top ten digital currency exchanges 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.

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.

Top 10 virtual currency trading platforms with the lowest handling fee Top 10 virtual currency trading platforms with the lowest handling fee Apr 22, 2025 am 08:30 AM

Binance spot trading fee is 0.1%, and holding BNB can be reduced to 0.025%; OKX rate is 0.1%-0.2%, with a minimum of 0.02%; Gate.io rate is 0.2%, with a minimum of 0.10%; FTX rate is 0.02%-0.05%, but has filed for bankruptcy; Coinbase Pro rate is as low as 0.05%, ordinary users; Kraken rate is 0.16%-0.26%, with a minimum of 0.10%; Bitfinex rate is 0.1%-0.2%, with a minimum of 0.02%; Huobi rate is 0.2%, with a minimum of 0.02%; KuCoin rate is 0.1%, with a minimum of 0.02%; Bithumb rate is 0.15%, with a minimum of 0.02%; Huobi rate is 0.2%, with a minimum of 0.02%; KuCoin rate is 0.1%, with a minimum of 0.02%;

Top 10 Digital Currency Exchanges Ranking in 2025 Recommended safe digital currency trading platforms Top 10 Digital Currency Exchanges Ranking in 2025 Recommended safe digital currency trading platforms Apr 22, 2025 pm 01:06 PM

Ranking of the top ten digital currency exchanges in 2025: 1. OKX, suitable for professional traders and institutional users; 2. Binance, the world's largest trading volume, and local compliance needs to be confirmed; 3. Gate.io, suitable for niche token trading; 4. Kraken, an old exchange, suitable for European and American users; 5. Coinbase, suitable for novices; 6. Bybit, good derivative trading experience; 7. Bitget, outstanding order trading system; 8. KuCoin, suitable for exploring potential projects; 9. HTX, need to pay attention to brand transformation, etc.

What are the top currency trading platforms? The top 10 latest virtual currency exchanges What are the top currency trading platforms? The top 10 latest virtual currency exchanges Apr 28, 2025 pm 08:06 PM

Currently ranked among the top ten virtual currency exchanges: 1. Binance, 2. OKX, 3. Gate.io, 4. Coin library, 5. Siren, 6. Huobi Global Station, 7. Bybit, 8. Kucoin, 9. Bitcoin, 10. bit stamp.