The session of AMA ( Ask Me Anything ) with Huobi futures was conducted on 22 April 2022 at 2:30 PM IST (9 AM UTC) and lasted for 1 hour.
Jeff Mei from Huobi futures has joined us for this AMA session.
Could you give us a brief introduction on Huobi USDT-margined swaps?
OK, I will introduce the product in simple words.
Similar to coin-margined swaps, USDT-margined swaps are digital asset derivatives that can be used to gain profits or hedge against risks. They have no delivery date; therefore, there is no time limit on the holding period as long as no liquidation occurs.
Put differently, a USDT-margined swap is margined in USDT, giving a linear payoff and a clear P&L. For those new to crypto trading, USDT-margined contracts are more intuitive. For example, when traders make 100 USDT in profit, they can directly see that this profit is worth approximately $100.
Besides, traders can open positions faster since USDT-margined swaps eliminate the need to buy the underlying coins, which also cuts down on trading fees.
What advantages do USDT-margined swaps have compared to coin-margined swaps?
I’d like to say that on Huobi Futures, each product has its special features so we can’t simply tell which one is better. What we do is always listen to users’ voices and keep updating the product, so that you can always find the needed products and perform different trading strategies on Huobi.
Jeff Huobi, [22–04–2022 02:09]
Now with USDT-margined swaps, Coin-margined swaps, coin-margined futures, and options, Huobi Futures has been a one-stop derivatives platform for you. USDT-margined swaps have the advantages of convenient operation and clear PnL, and it is good for short since the USDT margin will not get devalued in the falling trend; while coin-margined swaps are ideal products for miners who hold coins and want to hedge the risk of falling prices.
We’re curious about why Huobi introduces USDT-margined swaps and what is its strategic position?
In the previous months, almost all cryptocurrencies experienced a big slump, and the market shorting sentiment was high. Though coin-margined swaps can be used for short, users still have to bear the loss from the falling margin price. However, using stable coin USDT — an asset that has price stability characteristics, as margin, the problem can be solved. To satisfy the needs of trades and to follow the market trend, we launched USDT-margined swaps.
Now on Huobi Futures, you can trade various swaps with only USDT, which could avoid the “best time delay” and the hassle of managing multiple tokens.
What are USDT-margined Swaps trading fees on Huobi Futures?
The normal fee rates of our USDT-margined swaps are 0.02% for makers and 0.05% for takers.
It‘s also worth mentioning that we give preferential policies aiming to lower trading fees for professional and institutional traders. The best fee rates are -0.010% for makers, and 0.027% for takers, which is the most preferential among top digital assets derivatives exchanges.
You can join and enjoy the preference by depositing assets in Huobi Futures accounts or showing your VIP level from competing platforms.
More details can be found here: https://www.huobi.com/support/en-us/detail/900004199863
How many types of USDT-Margined Swaps products have Huobi listed currently and what are they?
Users now can trade USDT-margined swaps via APP, Web and API with leverage up to 200x supported(BTC and ETH only, the rest 125x), namely BTC, ETH, BCH, BSV, EOS, XRP, LTC, TRX, LINK, DOT, FIL, UNI, YFI, YFII, and BNB swaps. To give Huobi Futures users a better trading experience, we set insurance funds specific to each trading pair to reduce the clawback risks. For example, the initial insurance funds for USDT-margined swaps vary from 100,000~500,000 USDT. You can also check the real-time insurance fund balance on our website.
More tokens are also considered to be added soon, so please stay tuned.
What are advantages of Huobi USDT-margined swaps when compared with that in other exchanges?
I’ll briefly introduce its main advantages here:
1. Rich experience: Our core team members are all from top investment banks, and we successfully launched coin-margined swaps and options earlier this year, which turned out to have excellent market feedback.
2. Low par value: the face value of each BTC/USDT swap is 0.001 BTC, which is around 15 USDT; while for BTC/USD swaps, the face value of each contract is 100 USD.
3. Diversified functions such as switchable leverage when holding positions, following a Maker & Taker, locked margin optimization, and partial liquidation.
4. Security: Users' assets safety is our top concern. Huobi protection methods include cold and hot wallets separation, multi-signatures, and anti-DDOS protection systems.
5. User-friendly mechanism: We will never reduce the positions of profitable users and we promise no clawback will be triggered as long as the insurance fund is positive.
At the time of trading for the operator it is important to have the necessary trading tools to perform a good analysis and therefore a good movement when operating. What tools does the #Huobi offer so that the trader feels comfortable when analyzing and operating in the market?
We have many tools to help traders facilitate trading. Like for Futures trading, we offer contract data to help traders understand and analyze the market so as to make a trading adjustments. The market data include trading volume, open interest, Long/short position comparison, basis ratio, etc
Moreover, we have some different advanced order types to help traders place the orders easily according to their trading strategy.
Limit order: A limit order is a type of order to purchase or sell a contract at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or a higher one. This stipulation allows traders to better control the prices they trade.
- Post-only order: It will not be immediately traded in the market. If the order is immediately concluded with an existing order, the order will be canceled to ensure that the user is always Maker.
- IOC order: If all orders cannot be executed on the market immediately, the unsettled portion will be canceled immediately.
- FOK order: If all orders cannot be completed, all of them will be canceled immediately.
Take-profit and Stop loss order is also available to use.
Currently, NFT is gaining popularity and it seems that NFT has a bright future. Do you have any plans to include NFT?
NFT is popular right now and so far, we have included some NFT projects on Huobi Futures, such as MATIC, SAND, MANA, CHZ, ENJ, etc. All these assets are available for both Coin-margined swaps and USDT-Margined swaps. So, you can go long or short with leverages. Or you can adopt your spot-futures arbitrage trading to earn funding fees by using perpetual swaps.
We’ll list more NFT assets in the future to cater to users' needs.
Is your only support PC device? Many games don’t support mobiles, and that reduces the attraction of many players around the world. Will it be compatible with Android devices and also iOS? Will it be released first in desktop version or mobile version?
Huobi Global offers various device choices for crypto investors. So for futures trading, you can trade by using a Phone through Huobi APP( iOS, Android) , computer ( Windows &MAC), or API according to your needs. Or you can trade directly on the website futures.huobi.com
For whatever device you are using, Huobi Futures are trying our best to offer some interesting campaigns with incentives for our users. For example, the Derivatives Master contest.
The AMA recorded many great questions from the Crypto Players India community, as well as meticulous answers from our guest Jeff Mei from Huobi Futures. AMA Concluded at 3:30 pm IST.
CryptoPlayers is one of the oldest & largest crypto communities in India since early 2017. We are a group of 25000+ telegram members and growing.