In today's digital currency market, Huobi.com contract trading has attracted much attention. For many investors, it is crucial to understand the investment threshold of contract trading. So, how much money does Huobi.com contract trading need to start? Let's explore this topic in depth.

First of all, to understand the investment threshold of Huobi.com contract trading, we need to understand what contract trading is. Contract trading is a way of trading through leverage, and investors can use leverage to amplify funds to obtain higher returns. On Huobi.com, the investment threshold of contract trading usually depends on the trading variety and leverage multiple.

Huobi.com provides contract trading for a variety of digital currencies, such as Bitcoin, Ethereum, etc. For different digital currencies, the investment threshold will also be different. Generally speaking, investors can choose the appropriate trading variety according to their financial strength and risk tolerance.

For example, suppose Xiao Ming wants to trade Bitcoin contracts on Huobi.com. He chose the Bitcoin/USDT trading product and decided to use 5x leverage for trading. According to Huobi.com's regulations, the minimum trading unit for Bitcoin contract trading is 0.01 Bitcoin, and with 5x leverage, Xiao Ming only needs to prepare the corresponding margin in his account to trade.

In addition, Huobi.com also provides a simulated trading function, where investors can conduct actual combat exercises in simulated trading to improve trading skills and risk awareness. This is especially important for novice investors, as it can help them better understand the mechanism of contract trading and reduce market entry risks.

In general, there is no fixed number for the investment threshold of Huobi.com contract trading, but it depends on factors such as trading products and leverage multiples. When choosing contract trading, investors should make reasonable decisions based on their own situation and market conditions, invest rationally, and avoid risks.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Before answering this question, let me first tell you what contract trading is. Contract trading refers to the agreement between the buyer and the seller to receive a certain amount of a certain asset at a specified price at a certain time in the future. In simple terms, it is to agree to trade a certain amount of a certain commodity at a certain time and place in the future. After understanding the meaning of contract trading, let's get back to the point. How much money is needed for online contract trading? Now I will tell you how much money is needed for Huobi contract trading at least?

 How much money is needed for Huobi contract trading at least?

In the virtual contract market, users only need to pay a small amount of funds as a financial guarantee for fulfilling the contract according to the contract price at a certain ratio, and then they can participate in the purchase and sale of contracts. This kind of funds is the virtual contract margin. For example, if you take a BTC
10 times bullish
, it is equivalent to you having 10BTC, and if it rises by 10 points, you will have 2 BTC (actually 1.909, the specific algorithm will be discussed later). But if it falls, you will lose this BTC first, and this BTC is the margin.

 The role of digital currency contract trading:

1. Hedging and hedging risks

At present, contracts can mainly play two roles for users, small-scale risk-taking and risk hedging. Small-scale risk-taking is easy to understand, that is, to magnify profits through leverage, and the people who use contracts for risk hedging are mostly miners. The principle of risk hedging is as follows:

If the price of BTC rises, then the futures will lose money, the number of BTC will decrease, and the total value will remain basically unchanged.

If the price of BTC falls, then the futures will make money, the number of BTC will increase, and the total value will remain unchanged.

Buy and sell futures contracts with the same variety and quantity as the spot in the futures market, but in the opposite direction. Use the profit of one market to make up for the loss of another market to avoid price risks. The price of futures is jointly constrained by the spot price and economic factors. There is a delivery mechanism. In the long run, the futures and spot prices are consistent.

In addition, with contracts, when the price rises or falls unilaterally, there will be an opposite force to push the price back to a relatively ideal state, control the spot market price, and make its short-term irrational price return to rationality.

2. Increase the liquidity of assets, which is conducive to the entry of more institutional investors.

Since many institutional investors cannot invest in Bitcoin directly, the introduction of derivatives by major exchanges has given these investors a channel to enter the Bitcoin market.

According to data from research firm Autonomous
Next, in October 2017, there were 124 funds investing in Bitcoin and other digital currencies, and the digital currency assets held by the funds were worth a total of US$2.3 billion. As of now, the number of funds has exceeded 500, with assets under management of US$10-15 billion. The rapidly growing fund companies and investment institutions have further lowered the investment threshold and increased the liquidity of various virtual assets.

3. Expand trading methods and compete for the pricing power of Bitcoin.

Contract trading diversifies virtual asset trading strategies, which can be shorted or long. At the same time, the spot market and the contract market will also divert traffic to each other, increasing the size of the entire digital currency market.

Its futures trading derivatives trading volume is much higher than the trading volume of physical gold. Institutional investors who find it difficult to gain an advantage in the spot market can react to the spot market by dominating the derivatives market.

Through the above introduction, I believe everyone has understood the question of how much money is needed for contract trading on Huobi.com. In fact, if you want to do contract trading, first of all, you must have a stable mentality. After losing money, you can't be like a headless fly. You must learn to review and summarize the lessons; secondly, you can't be too greedy, you must know how to take the money and run; thirdly, you must know how to stop loss in time and don't go against the trend. Fourth, watch more and do less when the market is sideways. Find the right point to enter the market. If you want to know more about the relevant knowledge, you can pay attention to the currency circle. The editor of the currency circle will continue to update the relevant reports later!

In addition, the leverage multiple is also one of the important factors affecting the investment threshold. Huobi.com usually provides a variety of leverage multiples such as 2x, 5x, and 10x. Investors can choose the appropriate leverage multiple according to their needs and risk preferences. It should be noted that although leveraged trading can bring high returns, it is also accompanied by higher risks, and investors should operate with caution.

Finally, whether they are novice investors or senior traders, before conducting Huobi.com contract trading, they should have a full understanding of the market, formulate reasonable trading strategies, and strictly control risks. Only in this way can we develop steadily in the digital currency market and obtain stable investment returns. I hope every investor can get a satisfactory return on investment in Huobi.com contract trading!