Leverage trading allows traders to amplify their capital, enabling larger positions with smaller initial investments. This "trade big with small" strategy can significantly increase potential returns—but it also magnifies risks. To help you navigate this powerful tool safely and effectively, we’ve created a comprehensive, step-by-step guide to leverage trading on Huobi Global.
This tutorial covers the full process: borrowing assets, executing long or short trades, and repaying borrowed funds with interest. Whether you're new to margin trading or refining your strategy, this guide ensures clarity, safety, and precision.
Understanding the Basics of Leverage Trading
Before diving into steps, let’s clarify what leverage trading entails:
- Borrowing assets (crypto or stablecoins) from the platform using your existing funds as collateral.
- Using those borrowed funds to open larger positions than your capital would normally allow.
- Profiting from price movements by either going long (buying low, selling high) or going short (selling high, buying low).
- Finally, repaying the borrowed amount plus interest to close the position.
All actions occur within Huobi’s isolated margin accounts—each trading pair operates independently, meaning risks and balances do not transfer across pairs.
👉 Learn how to maximize your trading potential with advanced tools and secure platforms.
Step 1: Borrowing Assets for Leverage
To begin leveraging your trades, follow these steps:
1. Log In and Access Leverage Trading
- Visit Huobi Global and log into your account.
- Click 【Leverage Trading】 in the top navigation bar to enter the leverage interface.
2. Choose a Trading Pair
- On the left panel, select a supported trading pair such as XRP/USDT.
- Each pair has its own isolated margin account—funds and risks are not shared between pairs.
Note: If one leveraged position nears liquidation, funds in other pairs won’t automatically cover it. You must manually manage each account.
3. Transfer Initial Capital
- In the trading panel, click 【Transfer】 to move funds from your spot wallet to the leverage account.
- You can transfer either asset in the pair (e.g., XRP or USDT for XRP/USDT).
4. Initiate Borrowing
- After transferring, click 【Borrow】 in the same panel.
- A popup will show how much you can borrow based on your collateral and current market availability.
Example:
- To go long, borrow USDT to buy more XRP.
- To go short, borrow XRP to sell at a high price and buy back later at a lower price.
- Interest rates vary and are displayed in real-time—always check before confirming.
5. Monitor Borrowing Status
- Go to Assets > Leverage Account, then click 【Leverage】 next to your chosen pair.
Under Current Applications, view:
- Borrowed amount
- Available to borrow
- Interest rate and accrued interest
Important: If your collateral is too low, "Available to Borrow" may show zero. Deposit more funds if needed.
Step 2: Executing Leverage Trades (Long or Short)
Once you’ve borrowed assets, you’re ready to trade.
Going Long (Bullish Strategy)
Use this when you expect the price of an asset to rise.
Process:
With borrowed USDT, place a buy order for XRP via:
- Limit order
- Market order
- Stop-limit or take-profit/stop-loss order
- Wait for the price to increase.
- Sell XRP at a higher price using any order type.
- Repay the borrowed USDT plus interest.
- Keep the profit (price difference minus fees and interest).
✅ Pro Tip: Use stop-loss orders to limit losses if the market moves against you.
👉 Discover real-time trading features that help protect your investments during volatile markets.
Going Short (Bearish Strategy)
Use this when you anticipate a price drop.
Process:
- Borrow XRP from the platform.
- Immediately sell it at the current market price.
- Wait for the price to fall.
- Buy back XRP at a lower price.
- Return the borrowed XRP plus interest.
- Profit from the price difference.
📉 Example:
- Borrow 10,000 XRP at $0.50 → Sell for $5,000
- Buy back at $0.40 → Cost = $4,000
- Profit = $1,000 (minus interest and fees)
⚠️ Warning: Incorrect market predictions can lead to amplified losses—especially with high leverage.
Step 3: Repaying Borrowed Funds and Interest
Closing your position responsibly is crucial.
How to Repay:
- Go to Assets > Leverage Account
- Click 【Leverage】 next to the relevant trading pair
- Under Current Applications, click 【Repay】
- Enter the repayment amount and confirm
💡 If your available balance is insufficient, transfer the required asset to your leverage account first.
Interest Calculation:
- Charged every 24 hours based on borrowed amount
- Rate is a percentage of the borrowed sum
- Even partial days count as full days
🔔 Reminder: Always repay on time to avoid extra charges or forced liquidation.
Frequently Asked Questions (FAQ)
Q: What is leverage in crypto trading?
A: Leverage allows you to borrow funds to increase your trading position size beyond your available capital, amplifying both potential gains and losses.
Q: How do I start leveraged trading on Huobi?
A: Transfer funds from your spot wallet to a leveraged account, borrow assets based on your collateral, then execute long or short trades.
Q: What does “going long” mean?
A: Going long means buying an asset expecting its price to rise. For example, borrowing USDT to buy XRP cheaply and selling it later at a higher price.
Q: What does “going short” mean?
A: Going short involves borrowing an asset (like XRP), selling it at a high price, buying it back later when prices drop, and profiting from the difference.
Q: When does liquidation occur?
A: Liquidation happens when your risk rate drops to 110% or below. The system will force-close your position to repay borrowed funds.
Q: How is risk rate calculated?
A: Risk Rate = (Total Assets ÷ Borrowed Amount) × 100%. A lower ratio means higher risk of liquidation.
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By following this structured approach, you can confidently engage in leveraged trading on Huobi Global. Remember: while leverage increases profit potential, it also increases risk. Start small, use risk management tools like stop-loss orders, and never invest more than you can afford to lose.
Stay informed, trade wisely, and keep learning—your journey to smarter crypto trading starts now.