Huobi Spot Trading5 min read

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The world of crypto exchanges might seem a little complicated with all the different types of exchanges and various types of trading. Do you know the difference between futures trading, margin trading, or spot trading? if the answer is no so keep reading this article and change this no to yes. we have explained different trading orders that huobi and some other popular exchanges provide.

let’s dive into these information;

What is spot trading?

Spot trading involves directly purchasing or selling financial instruments and assets such as cryptocurrencies. Delivery of the asset is often immediate. Spot trading occurs in spot markets, that are exchange-based or otc -that is directly between traders. When trading on spot markets, you can only use assets you own there will be no leverage or margin.

Spot traders try to make profits in the market by purchasing assets and hoping their value of them will increase. They can sell their assets later on the spot market for a profit when the price grows.

Spot prices update in the real-time market and change as orders match.

What is the difference between spot markets and futures markets?

As we mentioned before, the spot markets make instant trades with immediate delivery. On the other side, the futures market has contracts paid for at a future date. A buyer and seller agree to trade a certain amount of goods for a specific price in the future.

What is the difference between spot trading and margin trading?

Margin trading is not the same as spot trading. As we mentioned before, spot trading needs you to fully purchase the asset immediately and take delivery. Contra-wise, margin trading lets you enter into larger positions.

 

Note: The structure of the Huobi and Binance exchange is similar in many features. For this reason, as an entrepreneur, you can choose any of them, whether Binance Clone Script or Huobi Clone script, according to your interests and outstanding features of the exchange.

Also, we have another suggestion regarding launching your own cryptocurrency exchange. Coinbase Clone Script, with features 100% similar to Coinbase Exchange and almost the same Huobi functions to earn more revenue without investing more, can be an exciting offer for you.

 

Huobi spot trading

Huobi Exchange

Huobi is a great exchange for the people who are not residents of the US and who want to have access to a large selection of crypto with low fees. This exchange was founded in 2013 In China. It offers margin and futures trading, as well as its ability to stake, hold, or deposit crypto for rewards.  But beginners may find it hard to work with multiple tools and features of this platform.

Spot trade on Huobi

Spot trading supports the following 6 order types: limit order, market order, stop-limit order, trigger order, advanced limit order, and trailing stop order.

The advanced limit order and trailing orders are only available on API.

Limit order:

Limit order means that the user sets the order size and the acceptable price for selling or the lowest price for buying.

The selling price for a limit order can be set 110% higher than the latest price;

And,

The buying price for a limit order can be set 90% lower than the latest price.

Market Order

Market order means that the user can instantly, executes buy or sell at the desired price in the current market for the fastest order-filling. In market orders, the prices will not be filled 10% higher or lower than the latest market price, over this price the market order will be canceled automatically.

Stop-limit order

Stop limit order means that the user defines the trigger price which means when the market value reaches the price you have set, the system will automatically place an order at the limit price and the order size that is predefined by the user to help the user maintain profits or reduce the losses.

Like the limit order, the selling price cannot be 110% higher than the trigger price and the buying price cannot be set 90% lower than the trigger price.

Huobi also has advanced limit order and trailing order on API:

Advanced Limit order

For Limit order, there are 3 execution policies:

Maker-only (post only): It will not be filled in the market immediately, and the part that is not executed will be canceled immediately.

Fill all or cancel (fill or kill): in case it fails to be executed completely, then it will be canceled immediately.

Fill immediately and cancel the remaining (immediate or cancel): If the IOC order, fails to be executed immediately in the market, the unfilled part will be canceled immediately.

Trailing Order

The huobi trailing order refers to the strategy of sending a pre-set order into the market in the event of a large market correction. When the contract market price meets the trigger condition and the correction ratio set by the user, this strategy will be triggered to set a limit order at the price set by the users. The main scenarios are to buy when the price hits a support level ad bounces back or to sell when the price hits a resistance level.

Triggering conditions:

Buy orders must meet the conditions: the triggering price must be equal to or higher than the minimum price.

Sell orders must meet the conditions: the validation price should be equal to or lower than the highest price.

You can also build your own crypto exchange like Huobi by using Huobi clone scripts that we provide. This clone script will enable you to make the changes that you want to the platform.

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