Hello everyone, hope you are all doing great. I welcome you all to my second homework task part- 4 provided by @besticofinder. Thanks to @steemitblog for this awesome initiative.

For instance, you think Bitcoin is going up in the next few days and you have a lot of faith in it. You can buy Bitcoin with USDT and wait for the price to go up and when it reaches your target you sell Bitcoin and exchange it back into USDT. This is a regular trade. With margin trading, you increase the amount you trade with by leveraging it. You can make the trade to exchange USDT to buy Bitcoin because you believe the price goes up, you go long (when you think the price will go down you go short). Now you can choose to add leverage, the maximum you can add is 3x, so for instance, if you add 1x leverage, you take out a loan to ensure that you can pay my leverage if the trade goes the wrong way. The loan insures the currency exchange can liquidate a trade account. If the trade made a 100% profit before it was closed, with the 1x leverage it means you get another 100% profit. If the trade has a 100% loss, it means the loss is also doubled.

To start margin trading on Huobi Pro you will need to transfer funds from your exchange account to your margin account. To do this, go to the margin trading tab after you logged in to your Huobi account. Then go to the trading pair you want to trade. Go to “transfer in” and add the number of tokens you want to margin trade. The screen will look like this.

To transfer the margin funds out and back into your exchange account just click on the exchange button and you can transfer from your Margin Account to your exchange account.

Now when you go to your margin account balance (click on the tab loan in your account, below the tab balances, top right on the website, and accept the terms) you will see your margin account balances.

When you click on the loan tab at the end of the line ELA/BTC in the picture above, you can apply for a loan for your margin account.

• Loans must be paid back in the currency they are loaned in. The repay amount = loaned amount + interest. You can replay the loan in full at once or you can repay the loan in multiple installments. When you pay back in installments you’ll pay back the interest first and then the base loan.

• The daily loan rate is 0.1% for USDT. When you take out a loan of other currencies the rate is 0.02%. You start to pay interest from the moment you take out the loan. 1 unit is considered a time span of 24-hours. You can short it or go long.

• Caution when margin trading, things can go south very fast because of the leveraged trades, only trade what you are willing to lose! Never put in more money than you can afford to lose.

There are three ways you can reduce your transaction fees.

A. Suppose, You make a trade that equals the amounts of $ 5,000 USD.

• The regular trading fee on Huobi is $ 5,000 USD x 0.2 % = $ 10.
• Using the VIP30 package the fee reduces by 30% which makes the fee $ 7 ($ 10 – 30%)*
• Paying with the Points from the Points Card you bought OTC (Over The Counter) for 75% off you only pay
  $ 7 – $ 5.25 (75%) = $ 1.75
• Collecting the rebates from the Super Rebate program on this trade reduces the trading fee by another $ 0.53 (30%)
• The total trading fee for this trade of $ 5,000 USD is $ 10 - $ 3 - $ 5.25 – $ 0.53 = $ 1.22 which is 0.024% instead of 0.2 %.

B. Suppose, You make a trade that equals the amounts of $ 5,000 USD.

• The regular trading fee on Huobi is $ 5,000 USD x 0.2 % = $ 10.
• Paying with the Points from the Point Card you bought OTC (Over The Counter) for 75% off you only pay $ 10 – $ 7.50 (75%) = $ 2.50
• Collecting the rebates from the Super Rebate program on this trade reduces the trading fee by another $ 0.75 (30%)
• The total trading fee for this trade of $ 5,000 USD is $ 10 - $ 7.50 – $ 0.75 = $ 1.75 which is 0.035 % instead of 0.2 %.

C. This is only profitable if you are a high-frequency trader.

• Sign up for a new Huobi account using your own referral link from the Super Rebates Program. If you didn’t have a Huobi account yet, register for an account and then register a new one with the first referral link. This new account you will use for main trading, the old one you can use to collect your Rebates from your trading account
• Become a Huobi VIP and get an additional discount on your trading fees*
• Buy a Points CardOTC for a large discount. You can get up to 75% off. Regular price per point is $ 1.
• Make your trades on Huobi Pro

Resources:
☞source 1
☞source 2
☞source 3