Trading options contracts has become an increasingly popular way for cryptocurrency investors to hedge risk, speculate on price movements, and generate premium income. This comprehensive guide walks you through the full process of trading options contracts on the Huobi platform via the web interface, covering everything from account setup to execution and settlement.
Whether you're a beginner or an experienced trader, understanding how options work, the required assets, and the correct trading steps is essential for success. We'll break down each stage clearly and provide actionable insights to help you navigate the platform with confidence.
Getting Started: Account Setup and Access
To begin trading options contracts, first log in to your Huobi account at https://www.huobi.bi/zh-cn/. Navigate to the top menu bar and click on "Options Contract" to access the trading interface.
👉 Discover how to start trading options with a secure, high-performance platform.
If you don’t have an account yet, you’ll need to register and complete identity verification. Once logged in, proceed to enable options trading:
- Click "Enable Options Trading".
- Complete your identity verification if not already done.
- Review and agree to the user service agreement.
- Submit your application.
After approval, your options trading feature will be activated, and you can begin funding your account.
Understanding Options Contracts: Core Concepts
Before placing trades, it's important to understand the basics:
- Call Option: Gives the buyer the right (but not the obligation) to buy the underlying asset at a set price before expiration.
- Put Option: Grants the right to sell the underlying asset at a predetermined price.
- Buyer (Long Position): Pays a premium (rights fee) for this right.
- Seller (Short Position): Receives the premium but must fulfill the obligation if the buyer exercises.
Each contract is tied to a specific underlying asset, such as BTC or ETH, with defined strike prices, expiration dates (e.g., quarterly), and settlement terms.
Key Keywords:
- options contract
- call and put options
- rights fee (premium)
- collateral asset
- options trading guide
- web platform trading
- crypto derivatives
- BTC options
These terms are central to understanding how options function and will be used throughout this guide.
Funding Your Options Account
Before opening a position, ensure your options account is funded with the correct asset:
- For call option sellers: You must deposit the underlying cryptocurrency (e.g., BTC) as collateral.
- For put option sellers: You need to transfer USDT as margin.
- For buyers (call or put): You need USDT to pay the premium.
To transfer funds:
- Click "Fund Transfer" on the options page.
- Select the source wallet (e.g., spot account).
- Choose the amount and confirm.
If you don’t have digital assets, use the "Buy Crypto" option to purchase USDT or BTC using fiat currency.
Placing Your First Trade
Let’s walk through real examples of opening positions.
Selling a Call Option (Call Writer)
- Transfer BTC to your options account.
- Choose a contract, such as "0925 Call 11500 – Quarterly".
Use limit order or plan order mode.
- Enter your desired price and quantity.
- Click "Sell to Open Call Option".
- Upon order submission, the system will freeze the required BTC as collateral.
- Once filled, you’ll receive the premium in USDT, minus trading fees.
Selling a Put Option (Put Writer)
- Transfer USDT to your options account.
- Select a contract like "0925 Put 8500 – Quarterly".
- Enter limit order details and click "Sell to Open Put Option".
- USDT collateral will be frozen upon order placement.
- After execution, you earn the premium minus fees.
Buying a Call or Put Option
- Transfer USDT to your options account.
- Choose your target contract (e.g., BTC call or put).
- Enter order details and click "Buy to Open Call/Put Option".
- The system will freeze the required premium amount.
- Upon execution, the premium and fees are deducted from your balance.
Note: When closing a long put position, the used premium is deducted from your collateral balance—no separate freezing is needed.
👉 Learn how professional traders manage risk and optimize returns in options markets.
Managing and Closing Positions
You can exit your options position in two ways:
Manual Close Before Expiry
At any time before expiration, you can close your position by placing an offsetting trade:
- Buyers can sell to close.
- Sellers can buy to close.
- Your profit or loss is calculated based on the difference in premium received vs. paid.
Automatic Exercise at Expiry
- In-the-money (ITM) options are automatically exercised.
- At-the-money (ATM) and out-of-the-money (OTM) options expire worthless.
- Settlement occurs in the underlying asset or stablecoin depending on contract type.
For detailed calculations on P&L and account equity, refer to Huobi’s official documentation on settlement mechanics.
Frequently Asked Questions (FAQ)
Q: What is the difference between a call and a put option?
A: A call option gives the holder the right to buy an asset at a set price, while a put option allows selling it at a predetermined price. Calls are used when expecting price increases; puts when anticipating declines.
Q: Do I need collateral to buy options?
A: No. Buyers only pay the premium. Collateral is required only for sellers, who take on obligation risk.
Q: How is the premium (rights fee) determined?
A: Premiums depend on factors like time to expiry, volatility, strike price relative to market price, and demand/supply dynamics.
Q: Can I trade options without holding crypto?
A: Yes, if you’re buying calls or puts—you only need USDT. However, selling calls requires holding the underlying crypto (e.g., BTC).
Q: What happens if I hold a short option that gets exercised?
A: If assigned, you must fulfill the contract: deliver BTC for short calls or buy BTC at strike price for short puts, using your frozen collateral.
Q: Are there fees for options trading?
A: Yes. Both opening and closing positions incur transaction fees, deducted from your premium or collateral.
Risk Management and Best Practices
Options trading offers powerful strategies but comes with significant risks—especially for sellers who face unlimited loss potential in certain scenarios.
- Always assess volatility and market trends before writing options.
- Use stop-loss equivalents via hedging strategies.
- Monitor margin requirements closely to avoid liquidation.
- Start small and scale up as you gain experience.
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Final Thoughts
Huobi’s options contract platform provides a structured environment for engaging in crypto derivatives trading. By following this step-by-step guide—from account activation and funding to executing trades and managing expiry—you can confidently participate in this dynamic market.
Understanding key elements like premium payments, collateral requirements, and settlement rules ensures you make informed decisions aligned with your financial goals.
Whether you're looking to hedge existing holdings or explore new income opportunities through premium collection, mastering options trading is a valuable skill in today’s digital asset landscape.