Huobi Global now supports margin trading for Shiba Inu (SHIB), Solana (SOL) and Terra (LUNA)
Huobi, one of the largest crypto exchanges in the world, has announced that Shiba Inu (SHIB), Terra (LUNA) and Solana (SOL) are now available for margin trading.
It allows users to trade with the relatively conservative leverage of 3x.
Huobi Global supports cross margin and isolated margin. In cross margin mode, which was launched by the exchange last December, a position can draw more margin from the total available balance in the corresponding digital currency. In this way, it is possible to offset a losing position in order to avoid a liquidation event.
With an isolated margin, as the name suggests, there is a fixed collateral amount: a trader sets aside a certain amount of funds for an individual amount. Only Solana is supported in the aforementioned trading mode.
Huobi ventured into margin trading back in 2014 with the launch of BitVC.
It is important to note that margin traders place their orders in the spot market. Futures traders, on the other hand, operate in the derivatives market by dealing with futures contracts that can be traded with much higher leverage. Earlier this year, Huobi prohibited derivatives trading in multiple countries due to regulatory issues.
As reported by U.Today, Bybit, one of the top derivatives exchanges, added a spot market for Shiba Inu in early December.
Huobi competitors OKex and KuCoin enabled margin trading for the meme cryptocurrency in May.
Kraken, which listed post pairs with the best-performing altcoin of the year in early November, does not allow trading SHIB on the margin for now.