In the cryptocurrency market, futures trading is primarily divided into two categories: USD-margined contracts and coin-margined contracts. Bitget offers USD-margined perpetual contracts, coin-margined perpetual contracts, and coin-margined delivery contracts, each catering to different investor types. This guide provides a detailed breakdown of these contract types and their ideal use cases.
Bitget USD-Margined (Perpetual) Contracts
USD-margined perpetual contracts use stablecoins (like USDT or USDC) for pricing and settlement with no expiration date, making them ideal for flexible trading. Popular trading pairs include BTC/USDT and ETH/USDC.
Key Features:
- Contract value calculated in fiat terms
- Funding rate determines fees
- Trading quantities are straightforward
• Pros: Simplified valuation for beginners, easier capital management
• Cons: Returns settled in stablecoins may miss underlying asset appreciation
• Best For: Novices and stability-focused traders
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Bitget Coin-Margined Contracts
Coin-margined contracts use cryptocurrencies (BTC, ETH) for pricing/settlement and come in two variants:
Perpetual Contracts (e.g., BTCUSD)
- No expiration date
- Funding rate fees
Delivery Contracts (e.g., ETH0927)
- Fixed expiration dates
- Requires delivery fees
• Pros: Returns tied to asset performance, effective for hedging
• Cons: Complex quantity calculations
• Best For: Professional traders familiar with crypto volatility
Key Differences Between Contract Types
| Feature | USD-Margined Perpetual | Coin-Margined Perpetual | Coin-Margined Delivery |
|---|---|---|---|
| Pricing Unit | USDT/USDC | BTC/ETH | BTC/ETH |
| Trading Pair | BTC/USDT | BTC/USD | BTC/USD0628 |
| Contract Value | Fiat-denominated | Crypto-denominated | Crypto-denominated |
| Expiration | None | None | Fixed date |
| Fees | Funding rate | Funding rate | Delivery fee |
| Best For | Beginners | Intermediate/Pro traders | Advanced traders |
Practical Use Cases
Case 1: Short-Term Speculation (USD-Margined)
- Action: Long 1 BTC/USDT at $60,000 (10x leverage)
Outcome:
- +$1,000 profit if BTC reaches $61,000
- -$1,000 loss if BTC drops to $59,000
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Case 2: Long-Term Hedging (Coin-Margined)
- Scenario: Hedge 1 BTC spot position
- Action: Short 1 BTC/USD contract
- Result: 0.2 BTC profit offsets spot losses if BTC drops 16.67%
Case 3: Expiration Arbitrage (Delivery Contract)
- Opportunity: Buy discounted BTC/USD0627 ($59,000 vs $60,000 spot)
- Profit: 0.0169 BTC upon convergence at expiration
FAQ Section
Q1: Which contract is safest for beginners?
A1: USD-margined perpetual contracts offer the most straightforward risk management with stablecoin settlements.
Q2: When should I use coin-margined contracts?
A2: When hedging existing crypto holdings or betting on long-term asset appreciation.
Q3: How does funding rate affect perpetual contracts?
A3: It periodically adjusts contract prices to match spot markets, paid between long/short positions.
Q4: What's the main risk with delivery contracts?
A4: Mandatory settlement at expiration may force unfavorable positions during volatility.
Final Recommendations
For beginners, USD-margined contracts provide an accessible entry point with clearer risk parameters. Advanced traders should consider coin-margined options for strategic hedging or when capitalizing on specific market conditions. Always:
- Match contract type to your trading horizon
- Align with your risk tolerance
- Consider underlying asset trends