USD-Margined Contracts (USDT-Margined)
USD-margined contracts, also known as USDT-margined contracts, are linear derivative products quoted and settled in USDT (Tether), a stablecoin pegged to the US dollar's value. These forward contracts offer simplicity in calculating returns since profits/losses directly correlate with fiat currency values.
Key Features:
- Profits/losses calculated in USDT (1 USDT ≈ 1 USD)
- Intuitive for traders measuring performance in fiat terms
- Supports hundreds of trading pairs with USDT as the base currency
👉 Explore USD-margined futures with competitive leverage
To open a position, ensure your contract account holds sufficient USDT balance.
Coin-Margined Contracts (Inverse Contracts)
Coin-margined contracts are reverse contracts where cryptocurrencies like BTC or ETH serve as collateral. These contracts use the underlying crypto as the base currency for margin and profit/loss calculations.
Key Advantages:
- Enables hedging without selling crypto holdings
- Automatically converts profits into more crypto (ideal for long-term accumulation)
- Includes built-in 1x leverage for capital efficiency
Popular options include BTC/USD and ETH/USD inverse contracts. Traders must hold the respective crypto assets to participate.
Choosing Between Contract Types
When to Use Coin-Margined Contracts:
- For long-term crypto holders seeking to earn position rebates
- To hedge existing crypto portfolios without liquidation
- During bull markets to compound crypto holdings
When to Use USD-Margined Contracts:
- For traders holding primarily USDT
- To access diverse trading pairs with flexible leverage
- For straightforward fiat-equivalent profit tracking
👉 Maximize opportunities with USD-margined futures
FAQ Section
Q: Which contract type has lower risk?
A: USD-margined contracts generally offer more stability since profits/losses are in stablecoins, whereas coin-margined contracts expose traders to crypto volatility.
Q: Can I switch between contract types easily?
A: Yes, but you'll need to maintain separate margin balances (USDT for USD-margined, crypto for coin-margined).
Q: Do coin-margined contracts pay funding rates?
A: No. These contracts offer position rebates instead, benefiting long-term holders.
Key Takeaways
| Feature | USD-Margined Contracts | Coin-Margined Contracts |
|---|---|---|
| Settlement Asset | USDT | BTC/ETH |
| Leverage | Adjustable | Fixed 1x |
| Ideal For | Fiat-based trading | Crypto accumulation |
| Risk Profile | Lower volatility | Higher volatility |
Both contract types cater to different trading strategies. Assess your risk tolerance, asset holdings, and market outlook before choosing.
Disclaimer: Cryptocurrency trading involves substantial risk. This content is for informational purposes only and does not constitute financial advice.
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