USDT-margined cryptocurrency futures are derivative instruments where profits are calculated using USDT (Tether) as margin collateral. To fully grasp this concept, let's first explore the fundamentals of futures margin.
Understanding Futures Margin
Cryptocurrency futures are essential derivatives because they enable investors to speculate on price movements without holding the underlying assets.
Futures margin refers to the capital you must deposit with a trading platform to open a futures position—typically a small percentage of the contract's nominal value.
USDT is a stablecoin pegged to the US dollar. USDT-margined futures are linear products priced and settled in USDT, simplifying cross-crypto derivative trading.
Key Advantages:
- Streamlined Trading: Trade multiple futures contracts without holding diverse cryptocurrencies.
- Simplified PnL Calculation: Profits/losses are settled in USDT, easing price reference and profit tracking.
- Stability: USDT's dollar peg reduces volatility risks compared to crypto-collateralized margins.
Features of Bit.com’s USDT-Margined Futures
Bit.com offers a unified margin system, allowing all assets to be pooled as collateral for derivatives trading. Key features include:
Dollar-Pegged Settlement
- Contracts are priced and settled in USDT, enabling quick fiat-equivalent profit assessments (e.g., 800 USDT ≈ 800 USD).
- Universal USDT settlement works across contracts (BTC, ETH, XRP, etc.), enhancing flexibility.
Clear Pricing Rules
- Each contract specifies its "contract unit" (e.g., BTC/USDT = 1 BTC).
Cross-Margin Support
- Utilizes total account balance to prevent premature liquidation.
- Realized profits from other orders offset losses, increasing margin capacity.
- Leverage ranges: 1–50x (up to $2M orders).
USDT-Margined vs. Crypto-Margined Futures
| Feature | USDT-Margined Futures | Crypto-Margined Futures |
|---|---|---|
| Settlement Currency | USDT | Underlying asset (e.g., ETH) |
| Quote Unit | USDT | USD |
| Margin Currency | USDT | Matching asset (e.g., BTC) |
| PnL Calculation | USDT | Underlying asset |
Margin Stability Differences
- Crypto-Margined Contracts: Margin value fluctuates with the asset's price.
- USDT Contracts: Margin remains stable (pegged to USD).
PnL Formula: {Exit Price − Entry Price} × Order Size / Entry Price
Why Trade USDT-Margined Futures on Bit.com?
Bit.com is a comprehensive crypto exchange offering:
- Spot trading
- Perpetual contracts
- Futures & options
- Yield products
Backed by Matrixport (valued at $1B+), Bit.com ranks as the world’s #2 crypto options platform.
FAQs
1. Are USDT-margined futures riskier than crypto-margined ones?
No—USDT’s stability often reduces margin volatility risks during market swings.
2. Can I use other stablecoins instead of USDT for margin?
Bit.com currently supports only USDT for these contracts.
3. How does cross-margin improve trading efficiency?
It consolidates your portfolio’s equity, minimizing premature liquidation risks.
4. What’s the minimum leverage for USDT futures on Bit.com?
1x (no leverage), adjustable up to 50x.
5. Is USDT accepted globally for futures trading?
Yes, USDT is widely used across exchanges for derivatives.
6. How are fees calculated for USDT-margined trades?
Fees depend on your VIP level and trade volume—check Bit.com’s fee schedule.
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