BTCEX offers USDT-Margined Futures products, and here are the key characteristics:
|
|
USDT-Margined |
|
Collateral |
USDT |
|
Margin Type |
Isolate/Cross |
|
Cross collateral |
Yes |
BTCEX USDT-Margined contracts offer the following characteristics:
- Settlement in USD-pegged assets: contracts are denominated and settled in USDT.
- Expiration: Perpetual and Quarterly.
- Clear pricing rules: each futures contract specifies the base asset's quantity delivered for a single contract, also known as "Contract Unit." For instance, BTC/USDT, ETH/USDT, and BCH/USDT futures contracts represent only one unit of its respective base asset, similar to spot markets.
Advantages of USDT-Margined Contracts
USDT-Margined contracts are linear futures quoted and settled in USDT. One of the key benefits of USDT settlement is that you can easily calculate your returns in fiat. This makes USDT-Margined contracts more intuitive. For example, when you make 500 USDT in profit, you can easily estimate that the profit is worth approximately $500 USDT- since the value of 1 USDT is pegged closely to 1 USD.
Additionally, a universal settlement currency, such as USDT, provides more flexibility. You can use the same settlement currency across various futures contracts (i.e., BTC, ETH, XRP, etc.). This eliminates the need to buy the underlying coins to fund future positions. As such, you will not incur excessive fees as there is no additional conversion required when trading with USDT.
In periods of high volatility, USDT-Margined contracts can help reduce the risk of large price swings. Thus, you do not need to worry about hedging their underlying collateral exposure.