Differences Between USDT-M Futures and Coin-M Futures

USDT-M Futures

USDT-M Futures on the platform represents a type of futures contract, which is a linear derivative product priced and settled in USDT—a stablecoin pegged to the value of the US dollar.

One of the primary advantages of USDT-M Futures is that you can easily calculate your profits by referencing fiat currency. This makes USDT-M Futures more intuitive and user-friendly. For example, when you earn 1,000 USDT in profit, you can easily estimate that your profit is worth approximately 1,000 USD—since the value of 1 USDT is tightly pegged to 1 USD.

The platform supports hundreds of Futures trading pairs, and you can select from the top left section of the Futures page. Before opening a position, ensure that you have sufficient USDT available in your Futures account to serve as margin.

Coin-M Futures

Coin-M Futures provided by the platform is a form of inverse futures contract that uses cryptocurrency as collateral, meaning the cryptocurrency serves as the quote currency. In the case of Coin-M Futures such as BTC, BTC will be used as the initial margin or to calculate profits.

The greatest advantage of Coin-M Futures is that you can improve your capital efficiency. In addition to holding a particular token, you can also trade futures contracts using that same token. Furthermore, if you wish to convert your returns into fiat currency, since the token is being used as margin, Coin-M Futures itself comes with built-in leverage. While risk increases slightly, profits also increase proportionally.

The platform currently provides Coin-M Futures for BTC and ETH. Before opening a position, please ensure you have sufficient BTC or ETH assets in your Futures account.

How to Choose

One of the most important reasons users choose Coin-M Futures is that it provides a funding rate for their positions, making it an ideal choice for traders who want to maintain long-term positions. BTC or ETH holders do not need to exchange any of their held assets for USDT to provide margin and trade on the platform's Futures. In other words, they avoid having to sell any cryptocurrency at unfavorable prices.

When the market enters a bull phase, investors tend to continue holding their cryptocurrency assets. Since Futures are settled in the same coin, any profits are directly converted into the token, which is excellent for maintaining long-term holdings and generating substantial returns as the token appreciates over time.

However, when users only hold USDT and do not possess other cryptocurrency assets, they may consider using USDT-M Futures and taking advantage of the hundreds of trading pairs provided by the platform. This allows them to generate profits through leveraged investments across diverse markets.

Summary

Both USDT-M Futures and Coin-M Futures have their distinct advantages. You can trade on the platform's Futures market according to your own specific needs and investment strategy. The choice between these two products depends on your asset holdings, risk tolerance, and long-term investment objectives.

FAQ

What are the differences between USDT-M Futures and Coin-M Futures?

USDT-M futures settle in stablecoins at expiration, while Coin-M futures settle in digital currencies. Coin-M futures are advantageous for long-term investors, especially during bull markets, as profits are denominated in the underlying asset.

What are the margin requirements and settlement methods for USDT-M Futures?

USDT-M Futures require initial margin and maintenance margin based on leverage levels. Daily unrealized P&L is settled in USDT, with positions marked-to-market in real-time.

What are the margin and settlement methods for Coin-M Futures?

Coin-M Futures use specific cryptocurrencies as margin, with USDT as the settlement currency. The platform charges 0% maker fees and 0.02% taker fees for trading.

Which has greater risk between USDT-M Futures and Coin-M Futures?

Coin-M Futures typically carries greater risk due to lower liquidity and wider spreads. USDT-M Futures is relatively more stable with higher trading volume and tighter spreads.

Should I choose USDT-M futures or COIN-M futures for trading?

Choose USDT-M for stable settlement in USDT; choose COIN-M for cryptocurrency settlement. Your decision depends on whether you prefer stablecoin or crypto-denominated positions for your trading strategy.

What are the advantages and disadvantages of USDT-M futures compared to Coin-M futures?

USDT-M futures offer stable pricing and lower trading costs, ideal for risk management. Coin-M futures suit cryptocurrency holders, providing direct asset hedging and potentially higher leverage, though with greater price volatility.

How to understand the leverage risk in Coin-M futures?

Coin-M futures leverage risk involves amplified losses on large positions. Higher leverage magnifies both gains and losses exponentially. Negative funding rates increase trading costs. Careful position sizing and risk management are essential to mitigate potential losses.

What are the differences in trading fees between USDT-M Futures and Coin-M Futures?

Trading fees differ between USDT-M and Coin-M futures. USDT-M futures are settled in stablecoins, while Coin-M futures are settled in digital currencies. Fee rates typically vary based on trading pairs and your VIP level. Check the official platform for specific fee schedules.