What is cryptocurrency contract trading?

Cryptocurrency contracts are contracts that represent the value of a particular cryptocurrency. When you buy a futures contract, you do not own the underlying cryptocurrency. What you have is a contract that you agree to buy or sell a specific cryptocurrency at some point in the future.

What is a perpetual contract?

Perpetual contracts have no expiry date. Therefore, unlike quarterly contracts, traders do not need to track individual delivery months. For example, traders can hold short positions forever as long as they are not forced to close out.

What are U-based and coin-based contracts?

• USDT contract, namely forward contract, commonly known as U-standard contract. The margin is USDT. The margin calculation and profit and loss calculation of USDT forward contracts are more intuitive than reverse contracts. When trading a 1BTC contract, the price fluctuates by 100USDT, and the trader gains/loss 100USDT, and the profit and loss is proportional to the USDT curve.
• Coin-based contract, that is, the reverse contract. It means that if a trader wants to trade BTC/ETH/XRP/EOS contracts, they must use the corresponding currency as a margin. Therefore, users need to hold more volatile BTC/ETH/EOS/XRP as margin, so even if users do not trade, there is still a certain risk of holding currency. USDT contracts use stable coins as margins, and traders do not need to use hedging measures to avoid currency holding risks.