TradFi Perps: Quanto perps in USDT? 🤔
The difference is in the currency mechanics.
🔹 USDT-Priced — the asset price accounts for the local currency exchange rate to USD.
🔹 Quanto — the asset can be denominated in HKD or JPY, but the calculation and P&L are settled in USDT without FX conversion.
For example, HK0700USDT (Tencent) and HK1810USDT (Xiaomi) — Quanto contracts.
So before opening a position, look not only at the asset, but also at the contract type. 👀
#Binance #TradFi #TradFiPerps #Quanto #Trading #Crypto
The difference is in the currency mechanics.
🔹 USDT-Priced — the asset price accounts for the local currency exchange rate to USD.
🔹 Quanto — the asset can be denominated in HKD or JPY, but the calculation and P&L are settled in USDT without FX conversion.
For example, HK0700USDT (Tencent) and HK1810USDT (Xiaomi) — Quanto contracts.
So before opening a position, look not only at the asset, but also at the contract type. 👀
#Binance #TradFi #TradFiPerps #Quanto #Trading #Crypto
