A quick guide to futures trading: coin-margined and U-margined contracts
· Coin-margined contracts use the underlying coin as collateral, and profits and losses are settled in that coin. For example, profits and losses on a BTC coin-margined contract are calculated in BTC.
· U-margined contracts are priced in stablecoins such as USDT and USDC, and profits and losses are settled in the corresponding stablecoin. Under Binance’s unified margin mode, assets such as BTC can also be converted into collateral.
Take $BTC as an example: BTCUSDT calculates profits and losses in USDT, while the coin-margined BTCUSD contract calculates them in BTC.
· Coin-margined contracts use the underlying coin as collateral, and profits and losses are settled in that coin. For example, profits and losses on a BTC coin-margined contract are calculated in BTC.
· U-margined contracts are priced in stablecoins such as USDT and USDC, and profits and losses are settled in the corresponding stablecoin. Under Binance’s unified margin mode, assets such as BTC can also be converted into collateral.
Take $BTC as an example: BTCUSDT calculates profits and losses in USDT, while the coin-margined BTCUSD contract calculates them in BTC.