Differences between USDT-M and COIN-M futures

1. What are USDT-M futures?

• The USDT-M futures (USDT margined futures) provided by the MEXC is a forward futures, which is a linear derivative product quoted and settled in USDT. USDT is a stable cryptocurrency linked to the value of the US dollar.

• The biggest advantage of the USDT settlement futures is that MEXCers can simply calculate the return in legal currency, making the USDT-M futures more intuitive.

• The USDT-M futures margins are settled in USDT.

• Before opening a position, please make sure that there are available USDT assets in the futures account.

• MEXC currently provides hundreds of USDT-M futures trading pairs, and MEXCers can choose in the upper left corner of the contract interface.

2. What are COIN-M futures？

• The coin margined future provided by the MEXC is an inverse future.

• A futures contract that is denominated in USD but uses cryptocurrency as a margin is called an inverse future.

• Taking the BTC margined future as an example, Bitcoin will be used as the initial margin or to calculate profit and loss.

• The biggest advantage of coin margined futures is that MEXCers can improve the efficiency of capital use, and can trade futures while holding cryptocurrencies.

• Before opening a position, please ensure that there are cryptocurrency assets available in the contract account.

3. USDT-M futures vs COIN-M futures

4. How to choose?

4.1 Reasons for COIN-M futures

• One of the most important reasons for MEXCers to choose COIN-M futures is that it provides position rebates, which is the ideal choice for traders who want to hold positions for a long time.

• Holders of cryptocurrency assets can hedge and trade in the MEXC futures trading without converting any assets into USDT. In other words, MEXCers do not need to sell any cryptocurrency at a low price.

• When the bull market comes, investors are more inclined to continue to hold the encrypted assets in their hands. Since COIN-M futures are settled in coins, profits are directly converted into long-term positions in cryptocurrency, which is an excellent way to accumulate the cryptocurrency MEXCers see in the long-term.

4.2 Reasons for USDT-M futures

• When MEXCers do not hold other encrypted assets other than USDT, they may be more inclined to consider using USDT-M futures.

• Enjoy hundreds of futures trading pairs provided by the MEXC, and use up to 200 times leverage investment to try to obtain capital gains.

Conclusion

• USDT-M futures vs COIN-M futures have their own advantages, and different cryptocurrencies are used as margin and settlement underlying assets.

• MEXCers can trade in the MEXC in terms of their own needs.