The USDT contract, also known as the forward contract, is commonly known as the U standard/gold standard.

The forward contract margin uses USDT; the reverse contract means that if a trader wants to trade BTC/ETH/XRP/EOS contracts, the corresponding currency must be used as a margin.

Compared with reverse contracts, USDT contracts have the following characteristics:

  • 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 has a profit/loss of 100USDT, and the profit and loss are proportional to the USDT curve.
  • Reverse contracts use the currency standard. Users need to hold more volatile BTC/ETH/EOS/XRP as margin, so even if the user does not trade, there is certain currency risk. USDT contracts use stablecoins as a margin, and traders do not need to use hedging measures to avoid currency risks.

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