Common Questions About USDT-Margined and Coin-Margined Futures
1. What are USDT-Margined Futures?
USDT-margined futures (also called linear contracts) are futures contracts that are priced and settled in stablecoins such as USDT or USDC. On MEXC, USDT and USDC are used as both the margin and settlement currency.
The main advantage is that profits and losses are easy to understand in fiat terms.
For example, if you earn 100 USDT from trading a USDT-margined contract, that is roughly equivalent to 100 USD. No complex conversions are required.
2. What Are Coin-Margined Futures?
Coin-margined futures (also called inverse contracts) are settled in the underlying cryptocurrency, such as BTC, ETH, or XRP. Traders do not need stablecoins as margin and can instead use the corresponding cryptocurrency directly.
MEXC currently offers multiple coin-margined contracts, including BTC and ETH. The key advantage is capital efficiency. You can trade futures while holding your crypto, without converting it into stablecoins.
3. What Is the Difference Between USDT-Margined and Coin-Margined Futures?
Settlement currency
- USDT-margined futures are settled in stablecoins such as USDT or USDC.
- Coin-margined futures are settled in cryptocurrencies such as BTC or ETH.
Margin requirements
- USDT-margined futures use stablecoins as margin.
- Coin-margined futures use cryptocurrencies as margin.
Shared features
Both contract types:
- have no position holding time limit
- support both isolated and cross margin modes
This provides traders with flexible trading options.
4. What Are the Advantages of USDT-Margined Futures?
If you mainly hold stablecoins and do not hold other cryptocurrencies, USDT-margined futures may be the better choice. The MEXC USDT-margined market offers hundreds of trading pairs, with leverage up to 500x.
Another key benefit is clearer profit and loss calculation. Because stablecoins are pegged to USD, traders can easily track actual performance, making risk management and capital planning more straightforward.
5. What Are the Advantages of Coin-Margined Futures?
Coin-margined futures are especially attractive for long-term crypto holders. You can hedge or trade without converting your assets into stablecoins, avoiding potential conversion costs or slippage.
During bull markets, profits are paid in cryptocurrency. This means gains directly increase your long-term holdings of the asset you believe in, supporting both capital growth and value preservation.
6. Which Is Riskier: USDT-Margined or Coin-Margined Futures?
Coin-margined futures involve dual exposure to price volatility. When you go long and the market moves in your favor, you benefit both from the contract profit and the increase in the value of the underlying cryptocurrency.
USDT-margined futures are generally easier to manage from a risk perspective because profits and losses are denominated in stablecoins. They may be more suitable for traders with lower risk tolerance or those who want more predictable returns.
7. Can I Switch Between USDT-Margined and Coin-Margined Futures at Any Time?
You can freely choose which contracts to trade and switch between USDT-margined and coin-margined products.
However, positions cannot be converted directly between the two. To switch contract types, you must close your current position and open a new one manually.
MEXC currently offers hundreds of USDT-margined contracts and dozens of coin-margined contracts (including BTC and ETH), supporting different trading needs and strategies.
8. How Do I Select USDT-Margined or Coin-Margined Futures on the Trading Platform?
Web:
1) MEXC website → top navigation → Futures → select USDT-M Futures, USDC-M Futures or Coin-M Futures
2) On the Futures trading page → click the dropdown button next to the trading pair → select USDT-Margined / USDC-Margined or Coin-Margined
App:
MEXC App → Futures → select USDT-M, USDC-M or COIN-M