Introduction to COIN-Margined Futures
COIN-margined futures are derivative contracts where traders use cryptocurrencies (like BTC or ETH) as collateral instead of stablecoins. These contracts allow traders to speculate on price movements while maintaining exposure to their original asset, making them ideal for hedging and leveraged trading.
XT.Exchange offers COIN-margined perpetual futures, enabling traders to hold positions indefinitely without expiration dates. This guide covers everything you need to know—from key features to step-by-step trading instructions.
1. What Are COIN-Margined Futures?
COIN-margined futures are contracts where:
- Collateral is in crypto (e.g., BTC, ETH) rather than USDT.
- Profits/losses are settled in the same cryptocurrency.
- Leverage is available, allowing traders to amplify gains (or losses).
Key Terminologies
✔ Cross Margin Mode – Uses entire account balance as collateral (higher leverage, higher risk).
✔ Isolated Margin Trading – Limits collateral per position (lower risk, controlled exposure).
✔ Limit/Market/Trigger Orders – Different order types for precise trade execution.
✔ Funding Fee – Periodic payments between long and short traders (applies to perpetual contracts).
2. Key Features of COIN-Margined Contracts
✅ Crypto as Collateral – No need to convert holdings into stablecoins.
✅ High Leverage (Up to 125X on XT.Exchange) – Maximize capital efficiency.
✅ Hedging Capabilities – Protect against market volatility.
✅ Multiple Order Types – Limit, market, and trigger orders for flexible trading.
3. Pros and Cons of COIN-Margined Futures
Advantages
✔ Profit in Bull & Bear Markets – Go long or short with leverage.
✔ Hedging for Miners & Long-Term Holders – Lock in prices without selling assets.
✔ Lower Entry Barrier – Trade with minimal capital using leverage.
Disadvantages
❌ Volatility Risk – PNL fluctuates with crypto prices.
❌ Complexity for Beginners – Requires understanding of leverage and margin.
❌ Funding Fees (for Perpetuals) – Adds to trading costs.
4. USDT-Margined vs. COIN-Margined Futures
| Feature | USDT-Margined | COIN-Margined |
|---|---|---|
| Collateral | USDT (Stablecoin) | BTC, ETH, etc. |
| Settlement | Profits in USDT | Profits in crypto |
| Best For | Fiat-based traders | Crypto holders & hedgers |
| Volatility Impact | Stablecoin reduces risk | Exposed to crypto price swings |
When to Use Which?
- Bull Market? Long COIN-margined contracts maximize gains.
- Bear Market? Short USDT-margined contracts hedge downside.
5. What Are COIN-Margined Perpetual Futures?
Unlike traditional futures, perpetual contracts have no expiry date. Key features:
- No settlement date – Hold positions indefinitely.
- Funding fees – Long/short traders periodically pay/receive fees.
- High liquidity – Trade popular pairs like BTC/USD and ETH/USD.
6. How to Trade COIN-Margined Perpetual Futures on XT.Exchange
Step 1: Log In & Navigate to COIN-M Futures
- Go to Derivatives → COIN-M Futures → Perp.
Step 2: Analyze the Market
- Check real-time price charts, order book, and trade history.
Step 3: Fund Your Futures Account
- Transfer crypto from Spot to Futures Wallet (or buy crypto directly).
Step 4: Place an Order
- Choose Limit/Market Order.
- Select “Open Long” (bullish) or “Open Short” (bearish).
Step 5: Adjust Leverage (Up to 125X)
- Switch between Cross Margin (default) or Isolated Margin.
Step 6: Set Stop-Loss & Take-Profit
- Manage risk with automated exit points.
Why Trade COIN-Margined Futures on XT.Exchange?
✔ 125X Leverage – Maximize trading power.
✔ No Expiry (Perpetual Contracts) – Trade without time limits.
✔ Low Fees – Competitive maker/taker rates.
✔ Secure & Reliable – Trusted by 8M+ users.
Start Trading Today on XT.Exchange – Your Gateway to Crypto Derivatives!