Bybit offers two main types of futures contracts: USDT-M (USDT-Margined) and Coin-M (Coin-Margined). Understanding their differences and knowing how to optimize your trades can help you maximize profits and manage risks effectively.
What are USDT-M and Coin-M Contracts?
USDT-M (USDT-Margined) Contracts
- Settled in USDT: Profits and losses are calculated in USDT.
- Linear contracts: Easier for beginners as calculations are straightforward.
- Supports cross and isolated margin modes.
- Popular trading pairs: BTC/USDT, ETH/USDT, and other major cryptocurrencies.
Coin-M (Coin-Margined) Contracts
- Settled in the underlying cryptocurrency (e.g., BTC, ETH).
- Inverse contracts: Requires holding the base asset (e.g., BTC for BTC/USD contracts).
- Potentially higher profits when the asset appreciates.
- Used mainly by experienced traders who want exposure to asset appreciation.
Key Differences Between USDT-M and Coin-M Contracts
| Feature | USDT-M Contracts | Coin-M Contracts |
|---|---|---|
| Settlement | USDT | Cryptocurrency (BTC, ETH, etc.) |
| Pricing Structure | Linear | Inverse |
| Risk Exposure | Stable (USDT-based) | Volatile (depends on crypto price movements) |
| Ideal For | Beginners & stable returns | Experienced traders & asset appreciation |
How to Trade USDT-M and Coin-M Contracts on Bybit
Step 1: Log in to Bybit
- Visit Bybit’s official website and log into your account.
Step 2: Choose USDT-M or Coin-M Contracts
- Navigate to “Derivatives” in the top menu.
- Select either USDT Perpetual (USDT-M) or Inverse Perpetual (Coin-M).
Step 3: Set Up Your Trade
- Select your trading pair (e.g., BTC/USDT for USDT-M, BTC/USD for Coin-M).
- Choose cross or isolated margin mode.
- Set your leverage (1x to 100x, depending on risk tolerance).
Step 4: Place an Order
- Market Order: Instant execution at the best price.
- Limit Order: Executes only at your set price.
- Conditional Order: Triggers based on specific conditions.
Step 5: Manage Your Trade
- Monitor your margin ratio to avoid liquidation.
- Use stop-loss and take-profit orders to manage risk.
- Adjust leverage or close positions as needed.
Tips for Optimizing USDT-M and Coin-M Trading
- Use Proper Risk Management: Avoid over-leveraging and always set stop-loss orders.
- Monitor Funding Rates: Be aware of funding fees, as they vary between contracts.
- Utilize Hedging Strategies: Trade both USDT-M and Coin-M to balance risk and exposure.
- Stay Updated on Market Trends: Follow news and technical analysis to anticipate price movements.
- Test with Small Positions First: If you are new, start with low leverage and small trade sizes.
Final Thoughts
Both USDT-M and Coin-M contracts offer unique benefits for traders on Bybit. While USDT-M contracts provide a stable and straightforward trading experience, Coin-M contracts allow traders to benefit from cryptocurrency price appreciation. Choosing the right type depends on your trading strategy and risk tolerance.
👉 Start trading on Bybit today and optimize your futures trading experience!
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