A major cryptocurrency exchange has announced the expansion of its derivatives offerings with the introduction of four new USDT-margined perpetual contracts. The newly supported digital assets include BTT, OGN, MASK, and RNDR. Trading for these contracts is scheduled to commence at 14:00 Singapore Time on April 9.
This move is part of the platform's ongoing effort to diversify its product suite and provide traders with more avenues to engage with both emerging and established digital currencies using a stablecoin margin system.
What Are USDT-Margined Perpetual Contracts?
Perpetual contracts are a type of futures contract with no expiration date, allowing traders to hold positions indefinitely. Unlike inverse contracts, which are margined with the base cryptocurrency (e.g., BTC), USDT-margined contracts use Tether (USDT) as the collateral asset.
This means all profits, losses, margin requirements, and settlements are calculated in USDT, simplifying the process for traders who primarily operate using stablecoins.
Key features of these new contracts include:
- High Leverage: Support for leverage from 1x up to 75x.
- Frequent Settlements: Settlements occur every eight hours at 0:00, 08:00, and 16:00 (UTC+8).
- Immediate Profit Withdrawal: Users can withdraw realized profits immediately after each settlement period.
- Index-Based Pricing: The contract price is based on a corresponding spot USDT index for the underlying digital asset.
The Growing Ecosystem of Derivatives
The introduction of BTT, OGN, MASK, and RNDR contracts significantly broadens the exchange's derivatives market. Prior to this launch, its USDT-margined perpetual contracts already covered 85 major cryptocurrencies, including giants like Bitcoin (BTC) and Ethereum (ETH).
This expansion allows traders to:
- Speculate on the price movements of these specific assets without owning them.
- Employ sophisticated trading strategies, including hedging spot market positions.
- Access a wider range of altcoins within a unified margin account using USDT.
For those looking to diversify their trading portfolio with these new instruments, it is crucial to understand the mechanics and risks associated with leveraged trading. 👉 Explore advanced trading strategies
Timeline for the Launch
The rollout of these new contracts follows a specific schedule to ensure a smooth experience for users. The key timings for the launch day are as follows:
- Funds Transfer: Begins at 11:00 Singapore Time. Users can start moving their USDT into their contract accounts to prepare for trading.
- Trading Goes Live: The new perpetual contracts for all four cryptocurrencies will open for trading at 14:00 Singapore Time.
Frequently Asked Questions
What are the main advantages of USDT-margined contracts?
They offer simplicity for traders who hold USDT, as all margins and profits are in a single, stable currency. This eliminates the need to manage exposure to multiple volatile cryptocurrencies when trading different pairs.
How does the 8-hour settlement work?
During settlement, funding rates are exchanged between long and short positions, and any realized profits are made available for withdrawal. The trading itself is not interrupted, and positions remain open unless liquidated or closed by the trader.
Is high leverage recommended for new traders?
No, high leverage amplifies both potential gains and losses. It carries a significant risk of rapid liquidation. New traders are strongly advised to start with low leverage and fully understand the risks before engaging in derivatives trading.
What is the contract multiplier for these new pairs?
The announcement specifies leverage but not the contract multiplier. Traders should consult the exchange's official contract specifications for the value per contract for each asset (e.g., how much 1 contract of BTT is worth in USDT).
Can US citizens participate in trading these contracts?
Regulations for cryptocurrency derivatives trading vary by jurisdiction. Users are responsible for ensuring that their participation complies with the laws and regulations of their country of residence.
Where can I find more educational resources on perpetual contracts?
Most major exchanges provide extensive educational content, including articles, tutorials, and webinars, on how to trade perpetual contracts and manage associated risks. 👉 Learn more about risk management