Key Takeaways
- The core difference between USDT-margined and coin-margined futures lies in the settlement currency and the way profit and loss are calculated.
- USDT-margined futures use stablecoins such as USDT as margin and settlement units, offering more intuitive PnL calculation and higher account stability.
- Coin-margined futures use the underlying cryptocurrency as margin and settlement units, meaning profits and losses are simultaneously affected by price fluctuations of the asset itself.
- Different margin structures do not change the fundamental risk of futures trading; they only alter how risk is reflected in account performance.
- On trading platforms such as BitMart, understanding the difference between USDT-margined and coin-margined futures is an important step for beginners when choosing contract types.
Why Are Futures Divided Into USDT-Margined And Coin-Margined Futures?
When first entering futures trading, many users encounter a common question:
Why are futures divided into USDT-margined and coin-margined contracts? What is the real difference between them?
If the distinction is understood merely as “using different assets,” traders may overlook how this choice directly affects profit calculation, risk exposure, and account volatility. On cryptocurrency trading platforms like BitMart, selecting a futures contract type essentially determines how a trader bears and perceives risk.
Understanding the differences between USDT-margined and coin-margined futures helps beginners establish clearer expectations before entering futures trading.
USDT-Margined Futures: Stablecoin-Based Settlement
USDT-margined futures generally refer to contracts that use stablecoins such as USDT as margin and profit-and-loss settlement units.
In BitMart’s USDT-margined futures, traders use USDT as margin to open positions. Regardless of whether the underlying contract is BTC, ETH, or another asset, all profits and losses are reflected directly in USDT.
This structure offers several characteristics:
- Intuitive profit and loss calculation
- Clear visibility of account balance changes
- No additional impact from price fluctuations of the settlement currency itself
For beginners new to futures trading, USDT-margined futures closely resemble the “cash-settled” logic used in traditional financial markets, making it easier to understand position size, margin usage, and risk dynamics.
Coin-Margined Futures: PnL Fluctuates With Asset Price
Unlike USDT-margined contracts, coin-margined futures use the underlying cryptocurrency itself as margin and settlement currency.
For example, in BitMart’s BTC coin-margined futures, traders post BTC as margin, and profits or losses are calculated in BTC rather than USDT.
This means:
- Even if a futures position is profitable
- A decline in BTC price may still reduce the account’s overall value
- Profit and loss are jointly affected by both contract direction and asset price fluctuations
As a result, coin-margined futures are more suitable for traders who hold a long-term view on a specific cryptocurrency or aim to integrate futures trading into broader asset-holding strategies, rather than focusing solely on short-term price movements.
Margin Type Does Not Change The Fundamental Risk Of Futures Trading
One critical point must be clearly emphasized:
The distinction between USDT-margined and coin-margined futures does not reduce or eliminate the inherent risks of futures trading.
Whether trading USDT-margined or coin-margined futures on BitMart:
- Leverage still amplifies price movements
- Incorrect market judgment still accelerates margin consumption
- Forced liquidation mechanisms still apply
The difference lies primarily in how risk is expressed and how account value fluctuates—not in whether risk exists.
How Should Beginners Choose?
For users who are just starting with futures trading, choosing a margin type is essentially about selecting a structure that makes risk easier to understand and manage.
Generally speaking:
- If account stability and intuitive PnL tracking are priorities, USDT-margined futures are easier to get started with
- If a trader already holds a specific cryptocurrency and seeks to enhance asset-based strategies through futures, coin-margined futures may be more suitable
On futures trading platforms such as BitMart, understanding settlement logic and sources of risk is a necessary preparation step regardless of which margin type is chosen.
Futures Types Are Tools—Risk Awareness Remains The Key
USDT-margined and coin-margined futures are simply different structural forms of futures trading. Neither implies an “easier way to make money.”
Ultimately, trading outcomes are determined by:
- Market judgment
- Leverage usage
- Risk management discipline
Only with a solid understanding of futures trading mechanisms can USDT-margined or coin-margined futures become controllable trading tools on platforms like BitMart—rather than unpredictable sources of risk.
