The USDT Collateralized contract is a type of digital asset derivatives, aimed to replicate the underlying spot market. Traders take USDT as margin to buy/long or sell/short contracts with flexible leverage.
The contract is quoted and settled in USDT. P&L calculation is denominated in USDT as well. The contract has no expiration date and is designed to closely track the spot price of the underlying asset via Funding mechanism.
USDT Collateralized BTC Perpetual Contract/ BTCUSDTPERP Guide:
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The underlying price is BTC/USDT Spot Index. This Index is the volume-weighted average USDT price of BTC in 6 exchanges including Huobi, OKX, Binance, Kucoin, Poloniex and Hitbtc. |
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Multiplier |
0.001 |
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Value of a contract |
0.001 BTC |
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USD Contract Value |
Multiplier * BTCUSDTPERP Price |
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P&L Calculation |
No. of Contracts * Multiplier * ( Exit Price - Entry Price) |
You could view these contract details in Futures Guide.
Traders who decide to long this contract can make a profit if the BTC/USDT price rises. On the contrary, traders who decide to short will make a profit if the BTC/USDT price drops.
For example, a trader longs 1,000 contracts at a price of 10,000 USDT. Equivalently, they are longing 1,000 * 0.001 = 1 BTC. After several days, the price rises to 11,000 USDT, so trader earn a profit of 1,000 * 0.001 * (11,000 - 10,000) = 1,000 USDT. On the contrary, a trader who is shorting the same amount of contracts will lose 1,000 USDT during this time. (Fees are not included)