Coin-margined contracts, also known as reverse contracts, are settled in cryptocurrency. Venkate supports perpetual contracts for these.
Coin-margined perpetual contracts allow users to speculate on price movements by going long or short, similar to a collateralized asset spot market. Prices are close to the reference index price, anchored mainly by the funding fee mechanism.
Perpetual contracts have no expiration date, and realized and unrealized P&L is settled into the user's account balance every 8 hours.
Characteristics of Coin-Margined Contracts
Priced and Settled in Cryptocurrency: No need to hold stablecoins as margin. Earnings can be used for long-term capital accumulation.
Additionally, the value of collateral increases as prices rise. Over time, this is an excellent way to increase cryptocurrency holdings.
To hedge positions in the contract market, there is no need to convert assets to USDT. Thus, there is no need to sell any cryptocurrency at a compromised price.
To hedge, simply establish a short position in any Binance coin-margined quarterly futures contract. If the underlying asset price drops, the contract position's gains will offset the portfolio losses.
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