USDT-M vs COIN-M futures: which one should you use?
Escoin Exchange offers two kinds of perpetual futures. This guide explains how USDT-margined and coin-margined contracts differ and when each one makes sense.
Escoin Exchange has two kinds of perpetual futures: USDT-M and COIN-M. Both let you go long or short with leverage and neither has an expiry date. The difference is the currency you use as margin and the currency your profit and loss is paid in.
USDT-M: margin and profit in USDT
USDT-M contracts (/futures) use USDT as margin. If you open a BTC/USDT position, your margin, fees and profit or loss are all in USDT. The result is easy to read: each 1 USDT price move changes your profit by 1 USDT for every coin in your position.
- Isolated or cross margin
- Take-profit and stop-loss orders
- You move USDT from Spot to your futures wallet on the Assets page (/assets)
COIN-M: margin and profit in the coin
COIN-M contracts (/futures/coin-m) are inverse contracts named like BTCUSD. Each contract has a fixed value in US dollars, but your margin, fees and profit or loss are in the coin itself, for example in BTC. COIN-M positions use isolated margin.
Because your margin is the coin, the coin price affects you twice. In a long position you gain on the trade and your margin is worth more when the price rises; when the price falls, you lose on both. In a short position the coin margin works as a partial hedge.
Which one fits you?
- You think in dollars and want simple numbers: USDT-M.
- You already hold BTC or ETH and want to hedge or grow your coin balance without selling it: COIN-M.
- You are new to futures: start with USDT-M, small positions and low leverage.
What is the same
Both products use the same trading fees, maintenance margin and funding schedule. Before your first futures trade you take a short quiz about how futures work. The maximum leverage depends on the contract and is shown on the trading page. Leverage multiplies both profit and loss, and you can lose your whole margin, so always check the liquidation price of your position.
See the current fees on the Fees page (/fees) and the most common questions in the Help Center (/help).