① What is a Coin-Margined Contract?
A Coin-Margined Contract uses the underlying asset (such as BTC, ETH) as margin for position opening and P&L settlement.
② What is a USDT-Margined Contract?
A USDT-Margined Contract uses USDT as margin for position opening and P&L settlement.
- Calculation Comparison
① Calculation of Coin-Margined Contracts
P&L = Transaction Direction * Trade Size * Opening Price * (1/ Opening Price - 1/ Closing Price)
Liquidation Price in Isolated Margin Mode = Transaction Direction * Trade Size * Opening Price / (0.9 * Margin + Transaction Direction * Trade Size - Trading Fee - Funding Fee)
② Calculation of USDT-Margined Contracts
P&L = Transaction Direction * Trade Size * (Closing Price - Opening Price) / Opening Price
Liquidation Price in Isolated Margin Mode = Opening Price + Opening Price * (Funding Fee + Trading Fee - 0.9 * Margin) / (Transaction Direction * Trade Size)
③ The rest of the calculations that do not involve P&L and Liquidation are the same.
① Coin-Margined Contracts
When the market price is moving in your favor,
- Long: Users can trade to profit; the value of the underlying asset rises at the same time. Double benefits.
- Short: For the same amount of decline, the profit rate is greater than that of USDT contracts.
Note: Users can use the "Contract Calculator" to perform trial calculations.
② USDT-Margined Contracts
1. The profit rule is linear, so it is easy to understand.
2.The fiat value is stable, so the P&L is clear and is easy to measure.