Introduction
OrangeX provides USDT-Margined Perpetual Contracts, and below are the key features:
- Settlement in USD-settled assets: contracts are denominated and settled in USDT
- Expiration: Perpetual
- Clear pricing rules: Each USDT-Margined perpetual contract specifies the base asset's quantity delivered for a single contract, also known as "Contract Unit." For instance, BTCUSDT Perp, ETHUSDT Perp contracts represent only one unit of its respective base asset, similar to spot markets
Advantages of USDT-Margined Perpetual Contracts
USDT-Margined Perpetual Contracts are linear contract quoted and settled in USDT. One of the key benefits of USDT-margined perpetual contract is that you can easily calculate your returns in fiat. This makes USDT-Margined Perpetual contracts more intuitive. For example, when you make 500 USDT in profit, you can easily estimate that the profit is worth approximately $500 - since the value of 1 USDT is pegged closely to 1 USD.
Additionally, a universal settlement currency, such as USDT, provides more flexibility. You can use the same settlement currency in various Perpetual contracts (i.e., BTCUSDT Perp, ETHUSDT Perp, XRPUSDT Perp, etc.), which eliminates the need to buy the underlying coins to fund positions. As such, you will not incur excessive fees as there is no additional conversion required when trading with USDT.
In periods of high volatility, USDT-Margined perpetual contracts can help reduce the risk of large price swings. Thus, you do not need to worry about hedging their underlying collateral exposure.