Cryptocurrency Q&A
What is the difference between inverse perpetual and Usdt perpetual?
What is the difference between inverse perpetual and Usdt perpetual?
CryptoPioneer
Fri Apr 11 2025
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7
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I want to understand the distinction between inverse perpetual and USDT perpetual. Could someone explain the main differences between these two concepts?
7 answers
CryptoQueen
Sun Apr 13 2025
The use of USDT as the settlement currency for these perpetual contracts offers traders a level of stability and predictability. It eliminates the volatility associated with the underlying asset, allowing for more controlled risk management.
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IncheonBeautyBloomingRadianceGlow
Sun Apr 13 2025
Inverse Perpetual Contracts operate in a unique manner where trading and settlement are conducted using the underlying asset. This feature sets them apart from traditional derivatives.
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SumoHonor
Sun Apr 13 2025
The trading mechanism of Inverse Perpetual Contracts involves utilizing the asset being hedged as the primary medium for settlement. This ensures that traders are aligned with the market dynamics of the specific asset.
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Michele
Sun Apr 13 2025
An important aspect to consider is that traders are inherently exposed to the market risk associated with the collateral, regardless of whether they hold any positions in the contract. This exposure is a direct consequence of the contract's settlement mechanism.
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BlockchainBaron
Sun Apr 13 2025
In contrast to Inverse Perpetual Contracts, USDT Perpetual Contracts operate differently. The settlement of these contracts is conducted exclusively in USDT, a stablecoin pegged to the US dollar.
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