USDT-margined contract is a kind of digital asset derivatives. OrangeX users can make profits from the rising/falling price of digital assets by going long or selling short positions based on their own judgment. OrangeX offers USDT-Margined Futures products, and here is the key information:
| USDT-Margined |
| Collateral |
USDT |
| Margin Type |
Isolate/Cross |
| Cross collateral |
Yes |
USD-margined contracts on OrangeX Futures offer the following characteristics:
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Settlement in USD-pegged assets: contracts are denominated and settled in USDT.
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Expiration: Perpetual and Quarterly.
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Clear pricing rules: each futures contract specifies the base asset's quantity delivered for a single contract, also known as "Contract Unit." For instance, BTC/USDT, ETH/USDT, and BNB/USDT futures contracts represent only one unit of its respective base asset, similar to spot markets.
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Funding fee: USDT-Margined Perpetual contracts carry a funding fee. Funding payments are transferred between traders and are charged every eight hours.
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Advantages of USDT-Margined Futures Contracts
USDT-Margined contracts are linear futures quoted and settled in USDT. One of the key benefits of USDT settlement is that you can easily calculate your returns in fiat. This makes USDT-Margined contracts more intuitive.
For example, when you make 500 USDT in profit, you can easily estimate that the profit is worth approximately $500 USDT- 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 across various futures contracts (i.e., BTC, ETH, XRP, etc.). This eliminates the need to buy the underlying coins to fund future 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 contracts can help reduce the risk of large price swings. Thus, you do not need to worry about hedging their underlying collateral exposure.
Minimum Order Notional Limit Rule for USDT-Margined Futures Contracts
The minimum notional value of each order must be no less than the threshold of 0.001 BTC. If the order notional value is less than the set threshold (0.001 BTC x price), it will be rejected.
For example, if the user opens an order of 0.001 BTC notional value, the order can be successfully placed; if the user opens an order < 0.001 BTC notional value, the order will be rejected.
Please note: OrangeX Futures may adjust the minimum order threshold periodically without prior notice, and users can refer to the API for details.