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Introduction to USDT-Margined Perpetual Futures

Updated
USDT-margined perpetual contracts are derivative products settled in the stablecoin USDT, also known as linear perpetual contracts. Traders can:
  • Buy/Long to profit from cryptocurrency price appreciation
  • Sell/Short to gain from price declines
These contracts feature adjustable leverage multiples.
RooEx primarily offers USDT-margined perpetual contract trading services.
Key Characteristics of USDT Perpetual Contracts:
  • Priced and settled in USDT
  • USDT maintains a 1:1 peg to the USD
The main characteristics of these contracts include:
Available Trading Pairs BTC/USDT, ETH/USDT,and more
Settlement Method USDT only
Settlement Times Every 8 hours, specifically at UTC 04:00、12:00、20:00
Minimum Order Size 10.0000 USDT/contract, 100.0000 USDT/contract (BTC)
Margin Modes Cross margin, isolated margin
Trading Modes Open positions, close positions
Fees Funding fees; trading fees
Unlike delivery contracts which have fixed expiration dates and settlement prices, USDT-margined perpetual contracts [have no expiry and never settle]. These contracts use a funding rate mechanism to maintain price convergence with spot markets.
Key Features:
  • USDT perpetual contracts settle every 8 hours (UTC 04:00, 12:00, 20:00 daily)
  • Only traders holding positions at settlement pay/receive funding fees
  • Positions closed before funding intervals incur no fees
Trading Operations
USDT perpetual contracts support two primary actions, each with buy/sell directions:
  1. Open Long (Bullish)
    • Buy contracts to establish long positions when anticipating price rises
    • System increases long position volume upon execution
  2. Close Long (Exit Bullish Position)
    • Sell contracts to liquidate existing long positions
    • The system reduces long position volume upon execution
  3. Open Short (Bearish)
    • Sell contracts to establish short positions when anticipating price drops
    • System increases short position volume upon execution
  4. Close Short (Exit Bearish Position)
    • Buy contracts to liquidate existing short positions
    • The system reduces short position volume upon execution