What Is USDT-M Futures Trading and How to Perform It?

This article explains USDT-M Futures Trading, a form of cryptocurrency futures trading on BITGP where settlements are made in USDT. The guide provides step-by-step instructions for both the BITGP Mobile App and the BITGP Website to help you get started.

What is USDT-M Futures Trading?

USDT-Margined (USDT-M) Futures Trading is a type of cryptocurrency futures trading that uses USDT (Tether, a stablecoin pegged to the US Dollar) as both the settlement and margin currency. This method allows traders to speculate on the price movements of various cryptocurrencies through perpetual or quarterly futures contracts without needing to hold the underlying assets.

Key Features of USDT-M Futures

• Simplified Accounting: All profits, losses, and margin calculations are denominated in USDT, a stablecoin tied to the US Dollar.
• Perpetual Contracts: Trade perpetual contracts with no expiration date.
• Leverage Options: Offers adjustable leverage to amplify trading positions.
• Hedging Capabilities: Hedge positions without converting to other cryptocurrencies.

How to Start USDT-M Futures Trading on the BITGP Website

Step 1: Navigate to USDT-M Futures

Click Futures in the top menu

Step 2: Choose a Trading Pair

In the USDT-M Futures section, search for and select your desired trading pair (e.g., BTCUSDT, ETHUSDT).

Step 3: Configure Trade Settings and Place Your Order

1. Select the Margin Mode:
   • Cross Margin: Uses your entire account balance as collateral for all positions.
   • Isolated Margin: Limits collateral to the specific position you open.
2. Click Leverage and adjust the multiplier for your trade.
3. Choose the Order Type.
4. Enter the order details and select Open Long or Open Short based on your market outlook.
5. Confirm the order.
   

Step 4: Monitor and Manage Your Position

1. Go to the Positions tab in the trading interface to view open trades.
2. Use the Close button to exit your trade.
   

How to Start USDT-M Futures Trading on the BITGP Mobile App

Step 1: Navigate to USDT-M Futures

1. Tap Futures on the bottom menu bar.
2. Select USDT-M to access the trading interface.
   

Step 2: Choose a Trading Pair

In the USDT-M Futures trading interface, search for and select your preferred trading pair (e.g., BTCUSDT, ETHUSDT).

Step 3: Configure Trade Settings and Place Your Order

1. Select the Margin Mode:
   • Cross Margin: Uses your entire account balance as collateral for all positions.
   • Isolated Margin: Limits collateral to the specific position you open.
2. Tap Leverage to adjust the multiplier for your trade.
3. Choose the Order Type.
4. Enter the order details and tap Open Long (if you predict a price increase) or Open Short (if you predict a price decrease).
5. Confirm the order.

Step 4: Monitor and Manage Your Position

1. Visit the Positions tab to monitor open trades.
2. Use Close Position to exit a trade when desired.

Important Tips for USDT-M Futures Trading

• Understand Leverage Risks: Higher leverage amplifies both gains and losses. Trade with caution.
• Use TP/SL Features: Set Take-Profit (TP) and Stop-Loss (SL) levels when placing orders to automate exits based on predefined thresholds.
• Monitor Liquidation Risks: Maintain a sufficient margin ratio to avoid forced liquidation.
• Stay Informed: Keep track of market trends and price movements to refine your strategy.

FAQs

1. What is the minimum amount required for USDT-M futures trading?
   • The minimum varies by trading pair and margin requirements. Check the trading interface for specifics.
2. How does margin work in USDT-M futures?
   • Margin is the USDT collateral used to support your positions. You can opt for cross margin or isolated margin modes.
3. What happens if my margin ratio falls too low?
   • If your margin ratio drops below the maintenance level, your position will be liquidated.
4. Can I trade USDT-M futures on both the app and website?
   • Yes, USDT-M futures trading is available on both the BITGP app and website with comparable features.
5. Can I change leverage after opening a position?
   • Yes, you can adjust leverage for open positions, but this impacts risk and margin requirements.

Disclaimer and Risk Warning

All trading tutorials provided by BITGP are for educational purposes only and do not constitute financial advice. The strategies and examples shared are illustrative and may not reflect real-time market conditions. Cryptocurrency trading carries significant risks, including the potential loss of your funds. Past performance is not indicative of future results. Always conduct thorough research and understand the risks involved. BITGP is not responsible for any trading decisions made by users.