Is the contract buying currency standard or U standard? What's the difference?

Contracts are usually divided into two types: currency standard and U standard for investors to choose from. Coin standard refers to position opening and final delivery, using the corresponding underlying products, while U standard refers to position opening and final delivery. USDT is used as the circulation certificate. Newbies often don’t know whether the contract purchase currency standard or U standard? To decide which one to buy, you need to understand the difference between contract buying currency standard and U standard? From the data analysis point of view, the main differences between the two are the four aspects: pricing unit, contract value, currency used as collateral assets, and currency used to calculate profits and losses. The specific decision to choose depends on the preferences of investors. The editor below will tell you in detail.

Is the contract buying currency standard or U standard?

U-standard and currency-standard have their own advantages and disadvantages. U-standard and currency-standard generally refer to margin contracts, including perpetual contracts and delivery contracts. Margin contracts generally come with their own leverage. When trading, Be sure to calculate the leverage ratio. Under normal circumstances, it is strongly recommended not to use leverage. When the bottom is relatively high and the probability is very high, do not exceed 2 times the leverage. Otherwise, even if you succeed once, twice or even 100 times, the final liquidation is still inevitable. .

Coin-based contracts are also called inverse contracts, such as BTC/USD, and the pricing unit is USD. The currencies used as collateral assets and to calculate profits and losses are the currencies of transactions, such as BTC, ETH, etc.

U-based contracts, also known as forward contracts, such as BTC/USDT, are priced in the stable currency USDT. The currencies used as collateral assets and for calculating profits and losses are all stable currency USDT.

For investors, when the general trend of the market is judged to be a bull market, choosing to do multi-currency-based contracts can expand profits; and when the general trend of the market is judged to be a bear market, for trend trading users, choosing Shorting USDT margin contracts can better expand profits.

When the short-term market is rising, choose to go long on the currency-based contract, and when the short-term market is falling, choose to go short on the USDT margin contract. For currency-based contracts, its typical user group is hedging users, such as miners, who are characterized by the need to hold a certain currency for a long time.

What is the difference between contract buying currency standard and U standard?

The difference between the contract buying currency standard and the U standard is mainly in the four aspects of pricing unit, contract value, currency used as collateral assets, and currency used to calculate profits and losses. The following is a detailed analysis:

1. The pricing unit is different. The currency-margined perpetual contract is priced in USD, while the index price of the BTC/USD currency-margined perpetual contract is based on the price of OYI BTC spot against the US dollar.

The U-margined perpetual contract is priced in USDT. For example, the index price of the BTC/USDT perpetual contract is the price of OYI BTC spot against USDT.

2. Different contract values

The value of each contract of the currency-based perpetual contract is USD. For example, the face value of the BTC/USD contract is USD 100.

The value of each USDT-margined perpetual contract is the corresponding underlying currency. For example, the face value of BTC/USDT is 0.001 BTC.

3. Different currencies serve as collateral assets

Coin-margined perpetual contracts use the underlying currency as the collateral asset. Users need to hold the corresponding underlying currency to participate in the transaction of this type of contract. , such as the BTC/USD currency-based perpetual contract, users need to transfer BTC as collateral assets.

All types of USDT-margined perpetual contracts use the pricing currency USDT as a collateral asset. Users only need to hold USDT to participate in the transactions of various types of contracts.

4. Different currencies for calculating profit and loss

The currency-margined perpetual contract calculates the profit and loss based on the underlying currency. For example, if a user trades the BTC/USD currency-margined perpetual contract, the currency of the profit and loss is BTC. .

USDT-margined perpetual contracts use the pricing currency USDT to calculate profits and losses for all types of contracts.

The above is the detailed content of Is the contract buying currency standard or U standard? What's the difference?. For more information, please follow other related articles on the PHP Chinese website!