About USDT-Margined Futures
Echuca Trading's USDT-margined futures differ from inverse contracts. They are futures quoted and settled in USDT/USDC. Both USDT and USDC are stablecoins pegged to the value of the US dollar.
The biggest advantage of USDT-margined futures is that they are settled in US dollars, meaning you can easily calculate your profits in fiat currency. For example, when you earn a profit of 1000 USDT, you can easily estimate that this profit is almost equivalent to 1000 US dollars - because the value of 1 USDT is almost equal to 1 US dollar.
Features of USDT-Margined Futures:
1. Settled in USDⓈ: Futures are priced and settled in USDT or USDC.
2. Expiration: Perpetual contracts have no specific expiration date, while quarterly delivery contracts expire on the last Friday of the last month of the quarter.
3. Clear Quantity Rules: Each USDT-margined futures contract specifies a certain amount of the underlying asset, i.e., the contract multiplier. For example, in perpetual contracts like BTC/USDT, ETH/USDT, and ARB/USDT, the contract multipliers are 0.001, 0.01, and 1, respectively. This means that each BTC/USDT contract equals 0.001 BTC, each ETH/USDT contract equals 0.01 ETH, and each ARB/USDT contract equals 1 ARB.
4. Leverage Multiplier: USDT-margined contracts of different underlying assets support different maximum leverage multipliers.
5. Funding Fee: To balance the price deviation between spot and futures trading markets, USDT-margined perpetual contracts incur funding fees based on market price conditions and long/short position holdings. These fees are swapped and changed among traders every eight hours.
|
Terms |
Explanation |
| Quantity |
A USDT-margined futures position is measured by the number of contracts. Each trading pair has a specific contract multiplier. Long positions are represented by a positive amounts, while short positions are negative. |
| Value | The value of a USDT-margined position is calculated in stablecoins, where Position Value = Price × Amount. |
| Entry Price |
The average opening price of a position adjusts whenever you add to or reduce a position. Example: You have a BTC/USDT futures position, going long for 1,000 contracts. Your entry price is 50,000 USDT. An hour later, you decide to add 2,000 more contracts with an entry price of 60,000 USDT. Then: Average Entry Price = Total Entry Price of BTC Contracts ÷ Total No. of Contracts Total No. of Contracts: 1,000 + 2,000 = 3,000 Total Value of BTC Contracts = 50,000 + 120,000 = 170,000 USDT Average Entry Price = 170,000 ÷ (3,000 × 0.001) = 56,666.7 |
| Mark Price | The current mark price of a USDT-margined contract. |
| Liquidation Price | See section on liquidation prices. |
| Margin | Margin for a Position = Initial Margin + Unrealized PNL + Pre-Allocated Liquidation Fees + Any Added/Withdrawn Margin + Funding Fees |
| Position Leverage | Actual Leverage of Position = Position Mark Value ÷ (Margin - Pre-calculated Liquidation Fees) |
| Unrealized PNL |
Users can choose whether unrealized PNL is calculated using the mark price or the last traded price. Unrealized PNL = Position Size × (Mark Price or Last Price - Average Entry Price)
Long Position: You have a BTC/USDT stablecoin-margined position. You hold 1,000 long contracts. Your entry price is 50,000 USDT. When the latest mark price is 55,000 USDT, your unrealized PNL will show 5,000 USDT. Unrealized PNL = Position Size × [(Mark Price) - (Average Entry Price)] = 1 × [(55,000) - (50,000)] = 5,000 USDT
Short Position: You have a BTC/USD stablecoin-margined position. You hold 1,000 short contracts. Your entry price is 50,000 USDT. When the latest mark price is 45,000 USDT, your unrealized PNL will show 5,000 USDT. Unrealized PNL = Position Size × [(Mark Price) - (Average Entry Price)] = -1 × [(45,000) - (50,000)] = 5,000 USDT
Note: The calculation of unrealized PNL does not include any trading fees or funding fees incurred during the opening, closing, or holding of positions. |
| ROI | ROI = Unrealized PNL ÷ Initial Margin |
| Realized PNL |
Realized PNL = ∑(PNL From Reducing Positions) - Trading Fees - Total Funding Fees Since Opening Realized PNL is the profit or loss from closing or reducing positions. It includes the PNL from the actual trade, trading fees, and total funding fees. It is calculated as the difference between the average entry and exit prices. Example: You have a BTC/USDT stablecoin-margined position. You hold 1,000 long contracts. Your entry price is 50,000 USDT. You close 500 contracts of the position at a price of 55,000 USDT, with a partial position of 500 contracts remaining. Partial Position PNL: 500 × 0.001 × [55,000 - 50,000] = 2,500 USDT Position Opening Fee: (50,000) × 0.06% = 30 USDT Position Closing Fee: (55,000) × 0.06% = 33 USDT Assume Total Funding Fees Received: 3 USDT Realized PNL: 2,500 - 30 - 33 + 3 = 2,400 USDT |
Notes:
The contract orders must be an integer multiple of the contract multiplier. If ordering by amount, you can open the maximum number of contracts possible for the specified amount. If ordering by quantity, it must also be an integer multiple of the contract quantity.
Echuca Trading Futures Trading Guide: