Phemex now offers USDT-margined perpetual contracts, allowing traders to open long and short positions with no expiration date that will be settled in USDT.
These perpetual contracts are priced in USDT, and all margin, profit, and loss are also calculated in USDT. Take the BTC/USDT pair for example, if a trader holds a long position on a 1 BTC contract and the price of BTC rises by $100, then the trader’s profit is 100 USDT.
Below are some specific advantages that USDT-margined contracts provide, and we fully recommend that you trade them.
1) More Precise Price Accuracy
For USD-margined contracts we support 4-digit decimal precision (0.0001) whereas for USDT-margined contracts we support 8-digit decimal precision (0.00000001). This means that even the slightest price changes can be captured for smaller altcoins, enabling precise price entry for you.
2) Greater Market Depth with Better Liquidity
More and more traders are trading USDT contracts, propelling their market depth above that of USD contracts, along with better liquidity and lower slippage. All this empowers you to execute trades at the expected price more quickly.
3) Reduce Losses from Conversions
When users deposit USDT, USDC, or other stables and want to trade USD contracts, they first need to convert these funds into USD. This conversion process typically results in slight losses.
(Note: We’ve received much feedback from users being confused about this conversion loss, and the majority expressed desire to trade USDT contracts.)
Additionally, because our USD contracts are quoted in USD, their pricing may have some discrepancy with USDT pairs on other exchanges, resulting in the potential for more user confusion and misjudgement.
4) Abundant Asset Selection
The market’s hottest and trendiest coins will be immediately listed as USDT perpetuals, allowing users to grasp trading opportunities right away.
5) Additional New Features
USDT-margined contracts support hedge mode for greater risk management options. In the future, we will release more product features for USDT contracts to satisfy your various trading needs.