USDT-Margined vs. COIN-Margined Contracts
Binance offers two types of futures contracts. Understanding the difference helps you choose the right one. Register for Binance to start trading, and download the APP. Visit our guides for more.
USDT-Margined (USD-M) Contracts
Also called "linear contracts." Settled and margined in USDT.
Key features:
- Margin: USDT
- PnL calculated in: USDT
- Settlement: USDT
- Available for: BTC, ETH, and 200+ altcoins
- Most popular type
Advantages:
- Easy to calculate PnL (everything in USDT)
- No exposure to base coin volatility on margin
- Can use one stablecoin (USDT) for all contracts
Disadvantages:
- Need to hold USDT (a stablecoin, not a volatile asset)
COIN-Margined (COIN-M) Contracts
Also called "inverse contracts." Settled and margined in the base cryptocurrency.
Key features:
- Margin: The cryptocurrency itself (e.g., BTC for BTC contracts)
- PnL calculated in: The cryptocurrency
- Settlement: The cryptocurrency
- Available for: Major coins (BTC, ETH, BNB, etc.)
Advantages:
- Ideal for holders who want exposure to the coin
- No need to convert to USDT
- During bull markets, both your PnL and margin appreciate
Disadvantages:
- More complex PnL calculation
- Margin value fluctuates with coin price
- During bear markets, margin devalues while positions may also lose
Comparison Table
| Feature | USDT-M | COIN-M |
|---|---|---|
| Margin currency | USDT | Base coin (BTC, ETH) |
| PnL currency | USDT | Base coin |
| Complexity | Lower | Higher |
| Best for | Beginners, stablecoin holders | Long-term coin holders |
| Coin variety | 200+ | Major coins only |
| Risk profile | Simpler to manage | Compound risk (position + margin) |
Which Should You Choose?
Choose USDT-M if:
- You are a beginner
- You want simple PnL calculations
- You trade multiple different coins
- You prefer stable margin value
Choose COIN-M if:
- You are a long-term BTC/ETH holder
- You want to increase your coin holdings
- You are comfortable with compound risk
- You don't want to sell coins for USDT
How to Switch Between Them
On the futures page: tap the contract type selector at the top to switch between USD-M and COIN-M.
FAQ
Can I use both types simultaneously? Yes. They use separate wallets (USDT futures wallet and COIN-M wallet).
Which has more liquidity? USDT-M contracts generally have higher liquidity and tighter spreads.
Do fees differ? Base fee rates are the same. Actual costs may vary slightly due to liquidity differences.
Security Tips
- Beginners: start with USDT-M for simplicity
- Understand the risk profile of each type before committing
- COIN-M risk is compounded -- your margin loses value when the coin drops
- Use appropriate leverage regardless of contract type
- Always set stop-losses