‼️What is COIN-M Future?‼️
COIN-M Futures (or Coin-Margined Futures) is a type of futures contract that is margined and settled in cryptocurrency, typically in Bitcoin (BTC) or another digital asset, rather than traditional fiat currency (like USD). This contrasts with USDT-M Futures, which are margined and settled in a stablecoin like USDT (Tether).
🔑Key Features of COIN-M Futures:
1. Settlement in Crypto: The margin for these futures contracts is held in a cryptocurrency, and any profits or losses are also settled in that cryptocurrency.
2. Leverage: Like traditional futures, COIN-M Futures allow traders to use leverage, enabling them to trade with a larger position size than their margin would normally allow.
3. Perpetual and Expiring Contracts: COIN-M Futures can be either perpetual contracts (without expiry) or traditional futures contracts that expire on a set date.
4. Risk: Since the contract is denominated in a volatile asset like Bitcoin, the risk can be higher compared to USD-margined contracts, as both the position size and margin value fluctuate with the price of the crypto.
These products are often offered by major cryptocurrency exchanges like Binance, Bybit, and others.