USDT perpetual contract uses a is a type of linear contract. Here the margin being used for a linear contract is USDT. On the other hand, an inverse contract means if a trader proceeds to trade EOS/ETH/XRP/BTC contract, the underlying Cryptocurrency say BTC has to be used as the margin to trade the respective contract. In contrast to Inverse perpetual contract, USDT perpetual contract consists of the following:

Inverse perpetual contract is traded based on the underlying Cryptocurrency. Traders need to hold a much volatile BTC/ETH/EOS/XRP as margin. Hence, even if the traders proceed not to trade, holding the Cryptocurrency itself has its risks. On the other hand, USDT perpetual contract uses a stable coin as a margin, and thus, traders do not have to hedge their position to avoid the risk of holding the Cryptocurrency.

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