Bybit offers a linear perpetual contract in USDT, allowing traders to place long or short contracts using USDT as the margin with no expiration date.
Bybit USDT Perpetual Contracts are settled in USDT. All margin, profit and loss calculations are denominated in USDT. Taking BTCUSDT as an example, if a trader holds a 1 BTC contract, and the price of BTC increases by $100, the trader's profit will be 100 USDT.
USDT Perpetual Contract Specifications
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For more contract details about the Bybit USDT Perpetual Contract, please visit here.
The difference between USDT Perpetual Contract and Inverse Perpetual Contract
A Linear Perpetual Contract settled in USDT is different from the Inverse Perpetual Contract in the calculation of margin, Profit and Loss (P&L) and risk exposure.
Margin and P&L Calculation
Margin and P&L calculations for Linear Perpetual Contracts are more straightforward than Inverse Perpetual Contracts. The Linear Perpetual Contract uses USDT as quoted currency and also collateral, producing a payoff in USDT. The Inverse Perpetual Contract uses BTC or other coins as collateral, producing a payoff in BTC or other corresponding coins.
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Risk Exposure
Inverse Perpetual Contracts are traded and settled in the underlying asset. Traders are naturally exposed to the market risk of the collateral itself, even if they don't hold any positions.
On the other hand, USDT Perpetual Contracts are settled in USDT. You don't have to worry about the market risk of collaterals such as BTC. However, stablecoins may not be 100% stable and USDT is not entirely risk-free. Please manage your own trading risks.