Introduction to Coin-M Futures in Bitget Unified Trading Account

[Estimated Reading Time: 3 mins]

Coin-M Futures are derivative products that use the underlying cryptocurrency (such as BTC or ETH) as both the margin and settlement currency. They typically adopt an inverse futures structure: the notional value is quoted in USD, but PnL, transaction fees, and funding fees are settled in the underlying coin.

Key features:

• Pricing unit: USD (the notional value and quotes are typically denominated in USD)

• Common trading pairs: BTCUSD CM (settled in BTC), ETHUSD CM (settled in ETH)

• Settlement: All profits and losses are settled in the underlying currency (e.g., profits from a long BTCUSD position are settled in BTC).

• Futures types: Perpetual futures (no expiry) and delivery futures (with a fixed delivery date)

Coin-M Futures vs USDT-M Futures

Futures structure and PnL calculation (Key differences)

1) USDT-M Futures: Linear futures

• Position value = quantity × price

• PnL (USDT) = (exit price − entry price) × quantity × (+ for long positions, − for short positions)

• Transaction fees (USDT) = filled quantity × filled price × transaction fee rate

• Funding fee (USDT) = position size × mark price × funding rate

Characteristic: PnL moves linearly with price, making it intuitive and easy to understand.

2) Coin-M Futures: Inverse futures

• The futures notional value is usually fixed in USD (or calculated based on a fixed USD face value per futures contract)

• PnL (coin) = futures notional value (USD) × (1/entry price − 1/exit price) × (+ for long positions, − for short positions)

• Transaction fees (coin) = futures notional value (USD) ÷ filled price × transaction fee rate

• Funding fee (coin) = position notional value (USD) ÷ mark price × funding rate

Characteristic: PnL is non-linear. As prices rise, the same USD notional value converts into fewer coins. This results in diminishing coin gains per additional price increase, and increasing coin losses per additional price decrease.

Examples:

1) USDT-M Futures: A long position of 1 BTC is opened on BTCUSDT at an entry price of 100,000 and an exit price of 100,100.

• PnL = 1 × (100,100 − 100,000) = 100 USDT

2) Coin-M Futures: Assume a long position on BTCUSD CM with a notional value of 100,000 USD, an entry price of 100,000, and an exit price of 100,100.

• PnL (BTC) = 100,000 × (1/100,000 − 1/100,100) ≈ 0.0009999 BTC

Note: The above examples are for illustrative purposes only. Actual PnL may vary due to factors such as trading fees, funding fees, etc.

FAQs

1. What are Coin-M Futures?

Coin-M Futures are derivative products that use the underlying cryptocurrency, such as BTC or ETH, as both the margin and settlement currency.

2. What is the main difference between Coin-M Futures and USDT-M Futures?

Coin-M Futures use the underlying cryptocurrency for margin and settlement, while USDT-M Futures use USDT for margin, settlement, and PnL denomination.

3. What margin modes are available for each futures type?

Coin-M Futures and USDT-M Futures both support cross margin and isolated margin.

4. How is PnL calculated in Coin-M Futures?

Coin-M Futures use an inverse futures structure, where PnL is calculated in the underlying coin based on a fixed USD notional value and is non-linear.