How SOL Inverse Futures and Options Use SOL as Collateral
Summary
The article explains Deribit’s SOL inverse futures and options, which let traders post SOL as collateral while taking positions tied to SOL’s dollar price. Profit and loss is calculated in dollars and then settled in SOL, unlike USDC linear perpetuals that use USDC as collateral. The piece contrasts these contract types and outlines how traders can deposit SOL to fund an account.
It identifies potential uses for traders who already hold SOL, receive income in SOL, want to avoid stablecoin exposure, or prefer to remain long SOL when no derivatives positions are open. It also notes that inverse futures can be used to hedge the dollar value of an account while accessing dated futures and options. The article gives no performance data or detailed contract mechanics, and directs readers elsewhere for explanations of inverse payoff calculations and option differences. Its operational deposit instructions are exchange-specific; deposits must use the supported currency and blockchain.
Key ideas
- SOL inverse contracts use SOL as collateral and settle profit or loss in SOL after dollar-based calculation.
- These products let SOL holders trade futures and options without posting USDC collateral.
- Inverse exposure may suit traders with SOL-denominated income or a preference to retain underlying exposure.
- A short inverse futures position can hedge the dollar value of an account.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.