How USDT-M Commodity Perpetual Futures Work and Manage Risk
Summary
This glossary explains USDT-margined commodity perpetual futures, which have no expiry and settle profit and loss in USDT. It defines core concepts such as long and short positions, leverage, margin, mark and index prices, funding payments, liquidation, and market and limit orders. The examples refer to crude oil and natural gas contracts, while the product description says funding helps keep perpetual prices near a spot or index reference.
The risk guidance recommends small positions, low leverage, isolated margin, and take-profit and stop-loss orders for beginners. It identifies mark price, liquidation price, funding rate, and maintenance margin as metrics to monitor, and contrasts isolated margin with cross margin, which shares account collateral and risk across positions. This is an educational product overview, not a trading system or independent evaluation. Contract terms, leverage limits, funding intervals, price sources, fees, and liquidation rules can vary by market or platform and should be verified before trading; leverage can magnify losses.
Key ideas
- USDT-M commodity perpetuals use USDT for margin and profit-and-loss settlement and have no expiry.
- Funding payments help align perpetual contract prices with a spot or index reference.
- Mark price is used to calculate unrealized profit and loss and can trigger liquidation.
- Cross margin shares collateral and risk across positions, while isolated margin allocates collateral by position.
- The glossary recommends low leverage, small positions, and monitoring liquidation and funding metrics.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.