Direct answer
USDT-margined contracts are priced and settled in USDT or USDC, so profit is paid in the stablecoin; coin-margined contracts settle in the coin, such as BTC, and each contract has a fixed US dollar face value (100 USD per Binance BTC contract). The same 10,000 USD BTC long rising from 50,000 to 52,000 makes 400 USDT on a USDT-margined contract and about 0.007692 BTC on a coin-margined one — but coin-margined collateral is itself BTC, so it loses value when the price falls.
The difference in one table
Binance offers USDⓈ-margined (USDⓈ-M) and coin-margined (COIN-M) futures, and OKX likewise divides its contracts into USDT-margined and crypto-margined. Both kinds allow longs and shorts and both offer isolated and cross margin; what differs is the asset used for margin and settlement.
This table sets the unit for every calculation that follows: everything on a USDT-margined contract is in the stablecoin, everything on a coin-margined contract is in the coin, so convert to one unit before comparing them.
| Item | USDT-margined | Coin-margined |
|---|---|---|
| Margin and settlement | Stablecoins such as USDT and USDC | The underlying coin, such as BTC or ETH |
| Contract size | Counted in the coin, such as 0.2 BTC | A fixed USD face value per contract (Binance: 100 USD for BTC, 10 USD for ETH) |
| Profit and loss in | Stablecoin | The coin |
| Binance expiries | Perpetual, quarterly | Perpetual, quarterly, bi-quarterly |
| OKX price index | USDT index | USD index |
USDT-margined: linear, profit counted in USDT
Profit on a USDT-margined contract is linear in price: a long's PnL = (exit − entry) × quantity. Buying 0.2 BTC at 50,000 USDT makes 400 USDT at 52,000 USDT and loses 400 USDT at 48,000 USDT.
Because margin, fees and profit are all in USDT, one pool of margin can trade contracts on different coins and the accounts reconcile easily — which is why most people start with USDT-margined contracts.
Coin-margined: inverse, profit counted in the coin
Each coin-margined contract represents a fixed US dollar face value, and profit is counted in the coin: a long's PnL = contracts × face value × (1 ÷ entry − 1 ÷ exit). Binance's margin documentation computes a coin-margined position's PnL with the same '1 ÷ entry − 1 ÷ mark price' term.
The same 10,000 USD long (100 BTC contracts) rising from 50,000 to 52,000 makes about 0.007692 BTC, about 400 USD at 52,000. The dollar amount matches the USDT-margined contract, but what you receive is BTC.
The coin-margined long's double exposure
A coin-margined long uses BTC as collateral and is also long BTC: when the price falls the position loses, and the collateral itself loses dollar value at the same time, so liquidation comes sooner than on a USDT-margined contract under the same conditions.
The reverse is why coin-margined contracts are used to hedge: someone already holding BTC who opens a coin-margined short with that BTC as margin sees the short's gains offset the fall in their coins as the price drops, roughly locking in the dollar value.
How fees and funding are denominated
Fees on both kinds are position value × fee rate, only in a different unit: Binance explains that a USDT-margined position's value is quantity × execution price, in USDT, while a coin-margined position's value is contracts × face value ÷ execution price, in the coin. Funding follows the settlement asset in the same way.
So convert to one unit before comparing the cost of the two. DZPTO's calculators currently handle USDT-margined contracts only.
How to choose
If you keep your accounts in stablecoins, trade several coins and want profit in the unit you think in, choose USDT-margined. If you hold a coin long term, want to use it as margin or want to hedge your holdings, coin-margined is the more natural fit.
Beginners do better starting with USDT-margined contracts: profit and margin share one unit, so a sharp fall does not hit both the collateral's value and the position at once.
Official sources
Contract types, expiries and face values come from Binance's USDⓈ-M and COIN-M explainer; position value and fees from Binance's fee documentation; the '1 ÷ entry − 1 ÷ mark price' term in coin-margined PnL from Binance's margin adjustment page; and OKX's price indices from its perpetual futures guide. Recorded 2026-10-07.
- Binance: What Are USDⓈ-Margined Futures and COIN-Margined Futures?
- Binance: Futures Fee Structure & Fee Calculations
- Binance: How to Adjust Margin Balance in Cross/Isolated Margin Mode
- OKX: How do I trade perpetual futures on OKX?
- OKX: Perpetual Futures Guide
Keep reading
Frequently asked questions
Which is better, USDT-margined or coin-margined?
Neither in absolute terms; it depends on the unit you count in and your aim. For profit in stablecoins across several coins, USDT-margined is simpler; for long-term holders who want their coins as margin or a hedge, coin-margined fits better.
Can DZPTO calculate a coin-margined liquidation price?
Not yet. Coin-margined contracts are inverse, and their liquidation formula differs from the linear one, so rely on the exchange's estimate; DZPTO's calculators cover linear USDT-margined contracts.
Are USDT- and USDC-margined contracts the same?
They are calculated the same way, as linear contracts priced in a stablecoin, but they are separate contracts whose fees, funding and liquidity can differ, so check each before trading.
Why do holders hedge with coin-margined shorts?
Because the margin and the holding are the same asset. With a coin-margined short of equal size, the dollar gains and losses of the coins and the short roughly cancel as the price moves, without first converting the coins into stablecoins.