On this occasion, I would like to explain the difference between futures trading on Binance, where there are two options namely USDT-M Future and Coin-M Future. Hope this article will help newbies to profit from future trading with Binance.
Here are the differences between the two options in Binance Futures trading:
First, the difference between USDT-M and Coin-M Future is that USDT-M Future can only use capital in the form of USDT on the capital side. Users cannot use any capital other than USDT, whether BUSD or otherwise.
In Coin-M Future, the capital can use Coin Crypto Currency like BTC, ETH, EOS and others. There are at least 15 pure cryptocurrencies that can be used as capital to trade Coin-M Future.
The second difference between USDT-M Future and Coin-M Future is in the contract. With USDT-M Future with a perpetual contract, users can open long or short positions without restrictions as long as they can afford the financing fees and do not suffer a loss of capital.
Coin-M Future uses a quarterly contract with an expiration limit. In Coin M-Future, therefore, it is possible that you need to close a position at any time because the contract period has expired. Although Coin-M Future also offers open-ended contracts, quarterly contracts are preferred over the Coin-M Future option.
For the third difference, USDT-M Future has a finance charge which is reset every 8 hours. Although there is no charge for Coin-M Future, users do not have to pay any fees.
The fourth difference is the amount of fees. USDT-M Future charges a fee (creator: 0.02% and buyer: 0.04%). In Coin-M Future, the fees are the maker: 0.015% and the taker: 0.04%. This condition applies to VIP account category 0. As with previous VIP accounts, this can be seen in the conditions published by Binance.
Knowing about the different Binance Future trading options will make it easier for friends to decide which option to use to trade Binance Future.