One of the most popular Singapore-based cryptocurrency exchanges named ByBit launches two-way margin trading with Tether (USDT) perpetual contracts. This is the latest addition to the exchange’s suite of derivative products.
As we can see, the contracts will use the world’s largest stablecoin by market cap as the quote and the settlement currency for two-way trades. This will enable traders to hold both long and short positions at the same time and with different levels of leverage. All of the profits, losses and account balances will be denominated in USDT, making it both clearer and easier for traders to make investment decisions using this stablecoin.
ByBit launches two-way margin trading and as they said, using a stablecoin also removes the volatility brought by non-pegged cryptocurrencies. With this, the USDT perpetual contracts attempts to replicate the underlying spot markets using increased leverage.
Besides the Tether news, other contracts must see a trader holding account balances in multiple currencies because profits and losses are denominated in the currency that is underlying the contract. If they receive a margin call, it means that it is filling their margin using the relevant asset that underlies that contract.
The same USDT perpetuals will simplify the process for traders who want to make most of cross-margin to better use the unrealized profits on their accounts. This profit can be used as a top-up margin for other existing positions as well as a cross other contracts, as ByBit revealed.
This is not the only feature that ByBit launches now. Besides the Tether (USDT) trading addition, the crypto derivatives exchange has been popular in the cryptonews for its BTC/USD and ETH/USD pairs which can be traded with as much as 100x leverage. The matching engine that the exchange holds is capable of up to 100,000 TPS (transactions per second) as the exchange claims, which is both impressive and presents many novelties for traders interested in leveraged trading.
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