Underlying Currency | Quote Currency | Margin Currency

Note: Compare and understand the differences between USDⓈ-margined futures contracts and coin-margined futures contracts.

Three currencies form a contract

The most important parameters of the contract are the following three currencies, and various contracts are composed of these three currencies:

	Underlying Currency	Quote Currency	Margin Currency
USDⓈ-Margined Futures Contract	BTC	USDT、BUSD、USDC	Must be consistent with the quote currency
Coin-Margined Futures Contract	BTC	USD（always USD）	Must be consistent with the underlying currency
Hybrid Contract	BTC	USDT、BUSD、USDC	Any currency

Underlying Currency / Quote Currency

The underlying currency/quote currency forms a currency pair, and the exchange rate of the currency pair is the price, which is the target of the contract transaction.

The most critical parameter of a contract is the 'underlying currency pair', which determines whether the transaction object is the price of BTC/USDT or the price of ETH/USDT.

Margin Currency

After determining what to trade (the underlying currency pair), we need chips, which are the margin currency.

USDⓈ-margined futures contract is a contract that uses stablecoins as a bargaining chip. The margin currency must be consistent with the quote currency. If not, it is a hybrid contract.

A coin-margined features contract is a contract that uses the underlying currency as a bargaining chip, and the margin currency must be consistent with the underlying currency.

Underlying currency pair | Index price

Whether it is a USDⓈ-margined or a coin-margined futures contract, the index price must be consistent with the underlying currency pair, because the meaning the index price is the market price of the underlying currency pair.

Index price = underlying currency pair = underlying currency/quote currency

	Underlying Currency Pair	Index Price
USDⓈ-Margined futures contract	BTC / USDT	BTC / USDT
Coin-Margined futures contract	BTC / USD	BTC / USD