USDT Standard Contract Trading

 I-               What is a USDT standard perpetual contract ?

USDT perpetual contracts are digital tokenized securities that look like cash but with a fixed price.

Perpetual contracts are different from standard, non-perpetual cryptocurrency contracts in that they follow a specific formula and last for a specified period.

Perpetual contracts can only be bought and sold at a particular price, allowing traders to lock in profits or limit losses.

Additionally, perpetual contracts are popular with traders who want to minimize risk and maximize profit.

These types of contracts are also called fixed price perpetuals or standard USDT.

A typical USDT perpetual contract has an expiration date and is bought and sold daily at a fixed price.

For example, a trader could buy 10 BTC perpetual contracts for $10,000 per contract with an expiration date in six months.

After the expiration date, the trader would lose all the value he put into the contract unless he sold his holdings before that date.

Since the holding period is based on the price at which they bought their contract, selling near the end of the term would generate maximum gains while limiting losses.

In contrast, USDT perpetual contracts are popular with traders who want to minimize risk and maximize profit.

Since there is no market volatility when trading USDT perpetuals, profits can be substantial, especially when selling towards the end of their duration versus buying towards the beginning of their duration. duration.

Some traders use their regular bank account to buy USDT perpetuals by paying additional fees for faster transfers or opening multiple accounts for different cryptocurrencies.

Then they transfer their funds to the USDT perpetual contracts account where they hold all of their purchased contracts in a single wallet address, so they can easily sell or buy as needed.

This method limits risk since all funds are immediately transferred to the contract wallet upon purchase and cannot be lost in the event of transfer delays or payment errors from banks or payment processors.

Unlike spot cryptocurrency transactions where the value is always converted into local currency at the present moment, USDT perpetual contracts allow traders to turn dollars into tokens whenever they want.

This feature makes USDT perpetuals similar to spot cryptocurrency transactions in that both allow users to convert local currency to crypto whenever they have funds available without incurring transaction fees or commissions.

However, while dollar-convertible cryptocurrencies trade like conventional securities on a few cryptocurrency exchanges like Coinbase, USDT perpetuals do not trade on traditional exchanges like this because the tokens cannot be easily liquidated, via fiat currency transfers or banks without incurring a large loss due to volatility between dollar and token prices.

Cryptocurrency perpetual contracts follow a fixed formula that determines the amount of money that can be exchanged over an agreed period of time, much like money that can only be changed through transaction fees with local banks up to upon its expiration at the end of the year, unless repaid by its holder through annual fees paid in coins using precious metals such as gold or silver coins as security for payments taxes of said year (the basis of our current coinage system).

Although not as well known as other types of cryptocurrency investments such as ICOs (Initial Coin Offerings), perpetuals have proven to be safe investments suitable for both novice and experienced investors who want returns maximum without risking capital unnecessarily.

 

II-            How to trade USDT standard perpetual contracts ?

Many users are interested in trading USDT standard perpetual contracts, which are contracts that allow you to buy or sell USDT at a fixed exchange rate.

Let's see how you can trade standard USDT perpetual contracts and how it works in practice.

USDT is a stablecoin with a fixed exchange rate;

It is always equal to one US dollar.

An exchange that supports USDT trading is where you can find and trade USDT.

To open an account on the exchange websites, you must first verify your identity by providing your name and email address via an online form or scanned documents such as a driver's license or passport.

After verifying your identity, you will be able to trade standard USDT perpetual contracts on the platform at the current market rate.

You can use your Tether account to buy other cryptocurrencies such as Bitcoin or Ethereum before exchanging them for real US dollars using an exchange like « Huobi ».

Keep in mind that not all exchanges support direct dollar transfers from cryptocurrency wallets, so be sure to research which one you will be using before opening a USDT account on this exchange form.

Trading USDT standard perpetual contracts has both advantages and disadvantages over buying and selling regular cryptocurrencies, as it requires proprietary knowledge of the cryptocurrency market and actual US dollars in order to simultaneously profit from the price fluctuations of crypto and fiat currencies.

However, if you understand how it works in practice, trading these contracts can be profitable if done correctly.

A solid understanding of technical aspects such as the price trends of different cryptocurrencies against real money will help you maximize profits when trading these contracts by taking advantage of favorable periods for cryptocurrency markets and fiat currency price.

 

III-         How to trade and manage contract risks on « huobi »?

Contract trading is the practice of trading in the cryptocurrency market without owning the underlying asset.

The most popular cryptocurrency exchange for contract transactions is «Huobi».

Since «Huobi» is based in Singapore, they offer fully guaranteed contracts with US dollars.

Unlike other cryptocurrency exchanges, «Huobi» offers its clients a choice of trading strategies to mitigate risk.

Many traders use «Huobi» as a reference platform for trading contracts.

In this article, we will share some essential knowledge on contract risks and how to effectively manage your position size at all times.

Initially, you need to decide whether you want to trade on margin or not.

Margin trading creates more opportunities for loss due to the leverage feature and lack of control over your capital.

However, if you have a high-risk tolerance and have a keen interest in short-term trading strategies, margin trading may be beneficial for you.

To protect your capital from contract losses, you should always keep your position size below the desired profit threshold.

At the same time, limit orders should be placed at a reasonable price so that your order is not executed too low or too high relative to the market price at that time.

Contract losses are inevitable in contract trading, as there is no way to recover lost funds without selling your positions at a loss.

As mentioned earlier, limit orders should be placed at a reasonable price so that your order is not executed too low or too high relative to the market price at that time.

If the market drops significantly after placing an order that is too high, sell your position before it reaches a loss threshold. On the other hand, if an upward movement occurs after placing an order that is too low, then wait until it reaches an acceptable profit threshold before reselling it at a profit.

In addition to limiting your losses with conservative limit order pricing, you can also take advantage of stop-losses and take profits where appropriate to further limit losses while generating profits above your profit threshold.

All strategies are designed to help traders make profits without incurring excessive losses along the way!

To maximize profits while minimizing losses, follow Huobi's recommended strategies when trading these contracts!

However, it requires discipline and caution in risk management so as not to lose all your capital earned at the start of this strategy!

 

IV-          How to calculate the profit and loss and equity of a USDT standard trading account?

Cryptocurrencies can be traded in a secure environment and at the same time easily converted to and from traditional currency.

One of the most famous digital currencies is Bitcoin, but there are many other cryptocurrencies that can also be traded.

USDT is one of the most common cryptocurrencies, which is based on the US dollar.

Although it is pegged to the dollar, traders can earn good returns trading it.

USDT and USD are essentially the same thing. Since they both represent US dollars, traders can easily make a profit by selling their USDT and buying US dollars.

The value of USDT can never exceed the value of its base currency since it is pegged to the dollar.

However, this does not mean that trading this cryptocurrency is always profitable.

Since USDT is pegged to the dollar, its value tends to diverge from that of traditional currency when investors start selling their dollars in droves.

This happened in the second half of 2017 when many financial markets were in turmoil due to Brexit and the Trump presidency.

As a result, people started selling their traditional silver for fear of losing all their money in the event of another financial downturn.

This has created a shortage of dollars against other currencies, which has made it difficult to raise exchange rates between USDT and traditional currency.

At this point, USDT trading became unprofitable as people stopped believing that it would have a positive return like traditional money in the event of a panic in the traditional financial markets.

While it's hard to predict what will happen with traditional money right now, it looks like investors have regained some confidence after Trump's tax reforms drove stock prices higher for companies to which he is associated.

Based on this information, it makes sense that trading USDT can sometimes be profitable since this cryptocurrency and traditional money represent US dollars respectively.

Investors tend to lose confidence in cryptocurrencies when traditional money declines, as USDT is essentially digital versions of the US dollar - backed by real tangible assets, which tend to complement traditional money rather than to simply replace it.

By pegging its cryptocurrency to a real currency, the dollar, its creator was able to create a stable cryptocurrency that could complement real money instead of competing with it.

As a conclusion, if investors regain some confidence in cryptocurrencies again, trading USDT could also become more profitable again!

To register on «Huobi», please visit the link below:

https://bit.ly/3AjYpMy

 

Sources of additional information:

https://www.huobi.com/support/en-us/list/900000256166