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Coin Margined Contract

A coin margined contract uses a cryptocurrency such as BTC as margin and may settle profits and losses in that cryptocurrency. The exact mechanics depend on the contract and trading platform.

Why it matters to you

With coin margined contracts, the value of the collateral itself can rise or fall while the derivative position is open. This means traders need to consider both the performance of the position and changes in the fiat value of the cryptocurrency being used as collateral.

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