All termsPerpetual Futures FundamentalsWorth knowing
Inverse Contract
An inverse contract is a derivative structure in which the contract's value, margin or settlement mechanics are denominated differently from a conventional linear contract and commonly involve the underlying cryptocurrency itself. The exact calculation depends on the exchange and contract specification.
Why it matters to you
Inverse contracts can make profit, loss and collateral behavior less intuitive for beginners. For example, a BTC margined inverse contract can expose the trader both to the leveraged trade and to changes in the value of the BTC being used as collateral. Understanding the contract specification before trading is essential.
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