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Linear Contract
A linear contract is a derivative contract where profit and loss generally change in a straightforward relationship with movements in the underlying price and contract size. In crypto perpetual markets, linear contracts are commonly margined and settled using a stablecoin or other quote currency.
Why it matters to you
Linear contracts are often easier for beginners to understand because the collateral and profit or loss can be denominated in a familiar unit such as USDT or USDC. A $100 gain can therefore remain approximately $100 of account value rather than simultaneously changing because the collateral itself is BTC or another volatile asset.
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