Crypto trading · Pro
Inverse contract
Also searched as: coin-margined inverse
What does Inverse contract mean?
An inverse contract commonly uses a cryptocurrency for margin and settlement while its contract value is quoted in another unit, such as US dollars. Its coin-denominated payoff uses reciprocal prices.
Example
A Bitcoin-margined inverse position realizes its profit or loss in Bitcoin rather than USDT.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
The collateral's cash value changes alongside the derivative exposure. Do not apply a linear-contract profit formula without checking specifications.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.