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What Is an ‘Inverse’ Perpetual Contract?

An inverse perpetual contract, also known as a coin-margined contract, uses the base cryptocurrency (e.g. BTC) as collateral and for profit/loss calculation.

For example, a BTC/USD contract is margined and settled in BTC. This means the collateral value itself is volatile.

This is in contrast to a linear or USDT-margined contract, where a stablecoin is used for collateral.

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