Do You Still Need USDT to Trade Futures? INR vs USDT vs Coin-M Explained

For years, traders believed they needed USDT to trade futures. That was largely true when most exchanges only supported USDT-margined contracts. But the market has evolved. Today, traders have multiple margin options. 

So, do you still need USDT to trade futures? The short answer is no. The complete answer depends on how you trade, fund, and manage risk.

Quick Answer: Is USDT to Trade Futures Still Mandatory?

No, you do not need USDT to trade futures anymore.

You can now choose between:

• INR-margined futures
• USDT-margined futures
• Coin-margined futures (Coin-M)
• Sometimes other stablecoins like USDC

Here is a simplified comparison:

Futures Type	Margin Currency	P&L Currency	Best For
INR-Margined	INR	INR	INR-first traders
USDT-Margined	USDT	USDT	Global active traders
Coin-Margined	BTC/ETH	Coin	Long-term holders

Earlier, traders assumed they needed USDT to trade futures because alternatives were limited. That assumption no longer holds true.

What Does It Mean to Use USDT to Trade Futures?

To understand whether you need USDT to trade futures, you must first understand margin.

In futures trading, margin is the collateral you deposit to open a leveraged position. You do not pay the full contract value. You only deposit a portion.

If you use USDT to trade futures:

• Your margin is in USDT
• Your profits and losses are calculated in USDT
• Your liquidation price is displayed in USDT

The contract mechanics remain the same whether you use USDT to trade futures or another margin type. The difference lies in accounting and collateral behavior.

Understanding INR-Margined Futures

INR-margined futures allow you to trade without needing USDT to trade futures.

In this structure:

• Margin is deposited in INR
• P&L is displayed in INR
• Liquidation levels are shown in INR
  

There is no INR-to-USDT conversion step.

Why This Changes the Equation

When traders previously needed USDT to trade futures, the process usually involved:

1. Deposit INR
2. Convert INR to USDT
3. Open futures position

Now, with INR margin, the process becomes:

1. Deposit INR
2. Trade futures directly

This removes an extra operational layer.

Who Benefits from INR Futures?

INR-margined futures are suitable for:

• Traders who earn and spend in INR
• Beginners who want simpler accounting
• Users who want to avoid stablecoin exposure

If your financial system runs in INR, you may not need USDT to trade futures at all.

Understanding USDT-Margined Futures

USDT-margined futures are the format that made traders believe they always needed USDT to trade futures.

In this model:

• Margin is held in USDT
• P&L is calculated in USDT
• Liquidation is calculated in USDT

USDT is designed to track the US dollar, which provides relative stability compared to crypto assets.

Why USDT Became the Default

Global exchanges adopted USDT early because:

• It standardizes USD-based accounting
• It enables cross-border trading
• It reduces collateral volatility compared to Coin-M

This global adoption led traders to assume they must use USDT to trade futures. In reality, it was simply the most available format.

Who Should Still Use USDT Futures?

Using USDT to trade futures may still make sense if:

• You trade across multiple international exchanges
• You evaluate performance in USD terms
• You use algorithmic strategies across assets

USDT remains a practical option, but it is no longer the only one.

What Are Coin-Margined Futures?

Coin-margined futures offer another alternative to using USDT to trade futures.

In Coin-M contracts:

• Margin is deposited in BTC, ETH, or another crypto
• P&L is paid in the same coin
• Collateral value fluctuates with market price

The Double Volatility Effect

If you avoid using USDT to trade futures and instead choose Coin-M:

• Your position value changes
• Your collateral value also changes

If the market drops sharply, your margin loses value, while your position may also incur losses.

This is called the double volatility effect.

Who Should Consider Coin-M?

Coin-M futures are more suitable for:

• Long-term holders
• Traders who want to accumulate more crypto
• Users are comfortable managing collateral volatility

Beginners may find stable margin types easier to manage.

INR vs USDT vs Coin-M: A Clear Comparison

Here is a structured comparison to decide whether you truly need USDT to trade futures.

Feature	INR-Margined	USDT-Margined	Coin-Margined
Margin Currency	INR	USDT	BTC/ETH
P&L Currency	INR	USDT	Coin
Conversion Required	No	Yes (if starting in INR)	Usually
Collateral Stability	High	High	Low
Global Standard	Growing	High	Moderate
Ideal For	INR-based traders	Global traders	Long-term holders

The need for USDT to trade futures depends entirely on your funding currency and trading goals.

Which Is Better: Do You Really Need USDT to Trade Futures?

There is no universal answer. Instead, choose based on your situation.

Choose INR-Margined Futures If:

• You deposit and withdraw in INR
• You want P&L clarity in INR
• You prefer avoiding extra conversions
• You want simpler budgeting

In this case, you likely do not need USDT to trade futures.

Choose USDT-Margined Futures If:

• You operate across exchanges
• You compare performance in USD
• You frequently switch trading pairs

In such cases, using USDT to trade futures may remain convenient.

Choose Coin-M Futures If:

• You already hold crypto
• You want to maintain coin exposure
• You understand margin volatility

Cost Considerations: Conversion Friction Matters

One key reason traders reconsider using USDT to trade futures is cost friction.

INR to USDT Conversion Layer

If you deposit INR and then use USDT to trade futures, you often:

• Pay conversion spread
• Pay trading fees
• Face slippage during volatility

These costs may appear small individually, but over time they accumulate.

With INR margin, that conversion layer disappears.

Stablecoin Risk Perspective

Using USDT to trade futures introduces stablecoin exposure. While USDT is widely used and liquid, it remains part of the crypto ecosystem.

INR margin avoids that dependency.

The risk is not extreme, but it is structurally different.

Risk Differences Across Margin Types

Regardless of whether you use USDT to trade futures or another margin type, leverage risk remains.

Liquidation Mechanics

All futures contracts involve:

• Mark price
• Maintenance margin
• Liquidation thresholds

If your margin falls below required levels, liquidation occurs.

With Coin-M:

• Collateral value can fall alongside market price

With INR or USDT:

• Collateral is relatively stable compared to crypto assets

The decision is not about safety versus danger. It is about collateral behavior.

Funding Rates and Leverage

Funding rates apply to perpetual futures across margin types.

Leverage multiplies gains and losses equally.

Using USDT to trade futures does not reduce leverage risk. It only changes the accounting currency.

How to Trade INR-Margined Futures on the Mudrex App

If you have decided that you do not need USDT to trade futures, the Mudrex app allows you to trade directly using INR through a dedicated INR wallet system.

Mudrex operates with two separate wallets:

• An INR wallet
• A USDT wallet

These wallets are independent to ensure clear fund segregation and transparent accounting.

It is important to note that you cannot move funds directly between your INR and USDT wallets inside the app. Each wallet supports its respective futures contracts.

Here is how to start trading INR-margined futures on Mudrex.

Step 1: Fund Your INR Wallet

Open the Mudrex app and deposit funds into your INR wallet.

You can fund it directly using:

• UPI
• Bank transfer

Once credited, your INR balance becomes available for INR futures trading.

Step 2: Go to the Futures Section

Tap the Futures icon on the bottom navigation bar.

This takes you to the dedicated futures trading interface.

Step 3: Switch to INR Mode Using the Currency Toggle

At the top left of the Futures screen, you will see a currency toggle.

• Tap to switch between USDT ($) and INR (₹)
• Select INR (₹) to trade INR-margined futures

The switch is instant and clearly visible, helping you avoid confusion between wallet types.

Step 4: Select Your Futures Contract

Once in INR mode, choose your preferred contract.

Review:

• Mark price
• Funding rate
• 24-hour price movement
• Available leverage

All values and calculations will now be displayed in INR.

Step 5: Choose Margin Mode

You can select:

• Isolated Margin – Limits risk to the specific position
• Cross Margin – Uses your available INR wallet balance

Isolated margin is generally preferred by traders who want position-level risk control.

Step 6: Set Leverage Carefully

Adjust your leverage before placing the trade.

Higher leverage increases both potential profit and liquidation risk. Even though you are no longer using USDT to trade futures, leverage mechanics remain identical.

The app clearly displays your estimated liquidation price before order confirmation.

Step 7: Place Your Order

Choose:

• Market or limit order
• Position size
• Stop Loss
• Take Profit

Mudrex encourages risk-managed trading by making SL and TP settings easily accessible during order placement.

Step 8: Monitor and Close Your Position

Once your trade is active, you can monitor:

• Unrealized P&L in INR
• Margin used
• Liquidation level
• Funding charges

When you close the position:

• Profits or losses are credited directly to your INR wallet
• You can withdraw INR without converting from USDT

For clarity, the Portfolio screen provides separate tabs for INR and USDT holdings. This ensures you always know which wallet your funds belong to.

Why Many Traders Are Moving Beyond USDT to Trade Futures

As platforms evolve, traders are no longer locked into one margin format.

Key reasons include:

• Reduced conversion friction
• Simplified accounting
• Faster margin management
• Local currency integration

This does not mean USDT-margined futures are obsolete. It simply means traders now have flexibility.

If you were using USDT to trade futures only because you believed it was mandatory, that assumption may need updating.

Conclusion

So, do you still need USDT to trade futures?

No. What was once a structural requirement is now simply one option. INR-margined futures have removed the mandatory conversion step that previously pushed traders to use USDT to trade futures, even when their deposits and withdrawals were in INR.

If your financial life runs in INR, keeping your margin, P&L, and withdrawals in INR reduces friction and simplifies decision-making. The mechanics of leverage and liquidation remain the same. What changes is clarity and convenience.

If you were using USDT to trade futures out of habit, it may be time to switch to a structure that fits your currency reality.

Start trading INR-margined futures on the Mudrex app today. Fund your INR wallet, switch to INR mode, and trade without converting to USDT.

To deepen your understanding of leverage and risk management, explore Mudrex Learn and subscribe to the Mudrex YouTube channel for structured futures education.

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