Trading perpetual contracts has traditionally involved navigating separate order books for USD, USDC, and USDG margined contracts. This fragmentation often led to shallow liquidity and inconsistent pricing, resulting in wider spreads, higher slippage, and poor execution, especially for larger trades.

In response to these challenges, a unified market for perpetual contracts has been introduced. The new system consolidates the order books for USD, USDC, and USDG margined perpetuals into a single, deep pool of liquidity. This shared order book allows all USD-margined contracts to share the same order book, significantly enhancing liquidity.

Benefits of a Unified Market

The unified order book offers several advantages for traders. With deeper liquidity, traders can expect tighter spreads and reduced slippage, even on large trades. This improvement means that traders can use USD, USDC, or USDG as collateral while accessing the same market, enhancing the overall trading experience.

For traders managing high-volume trades or seeking better execution, this upgrade provides confidence in obtaining the best available price. Additionally, tighter spreads result in cost savings, as traders lose less money on entry and exit market or limit orders. The unified system also allows for faster decision-making, as there is no need to switch between different order books.

Implementation and Availability

The unified order book system is initially being rolled out with the SOLUSD Unified Margin Perpetual, one of the most liquid markets. This makes it an ideal choice for launching the unified perpetual order book offering. ETHUSD and BTCUSD Unified Margin contracts are expected to follow soon.

The new system is available in various regions with specific support for different currencies. Full support for USDC and USDG is available in Southeast Asia, including Thailand, Indonesia, Vietnam, the Philippines, and Korea. The global derivatives version for USD is available in The Bahamas and UAE, while a full USDC rollout is planned for Australia and Seychelles. However, certain markets, such as Singapore and the CIS, are excluded from this offering.

For more information, the announcement can be found here.

Why This Matters: Impact, Industry Trends & Expert Insights

The introduction of a unified order book for perpetual contracts aims to enhance liquidity by consolidating USD, USDC, and USDG margined contracts into a single pool. This development seeks to address issues of shallow liquidity and inconsistent pricing that have plagued traditional trading systems.

A CME Group report highlights a growing trend towards more capital-efficient and streamlined trading mechanisms in the crypto derivatives market. The introduction of unified order books aligns with this trend by enhancing liquidity and reducing trading costs, which is increasingly attracting institutional investors.

According to Shift Markets, experts agree that unified order books significantly improve market efficiency by consolidating liquidity, resulting in tighter spreads and better execution. This supports the impact of the new system, which aims to provide a more robust trading environment for both retail and institutional participants.

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