Enter MEXC Global (mexc.com) through the webpage and click on “Derivatives” and "Futures" to enter the Futures page.
2. Futures page
Please browse the MEXC Futures page carefully to know the contents of each section of the information, including contract information, trading pairs, price information, positions and order information, depth, wallet, etc. At the same time, contract information is at the lower left of the market information section, and enumerate the problems and index information that you often have in the transaction, so that you can check it at any time.
3a. MEXC Futures USDT-margined contracts and coin-margined contracts. USDT contracts are perpetual contracts with USDT as margin, and coin-margined contracts are perpetual contracts with corresponding digital assets as margin. Users can choose different trading pairs to trade according to their needs.
3b. Asset Transfer
Traders shall transfer assets from spot account to the Futures account before trading futures.
3.3. Place order. Enter “price and Quantity” and select leverage, then click “Buy Long or Close Short”
Different trading pairs have different leverage and MEXC supports up to 125x. The leverage is determined by the initial margin and maintenance margin, which determines the minimal amount of the coin for positions opening and holding. Users can check the minimal initial margin and maintenance margin of each product.
*At present, leverage change is available on both long and short positions. Users can change any leverage on cross mode.
How to change the leverage?
For example the long position is 20x, and the short position is 100x. To decrease the risk of long and short hedging, the user plans to adjust the leverage from 100x to 20x.
Please click “Short 100X” and adjust the leverage to the planned 20x, and then click “OK”. Then the leverage of the position is 20x.
5.Cross margin/Isolated Margin
Cross margin refers to the use of all available balance in the account as margin to avoid liquidation. Any other position that has achieved profitability can help increase the margin on the loss position.
The cross margin includes the initial position margin and available balance. Using the full position mode, the available balance of the user's loss under the cross positions mode will not be used as the margin for other cross positions. At present, MEXC supports to change the positions from isolated to cross mode, and cross mode to isolate mode is not available.
The maximum loss of isolated position is limited to the initial margin of the position and the increased margin used by the position. If a position gets liquidated, the user will only lose the isolated position margin for each position, and the available balance of the account will not be added. Margin for isolating a certain position, you can limit the loss in this position to the initial margin when your short-term speculative trading strategy fails.
Users can manually add a margin for isolated positions to optimize the liquidation price. After a margin is increased for a position, if the user adjusts the leverage, the previous margin will be reset.
*The system default is isolated.
The limit order is the highest or lowest price that the trader uses to specify the sale, and the trader reduces the transaction cost through the limit order. However, if the order price is far from the current market price, the order may not be closed. In the limit order, the user needs to enter the limited position price and the number of positions.
The market price order refers to the immediate transaction in the current market, and this type is selected when the trader needs an emergency transaction order. Please pay attention to the list of delegates when selecting this type, otherwise a huge market price order may “break through the list”, resulting in market impact costs.
The plan order is a conditional order. When the price fluctuation reaches the specified trigger price, the trade operation will be performed at the specified price. The trader can set the order through this type to take profit or stop loss on the held position. It is also possible to set a position to be opened at a specified price after the specified price is triggered, reducing their transaction costs.
If the trader judges that the market price will rise in the future, he will buy a certain number of contracts.
Buy/long is actually buying the contract at the right price, waiting for the market price to rise and then selling (close position) to earn the difference.
If the trader judges that the market price will fall in the future, he will short and sell a certain number of contracts.
Sell/short is actually selling the contract at the right price, waiting for the market price to fall and then buying (closing) to earn the difference.
If you have read the above tutorial, congratulations, you have completed the first transaction!
To understand the risks, please read the following article carefully.
MEXC's perpetual contract uses a uniquely designed, fair price tag system to avoid unnecessary liquidation on highly leveraged products. Without this system, the mark price may deviate greatly from the price index due to market manipulation or lack of liquidity, resulting in unnecessary liquidation. This system sets the tag price to a fair price instead of the latest transaction price, thereby avoiding unnecessary liquidation.
All Automatic Deleveraging contracts use a fair price tag method, which only affects the liquidation price and unrealized profit, and is not affected by the realized profit.
Note: This means that when your order is executed, you may immediately see positive or negative unrealized gains and losses because of a slight deviation between the fair price and the transaction price. This is normal and does not mean that you have lost money, but be sure to pay attention to your strong price and avoid liquidating too early.
Liquidation may be the most important concern for traders. BTCKR uses a fair price mark method to avoid liquidating due to lack of liquidity or market manipulation.
For the liquidation closing calculation method, please see liquidation.
All contracts require a certain margin in MEXC, and margin trading also gives you a greater leverage on your contracts.
In the process of margin trading, you need to focus on the following points.
Starting Margin: The minimum margin required to open position, and the starting margin rate (opening position value/position margin) also shows your leverage multiple.
Maintenance Margin: The minimum margin requirement for maintaining a position below which a leveling event or a partial leveling event will be triggered.
Opening Cost: The total frozen assets required to open position, including the initial margin for opening a position and possible handling fees.
Actual leverage: The current position includes the leverage ratio of unrealized gains and losses.
MEXC uses a risk limit for all trading accounts, which reduces the possibility of a huge liquidation.
If some users have huge positions, it will bring risks to other users. If their positions are liquidated, other users may experience automatic light reduction. The risk limit increment model will help to avoid this, and it will increase the margin requirement for large position funds.
To understand Futures trading clearly, please see the example below.
What are the advantages of using a sustainable contract investment?
Suppose that traders A and B participate in BTC trading at the same time, A uses BTCUSDT perpetual contract, B buys spot directly (equivalent to no leverage).
The BTC price at the time of opening the position is 7000 USDT, the opening value is 1 BTC, and the face value of BTCUSDT Perpetual Contract is 0.0001 BTC.
If the BTC price rises to 7500USDT, we compare the earnings of A and B:
If the BTC price drops to 6500USDT, we compare the A and B earnings:
If you need more information about the calculations, use the "Calculator" in the upper right corner of our trading page.