From the mexc.com landing page, click “Derivatives” and followed by “Futures” to access the Futures page.
The futures page contains a wealth of data about the market. This is the price chart of your selected trading pair. You may toggle between the basic, pro and depth views by clicking the options in the top right of the screen.
You may change your trading pair by clicking the menu icon in the top left corner of the screen.
Information about your positions and orders can be seen at the bottom of the screen.
The order book gives you insight into whether other brokerages are buying and selling while the market trades section gives you information about the recently completed trades.
Finally, you can place an order on the extreme right of the screen.
USDT Contracts vs Coin-Margined Contracts
USDT contracts are perpetual contracts denominated and settled USDT. Coin-margined contracts are perpetual contracts denominated and settled with cryptocurrency. traders can select either USDT or coin-margined contracts from the available trading pairs.
In order to trade futures, traders will have to transfer assets from their Spot account to their Futures account.
To place an order, enter your desired price and quantity before confirming the order with the “Buy/Long” or “Sell/Short” buttons.
You may apply different amounts of leverage on different trading pairs. MEXC supports up to 125x leverage. Your maximum allowable leverage is dependent on the initial margin and maintenance margin, which determines the funds required to first open and then maintain a position.
You may change both your long and short position leverage in cross margin mode. Here’s how you can do it.
For instance the long position is 20x, and the short position is 100x. To decrease the risk of long and short hedging, the trader 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 has now been reduced to 20x.
Switching Margin Modes
In order to cater to traders with different strategies, MEXC provides traders two differing margin mode types.
Cross Margin Mode
In cross margin mode, margin is shared between open positions with the same settlement cryptocurrency. A position will draw more margin from the total account balance of the corresponding cryptocurrency to avoid liquidation. Any realised PnL can be used to increase the margin on a losing position within the same cryptocurrency type.
In isolated margin mode, margin assigned to a position is limited to the initial sum posted.
In the event of liquidation, the trader only loses margin for that specific position, leaving the balance of that specific cryptocurrency unaffected. Therefore, isolated margin mode allows traders to limit their losses to the initial margin and nothing more. .
When in isolated margin mode, you can spontaneously optimise your leverage by means of the leverage slider.
By default, all traders start in isolated margin mode.
MEXC currently allows traders to change from isolated margin to cross margin mode in the middle of a trade, but in the opposite direction.
The limit order allows a trader to specify the buy or sell price at which their order will be fulfilled. This allows the trader greater control over transaction prices. However, if the price set is too far from the existing market price, the order may not be fulfilled. In a limit order, the trader needs to specify both the quantity and the price of the asset they would like to trade.
The market order is the immediate execution of a trade at market rates. It is often used when traders would like to make an emergency transaction. Do note that a market order large enough to cause an increase in the price of the purchased asset may result in unforeseen market impact costs.
A stop order is an order to buy or sell only when the price of the assets moves past a certain point. This ensures that a trade is only performed once a stock fulfills a price precondition. The trader can use the stop order to take profit or cut their losses on their held position.
If a trader judges that the market price of a certain contract will rise in the future, they can buy a certain number of contracts and hold them in anticipation of a price increase. The trader can then sell them for a profit and close their position.
If a trader judges that the market price of a certain contract will fall in the future, he can borrow contracts to sell. When the price falls, the trader can close out the position by buying those contracts back at a lower rate and earning the difference.
Forced liquidation is often a trader’s biggest concern. MEXC's perpetual contracts use a uniquely designed, fair price marking 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 illiquidity, resulting in unnecessary liquidation. The system therefore uses a calculated fair price instead of the latest transaction price, thereby avoiding unnecessary liquidation.
All automatic deleveraging contracts use a fair price marking method, which only affects the liquidation price and unrealized profit, and not 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. However, do pay attention to your starting price and avoid premature liquidation.
Trading with leverage requires an understanding of the following concepts:
Starting Margin: This minimum margin required to open a position. Your starting margin is dependent on margin rate requirements.
Maintenance Margin: The minimum margin requirement for maintaining a position below which additional funds will have to be deposited or forced liquidation may occur.
Opening Cost: The total amount of funds required to open a position, including the initial margin for opening a position and transaction fees.
Actual leverage: The current position includes the leverage ratio of unrealized gains and losses.
Risk Limits: When a large position is liquidated, it may cause violent price fluctuations, and result in auto-deleveraging of traders who have taken up an opposing position because the size of the liquidated position exceeds the existing liquidity of the market.
To reduce market impact and the traders affected by liquidation events, MEXC has implemented a risk limiting mechanism, which requires large positions to provide increased initial and maintenance margins. This way, when a large position is liquidated, the probability of widespread auto-deleveraging is reduced, which prevents a chain of market liquidations.
We have provided a side-to-side comparison of two trades, one with leverage and one without, to give you a better idea of how trading with margin works. The example below is fictional and purely illustrative.
Traders A and B have both opened a trade in BTC. Trader A uses a BTC/USDT perpetual contract with 100x leverage while B buys BTC directly with no leverage. The price of BTC when the positions are opened is 7000 USDT.
Here’s what happens when the price of BTC rises to 7500 USDT:
Here’s what happens when the price of BTC drops to 6500 USDT.
You may use the calculator function provided on the MEXC platform to perform your calculations before making a trade.