1. Holding Long and Short Positions Simultaneously
MEXC provides users with both USDT-based swaps and coin-based swaps. Users may hold both long and short positions on a single contract at the same time. Leverage for both these long and short positions are calculated separately. For each contract, all the long positions are integrated, as are all the short positions. When users have both long and short positions, both positions will require separate margin amounts based on risk limit levels.
For example, while trading the BTC/USDT perpetual contract, users can open 25X long positions and 50X short positions at the same time.
2.Isolated Margin mode and Cross Margin mode
In cross margin mode, all balance of a type of cryptocurrency in an account can be utilised as margin to help avoid liquidation of a position denominated in that specific cryptocurrency. When required, a position will draw more margin from the total account balance of the specific cryptocurrency to avoid liquidation.
In isolated margin mode, margin added to a position is limited to a certain amount. Traders can add or remove margin manually but if the margin falls below the maintenance level, their position will be liquidated. Therefore, a trader’s maximum potential loss is limited to the initial margin. Traders may modify their leverage multipliers in both long and short positions but do note that higher multipliers imply increased risk. When in isolated margin mode, traders may adjust their leverage multiplier for both their long and short positions.
MEXC supports switching from isolated margin mode to cross margin mode but not vice versa.
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