Login at https://www.mexc.io click “Derivatives” followed by "Futures" to enter the transaction 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.
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.
The coin-margined perpetual contract is a perpetual contract denominated in a certain kind of digital asset. MEXC currently offers BTC/USDT and ETH/USDT trading pairs. More will come in future. Here, we will purchase BTC/USDT in an example transaction.
If you do not have sufficient funds, you may transfer your assets from your Spot account to your Contract account by clicking “Transfer” in the bottom right of the screen. If you do not have any funds in your Spot account, you may perform purchase tokens directly with fiat currency.
Once your contract account has the required funds, you may place your limit order by setting price and the number of contracts you would like to purchase. You may then click “Buy/Long” or “Sell/Short” to complete your order.
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.
MEXC supports two different margin modes to accommodate differing trading strategies. They are Cross Margin mode and Isolated Margin mode.
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.
You may buy/go long on a position or sell/go short a position.
A trader goes long when they anticipate a price increase in a contract, purchasing at a lower price and selling it for a profit in the future.
A trader goes short when they anticipate a price decrease, selling at a higher price in the present and earning the difference when they re-purchase it in the future.
MEXC supports a variety of different order types to accommodate different trading strategies. We will next proceed to explain the different order types available.
i) Limit order
Users can set a price that they are willing to buy or sell at, and that order is then filled at that price or better. Traders use this order type when price is prioritised over speed. If the trade order is matched immediately against an order already on the order book, it removes liquidity and the taker fee applies. If the trader’s order is not matched immediately against an order already on the order book, it adds liquidity and the maker fee applies.
ii) Market order
A market order is an order to be executed immediately at current market prices. Traders use this order type when speed is prioritised over speed. The market order can guarantee the execution of orders but the execution price may fluctuate based on market conditions.
iii) Stop Limit Order
A Limit Order will be placed when the market reaches the Trigger Price. This can be used to stop loss or take profit.
iv) Immediate or Cancel Order (IOC)
If the order cannot be executed in full at the specified price, the remaining portion of the order will be cancelled.
v) Market to Limit Order (MTL)
A Market-to-Limit (MTL) order is submitted as a market order to execute at the best market price. If the order is only partially filled, the remainder of the order is canceled and re-submitted as a limit order with the limit price equal to the price at which the filled portion of the order executed.
vi) Stop Loss/Take Profits
You may set your take-profits/stop-limit prices when opening a position.
If you need to perform some basic arithmetic when trading, you may use the provided calculator function on the MEXC platform.