MEXC Futures are a derivative product that can be bought or sold to generate profit during market fluctuations.
You may open a long position to purchase contracts in anticipation of a market upturn. You may open a short position by selling contracts in anticipation of a market downturn.
Here’s how you can trade Futures on MEXC.
Step 1: Activate your MEXC Futures Account
Once you have registered with MEXC, activate your Futures account by clicking “Futures”, reading the Risk Control Rules and selecting “Open”.
Step 2. Choose the contract type and pair you want to trade
USDT-based contracts are denominated and settled in USDT; Coin-based contracts, on the other hand, are denominated and settled in a specific type of crypto currency (e.g. BTC/ETH).
Step 3: Set your Margin Mode
There are two margin modes: Isolated and Cross.
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.
Step 4: Transfer funds into your Futures account.
Step 5: Open a position
MEXC Futures provides a variety of order types to accommodate different trading strategies. Select an order method to find out more.
This example will show how a BTC contract can be purchased with a limit order.
First, select the price at which you would like to purchase the contract and the number of contracts you would like to purchase.
This field shows the margin required.
You may check the “Stop-limit at market price” option and set your take profit and stop loss price before confirming your position.
Step 6: Check your position
Once your limit order has been executed, your position will be shown in the “Positions” section.
You can view information like the estimated liquidation price of your position and your unrealised PnL of your position in real time.
You can reduce the risk of forced liquidation by adjusting your margin on the fly or closing your position directly.
Step 7: Closing your position
You may close your position directly by using “Flash Close” or “Close” on the order page.
You may view your profits and losses of each closed position through the order history/position history tabs in the bottom right of the interface.
You may also use the calculator to perform calculations. The calculator is located in the top right of the transaction page.
If you would like to know more about the fees incurred in contract trading, you can check the “Fee” or “Funding Rate” sections.
The “Fee” section shows the handling fee imposed by the platform once on every transaction.The “Funding Rate” shows the price difference between the perpetual contract market price and the fair price, or the fee that is paid from the long traders to the short traders or vice versa.
If you would like to share the results of your trade, you may click the share icon and select “Save” or “Share”.
Congratulations! You have successfully traded futures.
If you would like to learn more about trading futures, you may check our guide here:
Enjoy trading on MEXC
The MEXC Team