Tutorial for MEXC New-Version Futures

1. Login

Visit MEXC official website https://www.mexc.com and select [Futures Markets] under the [Derivatives] menu to do real contract trading.

2. Please learn the swap interface carefully.
It mainly includes contract information, trading pairs, price information, position and order information, depth picture and limit / stop-limit order window.

3. Trading

(1) MEXC Swap includes USDT swap and inverse swap. USDT swap takes USDT as margin, while inverse swap takes the corresponding cryptocurrency as margin. Users can trade either of them according to demand.

(2) Asset Transfer. If the contract balance is insufficient, users can transfer the asset from the spot account to the contract account. If there’s insufficient balance in the spot account, users can deposit or do OTC trading.

(3) Place an order at the order window and click [Buy] or [Sell].

4. Leverage

MEXC Futures provides 1 - 125x leverage. The leverage multiplier is different based on the specific product. The leverage multiplier is determined by the initial margin and maintenance margin, and the leverage multiplier determines the minimum asset required to open or maintain a position. You can check the minimum initial margin and maintenance margin required for all contract products here.

**MEXC Swap now supports users to modify leverage multiplier in both long and short directions under isolated margin mode.

[How to modify multiplier]

For example, the leverage multiplier for a user’s long position is 20X, and the short position is 100X. To lower hedging risks, the user wants to adjust the 100x short position to 20x.

Click [Short 100x] and adjust the leverage multiplier you prefer. Here we adjust it to 20X and click [Confirm].

After adjustment, the leverage multiplier for the short position turns to 20X.

5. Cross margin

The cross margin refers to the use of all available balances in the account as margin to avoid forced liquidation. Any other position that has achieved profit can also be margin for losing positions.

The cross margin includes the initial margin and available balance of the contract account, and the losing balance will not be margin to other cross positions. MEXC contract now supports the adjustment from isolated margin to cross margin, but not from cross margin to isolated margin.

6. Isolated Margin

Under isolated margin mode, even if the position is liquidated, the maximum loss will only be the position’s initial margin and the added margin. The available balance will not be used as a margin. Therefore, if the investing strategy is wrong, isolated margin mode will limit your loss.

Users can add margin manually to increase/decrease the liquidation price. If a user adjusts the leverage multiplier after adding margin, the margin added will be reset.

*By default, Futures is under isolated margin mode. Click [Cross] to turn the contract into cross margin mode.

*MEXC contract now support the adjustment from isolated margin mode to cross margin mode, but not vice versa.

[How to adjust?]

MEXC Contract supports users to adjust leverage multiplier in either long or short direction simultaneously. Users can adjust to any leverage multipliers under the isolated margin mode.

For example, if a user holds 20x long for BTC/USDT swap in isolated mode, and he wants to adjust the isolated mode into cross margin mode. He can first click [Long 20x], and then [Cross], at last [Confirm].

7. Open Long/Short

(1) Open long

If the trader judges that the market price will rise in the future, he can buy long of the contract. 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, similar to the spot transaction, referred to as "buy first and then sell".

(2) Open short

If the trader judges that the market price will fall in the future, he can sell short of the contract. Open short is actually selling the contract at the right price, waiting for the market price to fall and then buying to earn the difference, referred to as “sell first and then buy”.

8. Order type

MEXC Contract supports various order types to satisfy the trading demand of different users.

1. Limit order

Users can place an order at a limit price, and the order will be filled if the market price reaches the limit price.

2. Best Bid and Offer (BBO)

Users do not need to set a price, and orders will be filled instantly at the best market price at the time.

3. Trigger-limit

There's "Trigger Price" and "Price". When the market price meets the "Trigger Price", the system will put the order at the "Price", which is the limit price.

4. Post Only

Post Only means that the orders placed by the users will not be filled immediately. Hence, the users will always be the maker who can enjoy the benefits as liquidity providers.

5. Immediately or cancel (IOC)

The limit has to be filled completely at the limit price. If not, the order will be cancelled. It cannot be partially filled.

6. Market-to-Limit (MTL)
The order will be filled at the best price and the unfilled order will be converted into a limit order.

7. Set Stop-Limit

MEXC Futures supports setting Take-profit and Stop-loss prices at the same time. Take short BTCUSDT as an example, open a short position at the price of 10,300 USDT, fill in the Take-profit price at 10200, the Stop-loss price at 10400, and click on [Short] to set both Take-profit and Stop-loss prices.

What are the advantages of Futures?

For example, suppose that traders A and B participate in BTC trading at the same time, A uses BTCUSDT Futures, B buys spot directly (equivalent to no leverage).

The BTC price at the time of opening position is 7000 USDT, the opening value is 1 BTC, and the face value of BTCUSDT Futures is 0.0001 BTC.

Open Long

If the BTC price rises to 7500 USDT, we compare the earnings of A and B:

Project

A- Futures

B - Spot Trading

Open value

7000 USDT

Opening position Value

10,000 contracts (about 1BTC)

1BTC

Leverage multiple

100 times

without leverage (1x)

Position margin

70 USDT

7000 USDT

Earnings

500 USDT

Yield rate

714.28%

7.14%

Open Short

If the BTC price drops to 6500 USDT, we compare the A and B earnings: