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How to Trade Stock Futures on MEXC

<div data-page-id="McUEd447ropDvmxtpV0uL9O3sib" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-FqSZddwxKoHcwExUrg1uOPU6scc"><span style="font-size: 16px;">Crypto-based Stock Futures are financial derivatives that combine stocks with the cryptocurrency market through futures trading. These instruments allow investors to use cryptocurrency, such as USDT, as margin to trade stock price movements without actually owning the underlying stocks.</span></div><div class="ace-line ace-line old-record-id-doxusoqC3x7ENUDaVEgOQl0HBeO"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusKjRl2gKsZLV8y0Pvnh4Lig"><strong>1. Key Features of MEXC Stock Futures</strong></h2><div class="ace-line ace-line old-record-id-doxuscmT7eYFrUnodPH5bPmPPac"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KDwGd9jEToNmN6xi2iVuYhdMsbt"><span style="font-size: 16px;">1) Supports 24/7 trading, divided into low-liquidity periods and regular trading hours. Please refer to the trading page for the actual trading hours of each pair.</span></div><div class="ace-line ace-line old-record-id-E1fvdlHIgovXWdxRQoSunSFysOc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ngn0d6AIfoI7UMxeEL6uKQydskc"><span style="font-size: 16px;">2) The underlying price is pegged to the corresponding stock price.</span></div><div class="ace-line ace-line old-record-id-QTsQd8RN7ok59MxxGwkuZV0LsSd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FyvLd0v5wogHUaxP2LRuLRs3ssg"><span style="font-size: 16px;">3) Users can open long or short positions, with leverage of up to 200x. Available leverage varies by Stock Futures contracts. Please refer to the trading page for details.</span></div><div class="ace-line ace-line old-record-id-MXZpde85yoicCIxFSoSuTpTXsVg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FuHadmC9koT0wKxn5Ehu0arqsUc"><span style="font-size: 16px;">4) A familiar perpetual futures trading experience makes it easier for investors to get started and lowers the barrier to trading.</span></div><div class="ace-line ace-line old-record-id-doxusa7sUAO3PYUOLPRG04DFPLe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusEsGVTu3Tk4nucBmXfGlfCg"><strong>2. How to Trade Stock Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-CfgsdhxNEoS9JXxXOjiuF8kzsgd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZwT8dJvmfoKCT1xgxxbuAclas4g"><span style="font-size: 16px;">MEXC has launched a range of Stock Futures, including <a data-lark-is-custom="true" href="https://www.mexc.com/futures/COINBASE_USDT">COIN</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/ROBINHOOD_USDT">HOOD</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/NVIDIA_USDT">NVDA</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/AAPLSTOCK_USDT">AAPL</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/AMZNSTOCK_USDT">AMZN</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/GOOGLSTOCK_USDT">GOOGL</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/METASTOCK_USDT">META</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/TESLA_USDT">TSLA</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/MCDSTOCK_USDT">MCD</a>, and more. The platform will continue to add more Stock Futures to meet users' diverse trading needs.</span></div><div class="ace-line ace-line old-record-id-doxusVWTEGV6Pa6nhTomX42wdLw"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusO5O3PrV8MD0p3zRrMTxEdo"><span style="font-size: 16px;">MEXC Stock Futures use the same trading mechanics and interface as crypto perpetual Futures, significantly lowering the barrier to Stock Futures trading and enhancing the overall trading experience.</span></div><div class="ace-line ace-line old-record-id-doxusW6IX4puDnbfigqszF0jCue"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusbKWAnVkzM6bpHP6pgfxcrd"><span style="font-size: 16px;">On the Futures trading page, search for the Stock Futures contract you want to trade, or select <strong>Stocks</strong> from the section below to start trading.</span></div><div class="ace-line ace-line old-record-id-M2bDd1s34o8qbNxFa3KujYGWsxc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;b4276408-5975-4d5f-9d42-6c3b86360703&quot;,&quot;height&quot;:1478,&quot;width&quot;:2938,&quot;currHeight&quot;:1478,&quot;currWidth&quot;:2938,&quot;natrualHeight&quot;:1478,&quot;natrualWidth&quot;:2938,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FBaBjb0QW2oRREvxUu19u9AOLssb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;BaBjb0QW2oRREvxUu19u9AOLssb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1063761,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-Qxgidka4mo84BhxUUs0ueqd3stF"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260722113354994iMG3ONj75skFXE.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJCYUJqYjBRVzJvUlJFdnhVdTE5dTlBT0xzc2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiUXhnaWRrYTRtbzg0Qmh4VVVzMHVlcWQzc3RGIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9CYUJqYjBRVzJvUlJFdnhVdTE5dTlBT0xzc2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/BaBjb0QW2oRREvxUu19u9AOLssb/?mount_node_token=Qxgidka4mo84BhxUUs0ueqd3stF&amp;mount_point=docx_image" data-width="2938" data-height="1478" data-lark-image-uri="drivetoken://BaBjb0QW2oRREvxUu19u9AOLssb" data-lark-image-width="2938" data-lark-image-height="1478" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusFqH3zhwi4wZ2nicVXyZdfg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusSLaOP8QEhe4mOfYDTPHiHc"><span style="font-size: 16px;">*BTN-<strong>Start Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/COINBASE_USDT">https://www.mexc.com/futures/COINBASE_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-doxus7PUhKzjC6fOGAwR5O9gObZ"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VW6yd476kokaaKxWRMSu6DyKs8e"><span style="font-size: 16px;">Similarly, on the Futures trading page in the MEXC App, search for the Stock Futures you want to trade to start trading. For better experience, please update the MEXC App to version 6.17.0 or later.</span></div><div class="ace-line ace-line old-record-id-doxusN0jTm0u8cebqzdjj3Xcyqd"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;c62617c5-6533-4012-9174-09f6ab12e9d0&quot;,&quot;height&quot;:541.5838926174497,&quot;width&quot;:524,&quot;currHeight&quot;:541.5838926174497,&quot;currWidth&quot;:524,&quot;natrualHeight&quot;:2156,&quot;natrualWidth&quot;:2086,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.25119846596356665,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMEVibbmdPoDrKUxKPm6uGBUPs5c%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;MEVibbmdPoDrKUxKPm6uGBUPs5c&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:913963,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusTvoRrF4G2XbOmYlBBVMdFe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260722113354844UDTJOAdq9X9bR6.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNRVZpYmJtZFBvRHJLVXhLUG02dUdCVVBzNWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNUdm9SckY0RzJYYk9tWWxCQlZNZEZlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NRVZpYmJtZFBvRHJLVXhLUG02dUdCVVBzNWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/MEVibbmdPoDrKUxKPm6uGBUPs5c/?mount_node_token=doxusTvoRrF4G2XbOmYlBBVMdFe&amp;mount_point=docx_image" data-width="2086" data-height="2156" data-lark-image-uri="drivetoken://MEVibbmdPoDrKUxKPm6uGBUPs5c" data-lark-image-width="2086" data-lark-image-height="2156" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxus2lT5w0cGE9uMUQzKPQuITf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusIbQkN9TU21JIQxzqTrI0Je"><strong>3. Important Notes for Trading Stock Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-BNj2d2qGiolgIuxriIRunasHsse"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XX3kdE1ZJoQEbBxpN12urDLpsVu"><span style="font-size: 16px;">1) <strong>Trading Hours: </strong>Supports 24/7 trading.</span></div><div class="ace-line ace-line old-record-id-Clu2ddwvgoiptjxghPqucKTVsPe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LcN5duPPHoj7rgxCZCxue4Bqsih"><span style="font-size: 16px;">2) <strong>Leverage Risk Reminder:</strong> Stock Futures support leveraged trading. Leverage amplifies both profits and losses and may result in liquidation or losses exceeding your margin. Please choose your leverage carefully.</span></div><div class="ace-line ace-line old-record-id-Xa6cd4ibJorsqQxKzfZu3TZqsWH"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ex0Vd8EQioWdyTxtDP5uQYnXs9f"><span style="font-size: 16px;">3) <strong>Low-Liquidity Period: </strong>A term specific to MEXC. During this period, slippage may increase, index prices may pause, and orders, including TP/SL orders, may not be filled. Consider reducing order size or splitting orders. Maximum leverage for some pairs may be temporarily lowered for new orders only. Price gaps or sharp volatility may occur when regular trading resumes.</span></div><div class="ace-line ace-line old-record-id-KQOCdisTioURqPxQYXNuXIbfs4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-G1LtdqSQ8oRe7gxRJCqud4ddsKg"><span style="font-size: 16px;">4) <strong>Special Corporate Events: </strong>During events such as ex-rights issues, stock splits, or reverse stock splits, the platform may apply early settlement or position adjustments based on market conditions. Please monitor updates and manage risk in advance. </span></div><div class="ace-line ace-line old-record-id-doxuspZNWYAUGkjzHLUC9MVeuAb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus9NUMmzJKeJuVTRgfIV3Qif"><span style="font-size: 16px;">Notes:</span></div><div class="ace-line ace-line old-record-id-doxus1OB1DyZK3YWBhFfod4BzTd"><span style="font-size: 16px;">1) <strong>Dividends and ex-rights</strong> refer to corporate actions where profits are distributed to shareholders in the form of cash or stock. On the ex-dividend date, the stock price is adjusted accordingly.</span></div><div class="ace-line ace-line old-record-id-doxusshaJ97Y4TfNceJVDOizRxe"><span style="font-size: 16px;">2) <strong>Stock splits</strong> increase the number of shares outstanding while reducing the price per share, which can improve liquidity. Splits are generally considered a positive signal about a company's growth outlook.</span></div><div class="ace-line ace-line old-record-id-doxusXo02rQH5igYS0EKY5Mn3N3"><span style="font-size: 16px;">3) <strong>Reverse splits (also called stock consolidations)</strong> reduce the number of shares and increase the price per share, often used to meet listing requirements or improve earnings per share.</span></div><div class="ace-line ace-line old-record-id-doxusPIyJt7fcOJYIqyTFgSAPGc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnnwqH26AIkYQiuDnm4v1rm"><strong>4. MEXC Stock Futures FAQs</strong></h2><div class="ace-line ace-line old-record-id-doxusRA6Hwkbysu9N1D8NCDvhVe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusYwauXHYLAgvcORCV05CQ2b"><span style="font-size: 16px;">4.1 How is the fair price calculated?</span></h3><div class="ace-line ace-line old-record-id-JuETd7KjLo539IxadAPuE1alsCb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XCCcdI5mJowQxAxk8p6umSCEsMM"><span style="font-size: 16px;">The fair price is anchored to the latest price of the underlying stock.</span></div><div class="ace-line ace-line old-record-id-NWsQd1T3FoV1ARxINEiubtYRsAf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusdgC5QWNKBTEyTOWqhjOq0g"><span style="font-size: 16px;">4.2 How is PNL calculated?</span></h3><div class="ace-line ace-line old-record-id-doxusu1jvizr7FhdKOW6zS7ZHOd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusfUIvF0L1aGDnA4ogyZdJDb"><span style="font-size: 16px;">For each Stock Futures trade, profit and loss (PNL) is primarily determined by the price difference between the opening and closing prices. Note: Leverage amplifies both potential gains and losses. Actual results depend on the leverage used and position size.</span></div><div class="ace-line ace-line old-record-id-doxusMuckRFcduLScio77TV32cb"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-doxusGejDTfMOCj5kKcV0TW4ycg"><span style="font-size: 16px;"><strong>Formula: PNL = (Closing Price − Opening Price) ×</strong><strong> Leverage </strong><strong>× Number of Shares × Direction</strong> Direction: Long = +1; Short = -1</span></div><div class="ace-line ace-line old-record-id-doxusMyhPvdkjINP6XQl41HDYwd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusMziIGuPfiyxYipknZlVKxd"><span style="font-size: 16px;">Examples:</span></div><div class="ace-line ace-line old-record-id-doxusLDF1iq0gmM0kEYqj9sa9wg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusddsqlWYxzRd8yGZN9TzeSc"><span style="font-size: 16px;">1) Profit from a Long Position: Buy 1 share of Apple (AAPL) at $100 (leverage = 1). When the price rises to $105, close the position.</span></div><div class="ace-line ace-line old-record-id-TBBndR4EeooGDtxkclEuFRmYsZe"><span style="font-size: 16px;">PNL = (105 − 100) × 1 × 1 = $5</span></div><div class="ace-line ace-line old-record-id-doxusmAoCClIsixJW0qAfZVyr3c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusYJAeBFbVhW4mWojBfgpsJh"><span style="font-size: 16px;">2) Profit from a Short Position: Sell 1 share of Tesla (TSLA) at $200. When the price drops to $195, close the position.</span></div><div class="ace-line ace-line old-record-id-GbXGdSoKtoWX3FxQJBVuIuLhsTf"><span style="font-size: 16px;">PNL = (195 − 200) × 1 × 1 × (−1) = $5</span></div><div class="ace-line ace-line old-record-id-doxus9vyyOGPyPeT3mVgwDrsnPh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusLuOoNgO6AxnT2kjLaUjzch"><span style="font-size: 16px;">4.3 What is the risk management system?</span></h3><div class="ace-line ace-line old-record-id-doxusgIry4nl2OBZqp4xLDPD4In"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFGG4aZ9zwmFwZFnw16AF0N"><span style="font-size: 16px;">MEXC implements a risk management system consistent with leading Perpetual Futures platforms:</span></div><div class="ace-line ace-line old-record-id-doxusuCPbaEAqyRcjplIFzVq9ef"><span style="font-size: 16px;">1) The platform continuously monitors users' margin rate in real time.</span></div><div class="ace-line ace-line old-record-id-doxusk9FcWmCWDpAZuExwfdfhyg"><span style="font-size: 16px;">2) Margin ratios are calculated based on the fair price.</span></div><div class="ace-line ace-line old-record-id-doxusTzHTPdcJJ7bVOYle8f2XUd"><span style="font-size: 16px;">3) When the margin rate falls below the maintenance threshold, the system will automatically trigger liquidation to minimize potential losses</span></div><div class="ace-line ace-line old-record-id-doxusTl8BpbUyM3c7f7vAGbONNe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuswVDhSMNpFvF1p338Npuuvb"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-CZGcdyfnYoOkaCxjE6IuXUw5soc" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/realstocks-trading-faq-382924861612411904" style="font-size: 16px;">RealStocks Trading FAQ</a></div></li><li class="ace-line ace-line old-record-id-LWoXdAz3sohCYExZBCEuvOmhsog" data-list="bullet"><div><a href="https://www.mexc.com/support/article/creating-a-realstocks-account-faq-381277028689799168" data-lark-is-custom="true" style="font-size: 16px;">Creating a RealStocks Account FAQ</a></div></li><li class="ace-line ace-line old-record-id-NejTdRLMVo1eMjx97lnuwlY3sMe" data-list="bullet"><div><a href="https://www.mexc.com/learn/article/17827791535795" data-lark-is-custom="true" style="font-size: 16px;">What Is RealStocks?</a></div></li><li class="ace-line ace-line old-record-id-ANQTdgMdeos2qsxFBycuqV9IsCh" data-list="bullet"><div><a href="https://www.mexc.com/learn/article/17827791527002" data-lark-is-custom="true" style="font-size: 16px;">How to Trade Tokenized Stocks on MEXC</a></div></li></ul><div class="ace-line ace-line old-record-id-doxusKAp9q4Vxt6zyb1XOCRhbir"><br></div></div>

How to Use Moving Average Indicators in Trading: A Complete Beginner's Guide

<div data-page-id="Qf8sdUO4roJvP1xHpituldXpsCg" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-JvjjdPMUwolI2Cxjem5uzo1ssZe"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Hfbedhp5voKTZOxeFFAuDi5Nsjf" data-list="bullet"><div><span style="font-size: 16px;">A moving average is a core technical indicator that smooths price fluctuations by averaging historical price data, helping traders identify market trends.</span></div></li><li class="ace-line ace-line old-record-id-GsMgdOpN3o3N8AxqLapumUSwsSg" data-list="bullet"><div><span style="font-size: 16px;">Common types include the simple moving average, exponential moving average, and weighted moving average, each offering different levels of sensitivity and suitable use cases.</span></div></li><li class="ace-line ace-line old-record-id-WWfxdnoxyoSLg1xRbTeu95yCsZf" data-list="bullet"><div><span style="font-size: 16px;">The four main practical uses of moving averages are identifying trend direction, finding dynamic support and resistance, capturing moving average crossover signals, and setting trailing stops.</span></div></li><li class="ace-line ace-line old-record-id-REeDdGQhEorqCrx9i5JubGpyslf" data-list="bullet"><div><span style="font-size: 16px;">Different trading styles call for different moving average settings. Longer periods provide more stable signals, while shorter periods respond more quickly to price changes.</span></div></li><li class="ace-line ace-line old-record-id-WSHxdCLBSobYOCx6DCQu6GGesXd" data-list="bullet"><div><span style="font-size: 16px;">MEXC provides built-in moving average tools with customizable settings that can be used to develop Spot and Futures trading strategies.</span></div></li></ul><div class="ace-line ace-line old-record-id-DGf4d3qUpofo26xuOxFujCgEsWe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-XucWdXhYKoKQCdxSCjUuuQEHs6d"><strong>1. What Is a Moving Average?</strong></h2><div class="ace-line ace-line old-record-id-ZYDPdeLnBoGz4qxQMFfu8mmrsgg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RGYHdE09ZoBAsAxpYWZujOl8slb"><span style="font-size: 16px;">A <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/moving-average-30294">moving average </a>(MA) is a technical indicator that calculates the average price over a specified period and plots the result as a smooth line. Its primary purpose is to filter out the noise created by short-term market fluctuations, allowing traders to see the overall direction of price movements more clearly.</span></div><div class="ace-line ace-line old-record-id-KApedkJwsoeWAbxRFvYuKP17ser"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V9pednQAZo2qadxA19PuP2AisFg"><span style="font-size: 16px;">For example, suppose the closing prices of an asset over the past five trading days were 1 <a data-lark-is-custom="true" href="https://www.mexc.com/price/tether">USDT</a>, 2 USDT, 3 USDT, 4 USDT, and 5 USDT. The five-day moving average would be:</span></div><div class="ace-line ace-line old-record-id-Xo1edvsohoC3yZx0QZYuhj0YswP"><span style="font-size: 16px;">(1 + 2 + 3 + 4 + 5) / 5 = 3 USDT</span></div><div class="ace-line ace-line old-record-id-B5hNdpuixovf6YxuCiCuwYL7sId"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Znf8dKH5Sow2S3x7s6OuYeu0sBd"><span style="font-size: 16px;">When new price data becomes available, the indicator removes the oldest data point and includes the latest one. As a result, the average continuously moves over time, which is where the indicator gets its name.</span></div><div class="ace-line ace-line old-record-id-UT4IdORDnoZvO6xwioPuRbkeshg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;89f7731b-0fe4-4c24-b348-cdcac1e57bc4&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FKvaubycyiokotbxIWKVutyyHsme%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;KvaubycyiokotbxIWKVutyyHsme&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:256365,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-EFwCddD0xojna7xm2nUu9ogwsOh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174310844MhBnMp3DgMoRCJ.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJLdmF1YnljeWlva290YnhJV0tWdXR5eUhzbWUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRUZ3Q2RkRDB4b2puYTd4bTJuVXU5b2d3c09oIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9LdmF1YnljeWlva290YnhJV0tWdXR5eUhzbWUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/KvaubycyiokotbxIWKVutyyHsme/?mount_node_token=EFwCddD0xojna7xm2nUu9ogwsOh&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://KvaubycyiokotbxIWKVutyyHsme" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-Sh1rdSSo4okbizxcWbKu9esnsPs"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-XEJjdZ9cnoWK2ZxW7mlupwNVsmf"><strong>2. Main Types of Moving Averages</strong></h2><div class="ace-line ace-line old-record-id-NiJudGvXtobgw5xvfTauDpcPs3e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RvBIdUYDcoeT4qxHzLNuF7n8smh"><span style="font-size: 16px;">2.1 Simple Moving Average (SMA)</span></h3><div class="ace-line ace-line old-record-id-Z5VIdBqAeo1p1IxV3oculo46s3g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MN7fdTb1VoFooHxOdgYuz4l0sZd"><span style="font-size: 16px;">A simple moving average calculates the average of all closing prices within a specified period, giving each data point equal weight. Its main advantage is that it is smooth and less affected by short-term fluctuations, making it suitable for identifying medium- to long-term trends. However, it reacts more slowly to recent price changes.</span></div><div class="ace-line ace-line old-record-id-MYCEd2cZ4oejJ3xI3zjuGi0KsOg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-SyXMd05f6o6rr9xyVkpuZbVbssh"><span style="font-size: 16px;">2.2 Exponential Moving Average (EMA)</span></h3><div class="ace-line ace-line old-record-id-E2PSdze4KoHM6Lxz2TquTDcDs4g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WqbOdDEdwo2nxKxbT8kuueGEsve"><span style="font-size: 16px;">An <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/exponential-moving-average-ema-30295">exponential moving average</a> assigns greater weight to more recent prices, while older data has less influence on the calculation. As a result, it responds more quickly to current market prices and can help traders identify trend changes sooner. It is commonly used by day traders and swing traders.</span></div><div class="ace-line ace-line old-record-id-NOK4d8QeBoYq7Kxy8VRu2zPbssf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KJl4d3PiKofr7Gx4k5uux91Ls8g"><span style="font-size: 16px;">2.3 Weighted Moving Average (WMA)</span></h3><div class="ace-line ace-line old-record-id-OoQydjDNGohU3hxkVuNuqO51sid"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MmESdq07lo4vLKxGiAZuClxOsEc"><span style="font-size: 16px;">A weighted moving average combines characteristics of both SMA and EMA. It assigns weight to price data on a linear basis, maintaining a degree of stability while tracking recent price movements more closely than a simple moving average.</span></div><div class="ace-line ace-line old-record-id-Hgg9djsH4oxIX4x9y2luKwPhsde"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;78d7d2e6-9a3b-45df-b502-a3ac57961793&quot;,&quot;height&quot;:450,&quot;width&quot;:800,&quot;currHeight&quot;:450,&quot;currWidth&quot;:800,&quot;natrualHeight&quot;:450,&quot;natrualWidth&quot;:800,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPExTbi1v2o5bFCxDzgRuFxKmsrh%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;PExTbi1v2o5bFCxDzgRuFxKmsrh&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:303627,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-MkmOdrn4Eo3fK2xcBEAuuQgns4g"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202607161743112972HSTd7UPB6HjWp.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQRXhUYmkxdjJvNWJGQ3hEemdSdUZ4S21zcmgiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTWttT2RybjRFbzNmSzJ4Y0JFQXV1UWduczRnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QRXhUYmkxdjJvNWJGQ3hEemdSdUZ4S21zcmgvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PExTbi1v2o5bFCxDzgRuFxKmsrh/?mount_node_token=MkmOdrn4Eo3fK2xcBEAuuQgns4g&amp;mount_point=docx_image" data-width="800" data-height="450" data-lark-image-uri="drivetoken://PExTbi1v2o5bFCxDzgRuFxKmsrh" data-lark-image-width="800" data-lark-image-height="450" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-J5psdM2Cjooa5wxuG6su5T7csqc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-LiAqd8YmooxZGKxTSDvuU9IUsbc"><strong>3. Practical Uses of Moving Averages in Trading</strong></h2><div class="ace-line ace-line old-record-id-HZmAdTDx6oDerMxWJcNublq4skh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Qfh6dJwaNoBFQKxzXlGunkStsQe"><span style="font-size: 16px;">3.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-GRd7dAOBDobj19xBCfAuGDVqssc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MZeid4KFAozDKIxbimMuwQA8s4g"><span style="font-size: 16px;">This is the most basic use of a moving average. When the price is above the moving average and the moving average is sloping upward, the market is generally considered to be in an uptrend, and traders may look for long opportunities.</span></div><div class="ace-line ace-line old-record-id-S3sWdxURaoyVqJxfgu6uZoifs5c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FBFsdbRTLowD7gxRWk7u43DIswh"><span style="font-size: 16px;">When the price is below the moving average and the moving average is sloping downward, the market is generally considered to be in a downtrend, and traders may choose to stay on the sidelines or look for short opportunities.</span></div><div class="ace-line ace-line old-record-id-UXtXd1jReoPMjHxMLktuwshVsXf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OmjKdLn3CoKOC0xqnLFuLEdus7d"><span style="font-size: 16px;">Many traders use the 200-period moving average as a key reference for identifying the prevailing trend on their chosen timeframe.</span></div><div class="ace-line ace-line old-record-id-L342dniIfoacXBxt4TEurFbCsrc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-VauGdbC7foJemSxIGekufPajseb"><span style="font-size: 16px;">3.2 Find dynamic support and resistance</span></h3><div class="ace-line ace-line old-record-id-EGsTdt4MSorKicxp03wuL8jRsjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UeMCdP7i1o3jEoxoTy1utY8As9b"><span style="font-size: 16px;">In trending markets, moving averages often act as dynamic support or resistance levels.</span></div><div class="ace-line ace-line old-record-id-Cp4sd6MjTo46t7xqWrEupSOmsdb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Qd3zdpx5JotoTzx3t61uPVivs0c"><span style="font-size: 16px;">During an uptrend, a price pullback toward the moving average followed by a rebound may provide a potential entry opportunity. During a downtrend, a price rally toward the moving average followed by rejection may present an opportunity to exit long positions or open short positions.</span></div><div class="ace-line ace-line old-record-id-CeATd4EfUoEO3lxmSHbunwnmsNd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SjWndQ2nRoEm90xKvLCuLvJNszh"><span style="font-size: 16px;">Compared with entering after a sharp price increase, waiting for the price to return closer to the moving average may provide a smaller stop-loss range and a more favorable risk-reward ratio.</span></div><div class="ace-line ace-line old-record-id-XLk8dc38So6vefxcKFlu8rshsFb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Bf5Ndv7yBomdpaxKbaKuxWwHsDh"><span style="font-size: 16px;">3.3 Use moving average crossover signals</span></h3><div class="ace-line ace-line old-record-id-Rn6bd6EWoobZnCxqKHjuDXhiscf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FyJXdzkSbowU2axunJxu86K4spb"><span style="font-size: 16px;">Moving average crossovers are a classic buy and sell signal:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-CoXUdU6DKoXmD9x4CJ5ueG7IsBu" data-list="bullet"><div><span style="font-size: 16px;"><strong>Golden cross:</strong> A short-term moving average, such as the 50-period MA, crosses above a long-term moving average, such as the 200-period MA. This is generally regarded as a bullish signal and may indicate the beginning of a longer-term uptrend.</span></div></li><li class="ace-line ace-line old-record-id-A5ybdvdL6oAk2hxXj75uPdsPsLf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Death cross:</strong> A short-term moving average crosses below a long-term moving average. This is generally regarded as a bearish signal.</span></div></li></ul><div class="ace-line ace-line old-record-id-ThHxd82EOoHrcFxSZHHuBvC6scb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YJKpdmCcGouPVrxCcyWuTni6s5c"><span style="font-size: 16px;">Moving average crossover strategies tend to work better in markets with clear trends. In sideways markets, however, frequent false signals may occur and lead to repeated small losses. It is therefore recommended to combine moving averages with other technical indicators, such as trading volume and support and resistance levels.</span></div><div class="ace-line ace-line old-record-id-PIE5dZnc0omEyHx7l2aumhi1sWG"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-R9nPdTlCzo626mxmqV5uxvZtsHd"><span style="font-size: 16px;">3.4 Use moving averages as trailing stops</span></h3><div class="ace-line ace-line old-record-id-DGWTdDKSZodKSSxQpd2ugxNUs9e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-StgzdsE2RomlXqx4z8DujXF5sfe"><span style="font-size: 16px;">Traders can also use moving averages to manage trailing stops while holding a position.</span></div><div class="ace-line ace-line old-record-id-RtB4dLKDho8nSjxU4QmuoxpksYd"><span style="font-size: 16px;">For example, when holding a long position, a trader may continue holding as long as the price does not close decisively below the 50-period moving average. Once the closing price falls below the moving average, the trader may close the position.</span></div><div class="ace-line ace-line old-record-id-UHXXdOSlgowBtdxspLlu7cDBs4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GtCNdPLhAo55HVx5MJiuiOHtsUg"><span style="font-size: 16px;">Longer-period moving averages can help traders stay in larger trends, while shorter-period moving averages may help lock in profits earlier and reduce drawdowns.</span></div><div class="ace-line ace-line old-record-id-NmrQdKVjjo2Zbfx7J4qufx3Wsgb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-DrrZdjWWfomly9xjAsgu0tkCsUg"><strong>4. How to Use Moving Averages on MEXC</strong></h2><div class="ace-line ace-line old-record-id-YK3hdM2uEoM5msx1tNAu8azzsve"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jf8qdB1mpoWg2gxsyp2uOzxYsJd"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website</a> → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → MA</span></div><div class="ace-line ace-line old-record-id-EXdDd6iyboZ7AYxTi63u6cNTs6c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZMmudJ8rVoO7i6xF7t2uRDOps1g"><span style="font-size: 16px;">MEXC allows users to customize the moving average period, type, and color. Multiple moving averages can also be displayed at the same time to create a moving average crossover strategy.</span></div><div class="ace-line ace-line old-record-id-DK59d02o7opUmhxqmitu1qAgsPb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YrhXdKkqGow9iYxDYr8uGdGBsth"><span style="font-size: 16px;">Whether trading Spot or Futures, users can incorporate moving averages into their entry, exit, and stop-loss plans to make their trading decisions more disciplined and systematic.</span></div><div class="ace-line ace-line old-record-id-M1iHdVTFdowILpxDgmhuUcA1sCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-MM5SdGXbOosZkTxJtbsu2MSjs5f"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-IcOidF5W8ouOahxettguJ4rdsbg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2aed490a-bc94-4076-84b3-a9f30b345b91&quot;,&quot;height&quot;:639,&quot;width&quot;:1280,&quot;currHeight&quot;:639,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:639,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMparb1xFsoPIAjxAkO2u0KS8sTk%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;Mparb1xFsoPIAjxAkO2u0KS8sTk&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:280073,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-YeUGdtrlUom1pgxGglVucXYlsgc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174311202u4LhUszSOCmN9u.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNcGFyYjF4RnNvUElBanhBa08ydTBLUzhzVGsiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWWVVR2R0cmxVb20xcGd4R2dsVnVjWFlsc2djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NcGFyYjF4RnNvUElBanhBa08ydTBLUzhzVGsvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Mparb1xFsoPIAjxAkO2u0KS8sTk/?mount_node_token=YeUGdtrlUom1pgxGglVucXYlsgc&amp;mount_point=docx_image" data-width="1280" data-height="639" data-lark-image-uri="drivetoken://Mparb1xFsoPIAjxAkO2u0KS8sTk" data-lark-image-width="1280" data-lark-image-height="639" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-RmEtdAhBQocTm2xW8DEu6ddWsOd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YsmHdWQK3o9X8px3lHLuQiiOs7J"><strong>5. Moving Average FAQ</strong></h2><div class="ace-line ace-line old-record-id-HInRdaHAQomU9sx6bAruNzXPsLg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DyFadKfWdoQUMtx1qQruEO2sssd"><span style="font-size: 16px;">5.1 How do traders use moving averages?</span></h3><div class="ace-line ace-line old-record-id-GZa0dbjqPogdCfxnQCOu7kN1slc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FAUFde35JorgQHxAXvWuzDEzsCg"><span style="font-size: 16px;">Moving averages are mainly used in four ways: identifying trend direction, finding dynamic support and resistance, generating buy and sell signals through moving average crossovers, and serving as trailing stop tools to lock in profits.</span></div><div class="ace-line ace-line old-record-id-M2DJd1WqnoY9T0xS5Wcuj9aFsPd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IsRBd0fNnoCIqqxElPDuYD9mspf"><span style="font-size: 16px;">5.2 How do I use the 50-period and 200-period moving averages?</span></h3><div class="ace-line ace-line old-record-id-IiRQdBzKvoqqeWxSygTuImRksAe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KqjKdyGglod2bexHpj7uC5rostc"><span style="font-size: 16px;">The combination of the 50-period and 200-period moving averages is a widely used approach to identifying long-term trends.</span></div><div class="ace-line ace-line old-record-id-Ga13dcu9VocAOwxyjg8uueqKsqd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-N1c4d4DOfoMHjhxZKEauInA5soc"><span style="font-size: 16px;">When the 50-period moving average crosses above the 200-period moving average, it forms a golden cross and is generally considered bullish. When it crosses below the 200-period moving average, it forms a death cross and is generally considered bearish.</span></div><div class="ace-line ace-line old-record-id-AZsBd8zgkouqYJxjH2eugX5Wsaf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GbsqdKKFloM0QixAEsXu90pksKb"><span style="font-size: 16px;">The position of the price relative to the 200-period moving average is also an important reference for identifying bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-PgtAdz23hoVTuVx1QuWumEiPscf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-XXfzdcPi9oBhs8xf9gZuCPjesKc"><span style="font-size: 16px;">5.3 Should I use a 200-period EMA or SMA?</span></h3><div class="ace-line ace-line old-record-id-YmRbdCwUIoAwEfxjUHFugLFWsNb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VI0EdKj59onnQqxNLb3uSJ9Gsuf"><span style="font-size: 16px;">For identifying long-term market trends, the simple moving average is generally smoother and may provide a more stable reference.</span></div><div class="ace-line ace-line old-record-id-RUJbdyeAkoVwcUxZnHKubq19svb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RpV9dEtPioMSSJx4PduuoGpLsKd"><span style="font-size: 16px;">Traders who want the indicator to respond more quickly to price changes may prefer the exponential moving average. Neither is universally better, and the choice depends on the trader's trading style.</span></div><div class="ace-line ace-line old-record-id-YM39d2kghoC7HzxaAAVuIDpisVe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-U8vJddZlDolqqexky7muti69s2d"><span style="font-size: 16px;">5.4 Is the 20-period or 50-period moving average better?</span></h3><div class="ace-line ace-line old-record-id-ScOhdvCU6ord30xhDdRu9sZJsLl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-REyXduJiQooNg4xLufyucJu0s2e"><span style="font-size: 16px;">The 20-period moving average is more suitable for capturing short-term momentum. It responds quickly but may produce more market noise.</span></div><div class="ace-line ace-line old-record-id-CRrXd44A6okyGjxfymJuHFq1sLc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SbQRdJmiDojAUbxZ8NbuCTkNs5g"><span style="font-size: 16px;">The 50-period moving average is more suitable for identifying medium-term trends and generally provides more stable signals. Short-term traders may focus more on the 20-period moving average, while swing traders may prefer the 50-period moving average.</span></div><div class="ace-line ace-line old-record-id-Ut77dWtIRocNAFx4zmiuTpgpsme"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-CHu5dkWI7oTuTXxHInHulsnys3d"><span style="font-size: 16px;">5.5 What is the best moving average setup for day trading?</span></h3><div class="ace-line ace-line old-record-id-ND5tdeOtmomoPDxZFwyuXuq4sjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TyeddjrcToEiw7x4228uHXLGsAc"><span style="font-size: 16px;">A common approach is to use a combination of the 9-period and 21-period exponential moving averages on shorter-term charts.</span></div><div class="ace-line ace-line old-record-id-BFOydfyLzoKtpZxFdYwu8L1FsOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PjYDdc0TQosBUExg5Q4uAEZRsqb"><span style="font-size: 16px;">Using a 10-minute or 15-minute chart may help reduce the false signals that occur on extremely short timeframes.</span></div><div class="ace-line ace-line old-record-id-NcM9doQzjoLqcOxnwLGuqbv7sQ9"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-FKp2dERzzo7gBZx9ZpNupPoIsRy"><span style="font-size: 16px;">5.6 What is the moving average formula?</span></h3><div class="ace-line ace-line old-record-id-F7KedPAFLo5jySx7tE8upCidsbe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KzR3dn7fZoPZunxk6gDuDBGHsRg"><span style="font-size: 16px;">A simple moving average is calculated by adding the closing prices over a specified period and dividing the total by the number of periods.</span></div><div class="ace-line ace-line old-record-id-Fsf7dnWQUoEs5ZxafD9u062zsfd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RUZedMZgHo4p3Dxo7G9uzr6ysLf"><span style="font-size: 16px;">For example, a 10-day moving average equals the sum of the closing prices from the most recent 10 trading days divided by 10. An exponential moving average uses a similar calculation but assigns greater weight to more recent data.</span></div><div class="ace-line ace-line old-record-id-Nj9qdkNCwoSBFfxDmmtu23Upsqg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KzZGdPUQKoKlQjx6EvIuEUjqs9e"><span style="font-size: 16px;">Moving averages are an essential technical analysis tool because they are simple, intuitive, and practical. By mastering their four main uses—trend identification, dynamic support and resistance, crossover signals, and trailing stops—and selecting suitable parameters based on their trading timeframe, traders can improve the quality of their trading decisions.</span></div><div class="ace-line ace-line old-record-id-CbCOdOk0voBzHSxxK1guIM6msmg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-YSKudgWAvoIP5ixRxqqujn1vsSR"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-XEGwdtPQZoscP9x0B0uuHn5LsAh" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">How to Use the Exponential Moving Average Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-G9IEdrBCmoI101xL1ssuldTQs0a" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">How to Use Bollinger Bands in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-DL8edziQiorPHJxbg7jutSH0s9f" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-GtDDdzfUhoYjgVxJshKuY30CsEb" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-EqhFdFDtxo14LwxsuSQuxfIqsCe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HUdwdT28PoTYxVxaupnu7grQsTf"><span style="font-size: 16px;"><span style=""><strong style="">Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></span></div></div>

How to Use the Exponential Moving Average Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="KLBCdA3Y5oa20bxazOBu5vu1snf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-KFDZdS1C5oMI8IxdOuIunYBrsgc"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-LenRdfRdQolM9Jx8cbnukKuOsqf" data-list="bullet"><div><span style="font-size: 16px;">The exponential moving average is a trend-following technical indicator that assigns greater weight to recent prices, allowing it to respond more quickly to recent market changes.</span></div></li><li class="ace-line ace-line old-record-id-JL69dVbwToQOjSx9RJMuTsKBsWb" data-list="bullet"><div><span style="font-size: 16px;">By smoothing price fluctuations, the exponential moving average helps traders identify trend direction and potential buying or selling opportunities.</span></div></li><li class="ace-line ace-line old-record-id-B39xd9jscodscJxLBE9u2FZusRh" data-list="bullet"><div><span style="font-size: 16px;">The main difference between the exponential moving average and the simple moving average lies in how price data is weighted. The exponential moving average is more sensitive to recent price changes.</span></div></li><li class="ace-line ace-line old-record-id-YY5QdF45qo4grSx0CHquAUh6sqe" data-list="bullet"><div><span style="font-size: 16px;">Common uses include identifying trends, finding dynamic support and resistance, and monitoring golden cross and death cross signals.</span></div></li><li class="ace-line ace-line old-record-id-E33VdbWSuoUELtxVWIgu5ovRs1f" data-list="bullet"><div><span style="font-size: 16px;">Users can add the exponential moving average indicator to candlestick charts on MEXC and combine it with other tools to develop trading strategies.</span></div></li></ul><div class="ace-line ace-line old-record-id-C3MLdhoBoo9o6cxkNnRuRlYispc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-I78Udk77XoK4V9xWxxHu2FfzsHe"><strong>1. What Is an Exponential Moving Average?</strong></h2><div class="ace-line ace-line old-record-id-BPfbdMOeSoKfy7x8beeubz3SsXe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A2ELdVnYuohL1exhlbvueg7ssTf"><span style="font-size: 16px;">The <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/exponential-moving-average-ema-30295">exponential moving average</a> (EMA) is one of the most commonly used technical analysis indicators in both cryptocurrency and traditional financial markets. It helps identify market trends by calculating the weighted average price over a specified period. Its main characteristic is that more recent price data receives greater weight, while the influence of older data decreases exponentially.</span></div><div class="ace-line ace-line old-record-id-Rv83dpEGLop6ZIxkCJGukVCss0P"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JaqWd0ecooMPvaxW1lluCKSZs3b"><span style="font-size: 16px;">This design is based on the assumption that recent prices reflect current market sentiment and supply and demand conditions more accurately than older prices. Compared with a simple moving average (SMA), the EMA can capture recent price movements more quickly, making it particularly suitable for highly volatile and fast-moving cryptocurrency markets.</span></div><div class="ace-line ace-line old-record-id-XIpNdCLSjok8uBxw51fuIZ18sHh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CRNfdT97Nodah6xG5UZu8tCds7W"><span style="font-size: 16px;">On <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> market charts, users can add EMAs with different periods to any trading pair, such as the 20-day, 50-day, 100-day, or 200-day EMA, to observe short-term momentum and long-term trends.</span></div><div class="ace-line ace-line old-record-id-QYoWdvkvxosP4IxzVa7uHcVNsbb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;95860379-289f-438d-8e53-eb4ec4622c26&quot;,&quot;height&quot;:641,&quot;width&quot;:1280,&quot;currHeight&quot;:641,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:641,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FEueFbLdXhoAo4QxQcAJuL03Ks7b%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;EueFbLdXhoAo4QxQcAJuL03Ks7b&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:246270,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-G9nAdFWgDoiS7vxbLVNubxSXsKf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174623414UKE8uQ1ei0ilm8.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJFdWVGYkxkWGhvQW80UXhRY0FKdUwwM0tzN2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRzluQWRGV2dEb2lTN3Z4YkxWTnVieFNYc0tmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9FdWVGYkxkWGhvQW80UXhRY0FKdUwwM0tzN2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/EueFbLdXhoAo4QxQcAJuL03Ks7b/?mount_node_token=G9nAdFWgDoiS7vxbLVNubxSXsKf&amp;mount_point=docx_image" data-width="1280" data-height="641" data-lark-image-uri="drivetoken://EueFbLdXhoAo4QxQcAJuL03Ks7b" data-lark-image-width="1280" data-lark-image-height="641" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-WCSGd5sako0XN3xCVQ5u0Qxpsyd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-B4KrdU61PoEOWAxlsFhuJXINsNe"><strong>2. Exponential Moving Average Formula</strong></h2><div class="ace-line ace-line old-record-id-XO9adq1Z3oPWmXxJqtmuOGMrs18"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XOsNdN9Tbokk9dxF2tVu8U0Hsqb"><span style="font-size: 16px;">The exponential moving average is calculated in three steps:</span></div><div class="ace-line ace-line old-record-id-BbE2dDyQUonREJx284RurdJ7sgc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XkkSdE73zoSCysxNXQNu4jjtsmh"><strong style="font-size: 16px;">Step 1: Calculate the initial value</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-BxL1doc5mowBAdxR88Wu9nt6ste"><span style="font-size: 16px;"> First, calculate the simple moving average for the selected period as the starting value. For example, for a 20-day period, add the closing prices from the previous 20 days and divide the total by 20.</span></div><div class="ace-line ace-line old-record-id-J1WLdDQIGoqO1dxp30puagVCsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YuXhdokKdoFjWqxQV8ZuCOrCsgb"><strong style="font-size: 16px;">Step 2: Calculate the smoothing factor</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-N7U1dIiMSod8hAxC6uAuA5INs7e"><span style="font-size: 16px;"> Smoothing factor = 2 / (Number of periods + 1)</span></div><div class="ace-line ace-line old-record-id-N9mCdEfhxoYXXGxwTnCuZAKNsLf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ljr1dTJQIoKEwFxscyeuo3KLsx9"><span style="font-size: 16px;">For a 20-day period, the smoothing factor is approximately 0.095.</span></div><div class="ace-line ace-line old-record-id-X82fdHUlJovHHax2V1cuBBNXsGc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QNeTd2WiFonIlvxg75SueynLseh"><strong style="font-size: 16px;">Step 3: Calculate the current EMA</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-KDpQdyk9ZoPn0bxOiRouWf3Ssxg"><span style="font-size: 16px;"> Current EMA = (Current closing price - Previous EMA) × Smoothing factor + Previous EMA</span></div><div class="ace-line ace-line old-record-id-EEyDd7I6voaHymxJNs0uj2plsRg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PTXqdmB5ZoToRzxYFkruJrimsYe"><span style="font-size: 16px;">As shown in the formula, the EMA uses recursive calculation. Each new value is based on the previous day's EMA, preserving historical trend information while giving greater influence to the latest price.</span></div><div class="ace-line ace-line old-record-id-Pvd4dzH5HoIZzLx8jPhuNwU7sUt"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C1ibdzwdgos3JyxwmZau8BBqsRb"><span style="font-size: 16px;">The shorter the period, the larger the smoothing factor and the faster the EMA responds to price changes.</span></div><div class="ace-line ace-line old-record-id-ZqHhd1tsBop3rzxFNDIu1m3Mskd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-BnnHd3GvjoRhp2xZg4luGY3dsff"><strong>3. Differences Between EMA and SMA</strong></h2><div class="ace-line ace-line old-record-id-ZG9RdWiB4oARAux3t6Eu3Sjjscf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OasHdWapuoLCfOxd7OFufxfYsef"><span style="font-size: 16px;">A simple moving average assigns equal weight to every price within the selected period, while an exponential moving average gives greater weight to more recent prices.</span></div><div class="ace-line ace-line old-record-id-KUUsd1jyroEfEMxOEb1u0Sj8sNe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Zblbd5n41on2iaxUolruzqdnsGh"><span style="font-size: 16px;">The main differences are as follows:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-ProgdALKwo0D7UxtV36ug1fYsXc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Sensitivity:</strong> The EMA reacts more quickly to recent price changes and has less lag, while the SMA responds more slowly and produces a smoother curve.</span></div></li><li class="ace-line ace-line old-record-id-JMlddgQygoh9uZxstPDuUkDfs2f" data-list="bullet"><div><span style="font-size: 16px;"><strong>Suitable market conditions:</strong> The EMA is more suitable for short-term trading and highly volatile markets, while the SMA is more suitable for observing long-term and relatively stable trends.</span></div></li><li class="ace-line ace-line old-record-id-VA1XdYn5KonGjfxaLrauVBTGsAf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Signal quality:</strong> EMA signals appear earlier but are also more likely to produce false signals. SMA signals appear later but are generally more stable.</span></div></li></ul><div class="ace-line ace-line old-record-id-MSAkdOrtMoy2ZExvkXyuCP88sVe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WEIzdQJdpo8pG9xho6uu93UJsif"><span style="font-size: 16px;">Neither indicator is universally better. In actual trading, many traders monitor both the EMA and SMA to gain a more comprehensive view of the market.</span></div><div class="ace-line ace-line old-record-id-BVU3dAlzgo3uDcxdpOJu9OAcs4d"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-ONGmdg5uFoaCsYxCkYNuTrN8s3f"><strong>4. How to Use the Exponential Moving Average Indicator in Trading</strong></h2><div class="ace-line ace-line old-record-id-RFDidXwORoD16vxEEKMu209EsBf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HEDndCOlhoV6V7xVNYIuhI5Jsue"><span style="font-size: 16px;">4.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-OaEpded8eo6u1LxqlsduYB3Osag"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XO4Vd07opowA4QxPZjKuzqOzsvg"><span style="font-size: 16px;">This is the most basic use of the EMA.</span></div><div class="ace-line ace-line old-record-id-LmBCd2mzmoxXG5x7tJHu9OPksMg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-W9widCaBSoXzDExG2hBug1b8saf"><span style="font-size: 16px;">When the price is above the EMA and the EMA is sloping upward, the market is generally considered to be in an uptrend, and traders may look for buying opportunities.</span></div><div class="ace-line ace-line old-record-id-Y8UEd0TWio3zAsxPIK4uaDNUsPF"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Fy2Gd7SJZoqHSSxmHsPu4b4Asig"><span style="font-size: 16px;">When the price is below the EMA and the EMA is sloping downward, the market is generally considered to be in a downtrend. Traders should be cautious about buying at higher prices or may consider exiting their positions.</span></div><div class="ace-line ace-line old-record-id-Xinld8WcjoR05mxpP1UuvRdUsKO"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HcMFdUZJfordPxxBbFGuAL2fsub"><span style="font-size: 16px;">4.2 Use the EMA as dynamic support and resistance</span></h3><div class="ace-line ace-line old-record-id-VgGed3C9doPjv4xDnoluOVGNsvc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PY25dea7woeY5ixEVg2uB2tls4b"><span style="font-size: 16px;">During an uptrend, a rising EMA often acts as a dynamic price floor. When the price pulls back toward the EMA, it may find support, providing a common reference point for potential buying opportunity.</span></div><div class="ace-line ace-line old-record-id-BrrhdF0NgoTlDQx8gacucVKbsWx"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RoEcdmS6Bo1NbkxSbt0unDtQsiV"><span style="font-size: 16px;">During a downtrend, a declining EMA may act as a dynamic ceiling. When the price rebounds toward the EMA, it may encounter resistance.</span></div><div class="ace-line ace-line old-record-id-R5osdvZYdozA4Ux4QVeuOtKBsIe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OkH6dOlbEoO7c1xJdBEu4uh1sDg"><span style="font-size: 16px;">4.3 Dual EMA crossover strategy: Golden cross and death cross</span></h3><div class="ace-line ace-line old-record-id-ONaldD0AcoYt2qx4ItGu3rohs2v"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VO5vdEWcyoNQcVxUYBRuczc8srb"><span style="font-size: 16px;">Combining two EMAs with different periods is a classic trading strategy:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-AZc2dBNx5oTeWDx4HaBunMaXsuc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Golden cross:</strong> A short-term EMA, such as the 20-day EMA, crosses above a longer-term EMA, such as the 50-day or 200-day EMA. This is considered a bullish signal and may indicate the beginning of an uptrend.</span></div></li><li class="ace-line ace-line old-record-id-ZXbsdSfX9o24bmxBsfKuNDY8s8c" data-list="bullet"><div><span style="font-size: 16px;"><strong>Death cross:</strong> A short-term EMA crosses below a longer-term EMA. This is considered a bearish signal and may indicate the beginning of a downtrend.</span></div></li></ul><div class="ace-line ace-line old-record-id-KzkedSwyloleD8xALCqucfszsfb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EO8gdTiQqoXySqxQbFSuf8UksxA"><span style="font-size: 16px;">The crossover between the 50-day and 200-day EMAs is commonly used as an important reference for identifying medium- to long-term shifts between bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-OUUndBuvto5Uwox9tdTuwP4Dsd0"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YLaed3k9kobIIlxqGQwuZEZDsTd"><strong>5. How to Set Up the Exponential Moving Average on MEXC</strong></h2><div class="ace-line ace-line old-record-id-NOrJd02XLohQxIx9Rmqu6N50sSb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OWBYdbITDo3d9XxwSmJuMOZdsfc"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website</a> → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → EMA</span></div><div class="ace-line ace-line old-record-id-S6eXdYl85o2CoWxPPpfuFxY3sRe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Xk3rd05Dno9gJwxTvvUuHFR4sSb"><span style="font-size: 16px;">Users can display multiple EMAs with different periods at the same time and combine them with other tools, such as the Relative Strength Index and Bollinger Bands, for more comprehensive analysis.</span></div><div class="ace-line ace-line old-record-id-QARXdLWHSoPOTXxr7fjuZ5iNs3g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-H1MrdAfpdoKglqxUtN6uHq1dsZC"><span style="font-size: 16px;">Beginners are advised to start with small amounts and gradually become familiar with how the indicator performs under real market conditions.</span></div><div class="ace-line ace-line old-record-id-EqILdEWfvoOr1QxQ1VquERXNsFf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LLrZda2HKojDQKxvnIyuoiyWsag"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-XLTOd7nirohYdUxGj6MufFyQsJc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;d98fb595-ae45-49af-9967-6b65387feba7&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FG0BzbOPmZoxlG5xAxBhudNlGsCb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;G0BzbOPmZoxlG5xAxBhudNlGsCb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:281242,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-S49EdamBLoYGYqx6Fm0uiRarsHh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174623140OSGjTZNXSlW922.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJHMEJ6Yk9QbVpveGxHNXhBeEJodWRObEdzQ2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiUzQ5RWRhbUJMb1lHWXF4NkZtMHVpUmFyc0hoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9HMEJ6Yk9QbVpveGxHNXhBeEJodWRObEdzQ2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/G0BzbOPmZoxlG5xAxBhudNlGsCb/?mount_node_token=S49EdamBLoYGYqx6Fm0uiRarsHh&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://G0BzbOPmZoxlG5xAxBhudNlGsCb" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-SMdCdfAAGoSrXHxUoFsuRZb8srf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-VT8xdwZHdonw1nxJGRJuA5Rysmb"><strong>6. Limitations of the Exponential Moving Average</strong></h2><div class="ace-line ace-line old-record-id-E3SPd0JfCovLhMxBE2YuyFPAsAT"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZGe2dk5ZBobfdSxLTdTuqTo6sEf"><span style="font-size: 16px;">Although the EMA is highly practical, it also has several limitations:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-WskRdv1JHobcsrxFDwFuRYYjsDK" data-list="bullet"><div><span style="font-size: 16px;"><strong>Based on historical data:</strong> The EMA only reflects price movements that have already occurred and cannot predict future prices.</span></div></li><li class="ace-line ace-line old-record-id-CqzzdUlEvoIHvIxKd8ZuRqEtsmh" data-list="bullet"><div><span style="font-size: 16px;"><strong>Recency bias</strong><strong>:</strong> Because it places greater emphasis on recent data, it may produce misleading signals when the market is extremely overbought or oversold.</span></div></li><li class="ace-line ace-line old-record-id-G9ladRkduoxVbrxo8aUurvH3sAd" data-list="bullet"><div><span style="font-size: 16px;"><strong>False signals:</strong> In sideways markets, frequent price movements above and below the EMA may create false trading signals.</span></div></li></ul><div class="ace-line ace-line old-record-id-UdpOdBWZDozNeHxyN4ouJr4Cs2e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EVafdqkMZoOsDwx3M2ouM8lcsFk"><span style="font-size: 16px;">The EMA should therefore be used together with other technical indicators, fundamental analysis, and strict risk management. Traders should not rely on any single indicator when making trading decisions.</span></div><div class="ace-line ace-line old-record-id-SMd9dDH4ko4jgyxb7FBu7DSEsJh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-ZT1ZddILQogTw5xrlXzunfuys9m"><strong>7. Exponential Moving Average FAQ</strong></h2><div class="ace-line ace-line old-record-id-DiURdgGxGoT6ogxycwxunqXqs5e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IvAad4RDVoyWryxSTBfukj8csRe"><span style="font-size: 16px;">7.1 How do I use an exponential moving average?</span></h3><div class="ace-line ace-line old-record-id-EjTqdPbn0oeRitxvegtuc0aesqb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Lg9sdt1gIoPSNaxOu1tuspiTsHe"><span style="font-size: 16px;">Observe the relationship between the price and the EMA to identify the trend.</span></div><div class="ace-line ace-line old-record-id-EF3odncPoobj6UxJKSSuKOrIsse"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A9SIdcn5go6fv5xaIljucfbTsvE"><span style="font-size: 16px;">When the price is above the EMA and the EMA is rising, the market is generally in a bullish trend. When the price is below the EMA and the EMA is declining, the market is generally in a bearish trend.</span></div><div class="ace-line ace-line old-record-id-H6DvdyG94oY8I5xO9VLuSQgNsAb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SoXzdUtwfo8hMGx4T0buGogPs0c"><span style="font-size: 16px;">The EMA can also be used as dynamic support or resistance to help determine potential entry and exit points.</span></div><div class="ace-line ace-line old-record-id-OtYedDjCWoeCdIxVPcDurP52sHh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-USwKd06B4oXvsIxJZ44u4VkysUe"><span style="font-size: 16px;">7.2 How do I use the 50-day and 200-day EMAs?</span></h3><div class="ace-line ace-line old-record-id-XTI1dEuW1o4jvDxRxGXuWYw6sJb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RQOQd5i6qoqItkx3btRumQyDsLc"><span style="font-size: 16px;">The 50-day EMA represents the medium-term trend, while the 200-day EMA represents the long-term trend.</span></div><div class="ace-line ace-line old-record-id-JTHAdefKJo5WEPxAvOjup5josIe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FJj2duoD0owmXRxsuYLuS1sUsnM"><span style="font-size: 16px;">When the 50-day EMA crosses above the 200-day EMA, it forms a golden cross and is considered a bullish signal. When it crosses below the 200-day EMA, it forms a death cross and is considered a bearish signal.</span></div><div class="ace-line ace-line old-record-id-WfhSdQqiFoplVJxGT6vuZxFfsqc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MsnddSH1koAUJ5xl46MumKoUsWh"><span style="font-size: 16px;">These crossovers are commonly used to identify changes between bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-TfxXdfkz4oO3RUxhOeduDPGFsgr"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Wvb9d9KbwoN0pJxAPJruK9Lws4e"><span style="font-size: 16px;">7.3 How is the exponential moving average calculated?</span></h3><div class="ace-line ace-line old-record-id-P7Urd9DflofjgDx5eeouvBr7sZe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Agihdf3N1oJrc7xgsNhuP5lhsVd"><span style="font-size: 16px;">Current EMA = (Current closing price - Previous EMA) × Smoothing factor + Previous EMA</span></div><div class="ace-line ace-line old-record-id-JcNodgd20oVfcTxYDImuHFMVsDd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-AGwQdWZyOoQq1ix9SCZuxw7qsfc"><span style="font-size: 16px;">Smoothing factor = 2 / (Number of periods + 1)</span></div><div class="ace-line ace-line old-record-id-JkMqd8iAZoFU0xxoaZNuucX1sAf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HdRdd9dRpolPDyxwsziuS8FMslc"><span style="font-size: 16px;">7.4 What is the difference between an EMA and an SMA?</span></h3><div class="ace-line ace-line old-record-id-Mv05dNDdaoy4nNxJ73SuTlCWswb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-P3GXdZXCpoDGuwxXalfu82Tzs5b"><span style="font-size: 16px;">An EMA assigns greater weight to recent prices, responds more quickly, and has less lag.</span></div><div class="ace-line ace-line old-record-id-BD4OduxUPotLdOx5QlEu7M1gsSV"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B2oPdrsDfoibPbxkS0mu9TFqstf"><span style="font-size: 16px;">An SMA gives equal weight to all prices within the selected period, producing a smoother curve but responding more slowly to price changes.</span></div><div class="ace-line ace-line old-record-id-V6yOdWcakoF7Czx4YCKusVwOs6b"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Urd5dNW4dovHqSxtMXfuwlCisyb"><span style="font-size: 16px;">7.5 What is the 9-day EMA in trading?</span></h3><div class="ace-line ace-line old-record-id-Tb2adLvCEo9SoqxkijTu6cRMsyb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UtwEdf66BoeUpPxkcGPuac2esSb"><span style="font-size: 16px;">The 9-day EMA is a fast-moving average commonly used by short-term traders to capture short-term price momentum.</span></div><div class="ace-line ace-line old-record-id-JrPodVFsvoSwqcxNM64u37u4sjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X6hQdxYDAoo7UuxKPBOu0g9Cshb"><span style="font-size: 16px;">It is often combined with the 20-day or 21-day EMA to identify crossover signals.</span></div><div class="ace-line ace-line old-record-id-LA82d1P6Jo3bFxxDVQHuTi8ZsXe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DRfMd2emgo1WiTx7vCOu3jPTsbe"><span style="font-size: 16px;">7.6 How do professional traders use the EMA?</span></h3><div class="ace-line ace-line old-record-id-AH1od0F2aorNLSxgSBtupjgVs1g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WoQVdMARWoKcIMxLqgFueD5xsRd"><span style="font-size: 16px;">Professional traders usually combine multiple EMAs with different periods and use them together with trading volume, momentum indicators, and support and resistance analysis.</span></div><div class="ace-line ace-line old-record-id-XmTcdRcmxomOlMxIrcnuSNMtsjg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TtWZdgkzsokv3mxmSp7uLeyOsde"><span style="font-size: 16px;">They may also backtest their strategies using historical data and apply strict stop-loss settings to control risk.</span></div><div class="ace-line ace-line old-record-id-NAwidlQkQoBI4pxWVREuAnIlsgl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WMIodDkxXo07twx3xKWuSeyEsJf"><span style="font-size: 16px;">The exponential moving average is a practical trend indicator that balances responsiveness and stability. Whether it is used to identify market direction, locate support and resistance, or build golden cross and death cross strategies, it can provide valuable references for trading decisions.</span></div><div class="ace-line ace-line old-record-id-FA1kdn95IoYnFgx10IruAwCCsie"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-GqNVdkemQoieeOxkITBu7ADPsTd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-WB3JdTdBmocl9CxIf3zun8Uqs2f" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-BGKNdtuDCoL0NcxozYwukbARsmc" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">How to Use Bollinger Bands in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-NP16dwqkHoZKO4xELdNuGivfsUd" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-LcYpdJLy7ofqzzxbxsUuf8EMsde" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-SpjTdoEw9ou53GxSaeluZUyasXe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YaqWdXlZNoQAZ9xGeA5ufzFJsqd"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use Bollinger Bands in Trading: A Complete Beginner's Guide

<div data-page-id="RseVdQloyoLvanxvxluuy3GBs28" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-TNxodNnlPovlhGxzVc1uPqOrsec"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-NBWCdnXLeoOTLuxoDqRuXRe0sAI" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands are a volatility-based technical indicator developed by John Bollinger in the 1980s. They consist of a middle band, an upper band, and a lower band.</span></div></li><li class="ace-line ace-line old-record-id-ESqsdpBOroqFmyxYP9ou2GKosac" data-list="bullet"><div><span style="font-size: 16px;">The standard Bollinger Bands setting uses a 20-period simple moving average with upper and lower bands positioned two standard deviations away. These parameters can be adjusted according to different trading styles.</span></div></li><li class="ace-line ace-line old-record-id-I5MNdZaTLoprzfx5PDauutDMsZd" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands can help identify potential overbought and oversold conditions, volatility contractions known as squeezes, and potential shifts in trend momentum.</span></div></li><li class="ace-line ace-line old-record-id-AuuIdeR81oFqwExDg6ruKzbrsLe" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands should not be used alone. Combining them with indicators such as RSI and MACD may improve signal accuracy.</span></div></li><li class="ace-line ace-line old-record-id-QEYtduHYUoah9WxMGUcuEuUdsxJ" data-list="bullet"><div><span style="font-size: 16px;">Users can add Bollinger Bands to candlestick charts on MEXC and use them together with appropriate risk management when trading.</span></div></li></ul><div class="ace-line ace-line old-record-id-DVp4d5NRFo6gJmxKuhRusPh3snq"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-BIffdPsVooWMJDxRJ1Xu4GUxsec"><strong>1. What Are Bollinger Bands?</strong></h2><div class="ace-line ace-line old-record-id-C49gdG4zLowLLQxC7UJu9Jk7sGc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BiZfdmNeqoPfAGxYB7TuC5etsAb"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/bollinger-bands-30297">Bollinger Bands</a> are a volatility-based technical analysis tool developed by John Bollinger in the 1980s to help traders evaluate price movements and market volatility. The indicator consists of three lines: a moving average in the middle, known as the middle band, and an upper band and lower band positioned a certain number of standard deviations above and below it.</span></div><div class="ace-line ace-line old-record-id-UdQXd8VrJo9z8qxDcOKunKSTs3b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GkkodL3GcoQCPexYKb3urLULslh"><span style="font-size: 16px;">The core principle of Bollinger Bands is to assess whether the current price is relatively high or low based on its position within the three bands. The distance between the bands also provides a visual indication of market volatility. Wider bands indicate increasing volatility, while narrower bands indicate decreasing volatility. Bollinger Bands are available as a built-in indicator on both Spot and Futures trading charts on MEXC.</span></div><div class="ace-line ace-line old-record-id-UmfKdoYLAo1Sl1xvCfBu0fy1sLf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;f2dffd63-5b63-496f-8fe2-2a03353f3bd9&quot;,&quot;height&quot;:643,&quot;width&quot;:1280,&quot;currHeight&quot;:643,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:643,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMIahbRRLxozUKvxcwQquBI1RsYd%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;MIahbRRLxozUKvxcwQquBI1RsYd&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:256728,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-WWl1di8FzolKa7x9gvYufF35sbf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174922945eR5Ca8rLhwb8jO.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNSWFoYlJSTHhvelVLdnhjd1FxdUJJMVJzWWQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiV1dsMWRpOEZ6b2xLYTd4OWd2WXVmRjM1c2JmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NSWFoYlJSTHhvelVLdnhjd1FxdUJJMVJzWWQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/MIahbRRLxozUKvxcwQquBI1RsYd/?mount_node_token=WWl1di8FzolKa7x9gvYufF35sbf&amp;mount_point=docx_image" data-width="1280" data-height="643" data-lark-image-uri="drivetoken://MIahbRRLxozUKvxcwQquBI1RsYd" data-lark-image-width="1280" data-lark-image-height="643" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-RBntdXrCmoLlh8xYODFuFawXsXd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-X8XVdUgo5oEamRx9e4UuLDMjsWb"><strong>2. Components and Calculation of Bollinger Bands</strong></h2><div class="ace-line ace-line old-record-id-Fc1PdnLlyoOnhaxvTZGuDybWsuy"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-M8C9dN0PGoac0Yxok0tuomTUsSe"><span style="font-size: 16px;">Bollinger Bands consist of three components:</span></div><div class="ace-line ace-line old-record-id-Rp1QdBpc0oqzQuxsreruw7Easbd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RgS3dkCcAoiwLZxgW4NuIqKishc"><span style="font-size: 16px;"><strong>Middle band:</strong> Usually a 20-period simple moving average, calculated by adding the closing prices from the most recent 20 periods and dividing the total by 20. It serves as the baseline for price movements.</span></div><div class="ace-line ace-line old-record-id-QUBOd5jwXodXfvxs57wuTmSEsnh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HqJydaJHlo1LCBxnlXVugSXAsVf"><span style="font-size: 16px;"><strong>Upper band:</strong> The middle band plus two standard deviations, forming the upper volatility band.</span></div><div class="ace-line ace-line old-record-id-RBrsdm9XDoqJe9x6Hu8uxtcIsxe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UpBGdKfiWo1pKYxgYAHuZfJksog"><span style="font-size: 16px;"><strong>Lower band:</strong> The middle band minus two standard deviations, forming the lower volatility band.</span></div><div class="ace-line ace-line old-record-id-Lyy6dGaPFosdEdxaR40uFC5dsJg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NHffdK2n9obZOtxWR7Eur2tGsWd"><span style="font-size: 16px;">Because standard deviation automatically adjusts as price volatility changes, Bollinger Bands can adapt dynamically to different market conditions. This is their main advantage over fixed-channel indicators.</span></div><div class="ace-line ace-line old-record-id-Aib0dPnt5orZQXxdyE3uMKNysFd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-KSdIdBQg0oSZ8qxplbuu0YvGsbf"><strong>3. How to Trade With Bollinger Bands: Three Core Uses</strong></h2><div class="ace-line ace-line old-record-id-Y8B1djySiosc4vxpSZiuSbhLsoc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KjLkdHmpPo71TqxywzJuYadusKf"><span style="font-size: 16px;">3.1 Identify volatility squeezes and monitor breakouts</span></h3><div class="ace-line ace-line old-record-id-SAFXdpxCZotgqnxXcPFupMS8snd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jw1MdbUGQoGm0xx0wbbuh4ewsNs"><span style="font-size: 16px;">When the upper and lower bands narrow significantly and move closer together, this is known as a Bollinger Band squeeze. It indicates that market volatility is relatively low.</span></div><div class="ace-line ace-line old-record-id-GXasdHENPokTC6xnA31uqKXGs77"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-T2CWdNYzJoUgiVx3jxruKucfs0f"><span style="font-size: 16px;">Periods of unusually low volatility are often followed by renewed volatility. Traders may wait for the price to break out of the squeeze. A break above the upper band may provide a potential long entry, while a break below the lower band may provide a potential short entry.</span></div><div class="ace-line ace-line old-record-id-OFbTdPFgOoPbL1xrKtPuQdPBstf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DZNPdZ4qvoOmMlxT88wuc6nAsgf"><span style="font-size: 16px;">A stop-loss may be placed on the opposite side of the breakout pattern.</span></div><div class="ace-line ace-line old-record-id-D5C4d2y46oTeVoxsgYWuGFZ0scg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OJy6d1LN4oLeOfxvi7UuoUClsyh"><span style="font-size: 16px;">3.2 Identify overbought and oversold conditions</span></h3><div class="ace-line ace-line old-record-id-Oa59dF1CxoJZcjxdwjLuAo0Ystc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GmzidXVy3oWqwMxJ0x7uWLIDs6f"><span style="font-size: 16px;">When the price touches or moves above the upper band, it may indicate short-term overbought conditions. When the price touches or falls below the lower band, it may indicate short-term oversold conditions.</span></div><div class="ace-line ace-line old-record-id-BAN8dwnr8oshtsxvMscuY6las9f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TY0GdhfJWoMD41xhWhAuGFaMsZb"><span style="font-size: 16px;">In sideways markets, the price often moves between the upper and lower bands and returns toward the middle band. Traders may therefore look for potential buying opportunities near the lower band and selling opportunities near the upper band.</span></div><div class="ace-line ace-line old-record-id-Nw1ZdNX4UoSD1rx5Z9luZYglsDg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YmKLddCauozBYgxi1sNu2hnjsGd"><span style="font-size: 16px;">However, John Bollinger has emphasized that touching a band does not constitute a trading signal by itself. During a strong trend, the price may continue moving along the upper or lower band, a pattern commonly known as "walking the bands."</span></div><div class="ace-line ace-line old-record-id-NxtudtzD5oxCZmxItiiuzrT5s9g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-L57YdGWsMore84xrr1ius4rQs1e"><span style="font-size: 16px;">Trading against the trend under these conditions can carry significant risk. Traders should wait for additional confirmation signals before entering a position.</span></div><div class="ace-line ace-line old-record-id-HX9tdxHOVoMoHgx7chquBIqCsrc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-AHASdDg6Ko0YqxxAcXguak5Jssb"><span style="font-size: 16px;">3.3 Confirm trend direction and potential trend endings</span></h3><div class="ace-line ace-line old-record-id-KwFWdLlRqoGmEWxEaHIuKXmMsrh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GLsIdNNUeoCQP9xMPRlu2b71s7d"><span style="font-size: 16px;">During an uptrend, the price usually remains above the middle band, which may act as dynamic support. During a downtrend, the price generally remains below the middle band, which may act as dynamic resistance.</span></div><div class="ace-line ace-line old-record-id-AfR4dVAOroDzh2xw015uXAbosAc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F1eldOhZIov99IxjU7GuQKBbsKg"><span style="font-size: 16px;">At the beginning of a strong trend, the upper and lower bands often expand in opposite directions. When the band on the opposite side of the trend begins to turn and narrow again, it may indicate that the current trend is losing momentum or approaching an end.</span></div><div class="ace-line ace-line old-record-id-BqMcdYRAvoCCcoxXNfWuQZ47sQe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-PUjtdDctVo1JqOxsBWeuDRYOsHh"><strong>4. Indicators to Use With Bollinger Bands</strong></h2><div class="ace-line ace-line old-record-id-V5cMdwc0OoKLqWx93fiuGICUstb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XQaXdIsX5o8HeexeVseu6xtJsbh"><span style="font-size: 16px;">Bollinger Bands are based entirely on price data and may generate false signals when used alone. Traders may combine them with the following tools for confirmation:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-KKd8d6A7foriPNxVSv9u7opYsAc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Relative Strength Index (RSI):</strong> Helps confirm overbought and oversold conditions and filter out false reversal signals.</span></div></li><li class="ace-line ace-line old-record-id-AebqdbeSLoKy3qxZG1huxaozstc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Moving Average Convergence Divergence (MACD):</strong> Tracks momentum changes and helps confirm trend direction.</span></div></li><li class="ace-line ace-line old-record-id-JnRBdq2LKo7XFfxZoLSu7bABsjg" data-list="bullet"><div><span style="font-size: 16px;"><strong>Volume indicators:</strong> Help verify whether a breakout is supported by sufficient trading activity. Breakouts with low volume are more likely to be false.</span></div></li></ul><div class="ace-line ace-line old-record-id-AOsGdZZE8o6N7VxllaTuU6Bes0e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-MAZ7d4x4coeh8SxiSuHuBs8dslb"><strong>5. Risk Management Tips for Using Bollinger Bands on MEXC</strong></h2><div class="ace-line ace-line old-record-id-DV5sdYomlo5KozxVOBGu5G03scf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ELOJdw4QjoU9yJxXX0JuufPhsph"><span style="font-size: 16px;">Regardless of the indicator used, risk management remains essential to trading. When using Bollinger Bands on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, traders should consider the following:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Q6iKdda4Oo1xplx0YV7uGhJUsRd" data-list="bullet"><div><span style="font-size: 16px;">Set stop-loss orders appropriately. A stop-loss for a long position may be placed below the lower band, while a stop-loss for a short position may be placed above the upper band.</span></div></li><li class="ace-line ace-line old-record-id-LFgRdyX2LocsanxBqBNuxb6SsFe" data-list="bullet"><div><span style="font-size: 16px;">Adjust position size according to the width of the bands. The greater the volatility, the smaller the position should generally be.</span></div></li><li class="ace-line ace-line old-record-id-AS63dkEu3oLuXDxqmKKue2b4sNU" data-list="bullet"><div><span style="font-size: 16px;">Avoid trading too frequently during periods of low volatility.</span></div></li><li class="ace-line ace-line old-record-id-ShucdPuzLoDcVUx10h1ubIiVssc" data-list="bullet"><div><span style="font-size: 16px;">Remember that technical analysis is based on historical data and cannot guarantee future results. No indicator can ensure profits.</span></div></li></ul><div class="ace-line ace-line old-record-id-Dj3CdlsZBox2tVxP2rBuyrKEsbd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FIlydgwI6oAB6hxzbE0ukss6sKe"><strong>6. Bollinger Bands FAQ</strong></h2><div class="ace-line ace-line old-record-id-K8DydTss2orFhixjWVUuU7pIsVb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OTCedCgEJoL5HjxgeCjusqsZsih"><span style="font-size: 16px;">6.1 How can I use Bollinger Bands effectively?</span></h3><div class="ace-line ace-line old-record-id-QuEVd26kQojFgnxm1VZuf3oWsAd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YzrTdcugZov1FMxaXaduR5ZSsKe"><span style="font-size: 16px;">Bollinger Bands can be used to identify volatility squeezes, overbought and oversold areas, and trend direction.</span></div><div class="ace-line ace-line old-record-id-Y877dy2UAohKt1xJM1pulyklsvd"><span style="font-size: 16px;">Signals should be confirmed with tools such as the Relative Strength Index. Traders should not enter a position solely because the price touches one of the bands.</span></div><div class="ace-line ace-line old-record-id-J1pQdRNJ4oDebHxXe9auaXdBsdc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OXVOd9NwFoxPntxxGSnunIYdsKe"><span style="font-size: 16px;">6.2 What are the best Bollinger Bands settings?</span></h3><div class="ace-line ace-line old-record-id-Xlp5dwdIsobBCgxvnnIu3HA8soh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ELxcdCRfdoa43vxLmtdu0xSgshh"><span style="font-size: 16px;">The standard setting is a 20-period moving average with bands positioned two standard deviations away. This setting is suitable for most trading scenarios.</span></div><div class="ace-line ace-line old-record-id-UcXzdTrRFoiteExrGXguAxi8sAd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KULedlV7Zoh46RxyahvuDJKWsBh"><span style="font-size: 16px;">Short-term traders may use a 10-period setting with 1.5 standard deviations, while longer-term traders may use a 50-period setting with 2.5 standard deviations.</span></div><div class="ace-line ace-line old-record-id-RjXedhCLSoKJyOxW4pYuIpDvsOp"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Xv35dx2dFo20MVxSzdwuSVHLsUe"><span style="font-size: 16px;">6.3 Which timeframes are suitable for Bollinger Bands?</span></h3><div class="ace-line ace-line old-record-id-GIQmdWAYmoe6UrxZS1Nusm5qssg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V8SmdmCUAoLpW8xXyWCuAOMXs2e"><span style="font-size: 16px;">Bollinger Bands can be used on any timeframe.</span></div><div class="ace-line ace-line old-record-id-StMXdWtLboldRyx68xuugmi2sqc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NtMPdQDD6opqzoxhrebuu2FUsOd"><span style="font-size: 16px;">Day traders commonly use charts ranging from five minutes to one hour, while swing traders often use four-hour and daily charts. Signals on longer timeframes are generally considered more reliable.</span></div><div class="ace-line ace-line old-record-id-MWird5q66oNbTAxKa1buJMSZsPo"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-LPDtdQflJoFVXjxjs1ruQfr0sfd"><span style="font-size: 16px;">6.4 Are Bollinger Bands a good indicator?</span></h3><div class="ace-line ace-line old-record-id-KT5adcomMoFb2sxpmy5uUZhSs5f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LjWYdSJVYoF421xve2Yuf1UmsPh"><span style="font-size: 16px;">Bollinger Bands are among the most widely used volatility indicators because they are intuitive and adapt to changing market conditions.</span></div><div class="ace-line ace-line old-record-id-GDaYdqafsovYysxBcO4u9IvxsNc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UJ1mdUI77o1mLtx2czZu22JYsyb"><span style="font-size: 16px;">However, they are not a complete trading system and should be used together with other indicators and appropriate risk management.</span></div><div class="ace-line ace-line old-record-id-Ar1GdIPT1oZngsxw0NquBgIEsYM"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-R4oLdiQvLoRQduxVxJQujVrhsCg"><span style="font-size: 16px;">6.5 What is a Bollinger Bands day trading strategy?</span></h3><div class="ace-line ace-line old-record-id-RkMKda9khozLTExIjJGuJDtBsTc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DoYPdWLFkoI6CmxkMyNu60DgsIb"><span style="font-size: 16px;">A common approach in a sideways market is to buy near the lower band and sell near the upper band.</span></div><div class="ace-line ace-line old-record-id-M3UEdWS3BoXstvxShjyuiMbvsPd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Q2pVdBwI5oH6n3xAhi0ucxMysic"><span style="font-size: 16px;">Another approach is to enter in the direction of a breakout after a Bollinger Band squeeze, using the middle band or the opposite band as a potential target.</span></div><div class="ace-line ace-line old-record-id-E6yfdN5bMocerCxQ2dCuO7XIsie"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-TXT6dpvJsoEdNDxBdTzuCLBwsjb"><span style="font-size: 16px;">6.6 What are the best indicators to use with Bollinger Bands?</span></h3><div class="ace-line ace-line old-record-id-FzP4dwPOAoiR1AxPBnXuKgOWsht"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EH8xd8u4VowY4VxJDYQuLSGSsCh"><span style="font-size: 16px;">The Relative Strength Index, Moving Average Convergence Divergence, and volume indicators are commonly used with Bollinger Bands to help filter out false signals.</span></div><div class="ace-line ace-line old-record-id-QZrddv8I2oQ8P7xZ6qNuypiCsHd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PHNtdFeQyoCwNCxio3quV0t1slc"><span style="font-size: 16px;">6.7 How do I set up Bollinger Bands on MEXC?</span></h3><div class="ace-line ace-line old-record-id-NGagdC6B3osILvx0gQ9uvlonsPc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FIfndKuojoeGazxjejEuLRQfsCc"><span style="font-size: 16px;">Go to the MEXC Spot or <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> trading page, open the candlestick chart, and click Indicators. Search for and add Bollinger Bands, then customize the period and standard deviation settings as needed.</span></div><div class="ace-line ace-line old-record-id-IPzKdKbbVo0FE0x4QxHu8Rj7sYg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Mh3vdDKG5oZXoYxqvQ4uz9R3smf"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-Nr5zdHcOhotzrbxlHbUuJePKsTh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;94f8d154-a77b-4993-bd74-418e6160bcda&quot;,&quot;height&quot;:639,&quot;width&quot;:1280,&quot;currHeight&quot;:639,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:639,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJcCfbtu6Co6acGxLQv4ui1xJsmc%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;JcCfbtu6Co6acGxLQv4ui1xJsmc&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:275968,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-CdEbdnXiLoQL3IxxNAEuBD6PsCe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174922592a69klOrv0Wsy9D.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKY0NmYnR1NkNvNmFjR3hMUXY0dWkxeEpzbWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQ2RFYmRuWGlMb1FMM0l4eE5BRXVCRDZQc0NlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KY0NmYnR1NkNvNmFjR3hMUXY0dWkxeEpzbWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/JcCfbtu6Co6acGxLQv4ui1xJsmc/?mount_node_token=CdEbdnXiLoQL3IxxNAEuBD6PsCe&amp;mount_point=docx_image" data-width="1280" data-height="639" data-lark-image-uri="drivetoken://JcCfbtu6Co6acGxLQv4ui1xJsmc" data-lark-image-width="1280" data-lark-image-height="639" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-Aqn4dycBfodpRExX12Ku9zLOsbe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-AQVydL7WcozXaCxfSPSumo4ysof"><span style="font-size: 16px;">Recommended Reading:</span></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-JDdAddWCoonEVhxij9fuRcS2sSb" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-Ma6xdDjRGo51ayxmF7YuPYxFsfe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-Un65dge7ZouatExVnBLuBO1ts4d" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-Pni9dAQIJogSmkxQQExuqe2ysbe" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-YXzhdKi5DoXES1xkoARuvajDsBg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B96Mde570oYnrNx6qzAuXSJxsVc"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use the Parabolic SAR Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="DcxDdlSbKovkIFxmWB3ucxcXsFh" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-PEB3ds1m8oPJsIxpEkSuFLe3shf"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-U2TkdYl5ko5tpcx3enOuSJ9hs2X" data-list="bullet"><div><span style="font-size: 16px;">The Parabolic SAR is a trend-following indicator developed by J. Welles Wilder. It uses dots above or below the price to indicate the direction of the market trend.</span></div></li><li class="ace-line ace-line old-record-id-TonRdi4YLogiCqxnh7cu6YW6sAb" data-list="bullet"><div><span style="font-size: 16px;">Dots below the price indicate an uptrend, while dots above the price indicate a downtrend. A change in the position of the dots may signal a potential trend reversal.</span></div></li><li class="ace-line ace-line old-record-id-DVNJd3Se0oSL2CxAZcouhocqsZO" data-list="bullet"><div><span style="font-size: 16px;">The main uses of the Parabolic SAR include identifying trends, setting trailing stops, and finding potential entry and exit points.</span></div></li><li class="ace-line ace-line old-record-id-Ow3Jdm6EGoTLOYxaoLzu52WdsIg" data-list="bullet"><div><span style="font-size: 16px;">The indicator may generate false signals in sideways markets, so it is recommended to use it with tools such as the Average Directional Index.</span></div></li></ul><div class="ace-line ace-line old-record-id-ZJIbdLWnIo1UNHxWM8euniTYsPd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FM3bdbmSxos92gxnff9uxEcqsLc"><strong>1. What Is the Parabolic SAR Indicator?</strong></h2><div class="ace-line ace-line old-record-id-YvdZdi7N5o20ETxQTfcuyXWtsvg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NP2EdPmADoAMJPxGuM1uN0YusFg"><span style="font-size: 16px;">The Parabolic Stop and Reverse indicator, commonly known as the Parabolic SAR, is a trend-following tool developed by renowned technical analyst J. Welles Wilder, who also created the Relative Strength Index. The indicator appears on a chart as a series of dots above or below the price. It is named after the parabolic shape formed by these dots.</span></div><div class="ace-line ace-line old-record-id-FT2GdracVoRwcDxy5aQuFhVIsae"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZfSJdih1domJxIxzmG8uZIpKste"><span style="font-size: 16px;">The indicator is relatively easy to interpret. When the dots appear below the price, the market is considered to be in an uptrend, and traders may prefer to hold long positions. When the dots appear above the price, the market is considered to be in a downtrend, and traders may prefer to hold short positions or stay on the sidelines. When the price crosses the dots and the dots move to the opposite side of the price, it may indicate a potential trend reversal.</span></div><div class="ace-line ace-line old-record-id-U5NXdHq1ZoBgsxxa6uiuHlaksOb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;86cf9b30-69b6-4ffa-aeb8-d206e0cdfb4d&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXUnSbxJniownmHxGEUKuCgQPsxb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;XUnSbxJniownmHxGEUKuCgQPsxb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:211610,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-H9eOdwNXhoy3hXxw1tAumUPcs4b"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175226393ys1U1zkgFkHpHo.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYVW5TYnhKbmlvd25tSHhHRVVLdUNnUVBzeGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiSDllT2R3Tlhob3kzaFh4dzF0QXVtVVBjczRiIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YVW5TYnhKbmlvd25tSHhHRVVLdUNnUVBzeGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XUnSbxJniownmHxGEUKuCgQPsxb/?mount_node_token=H9eOdwNXhoy3hXxw1tAumUPcs4b&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://XUnSbxJniownmHxGEUKuCgQPsxb" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-VPs7dbFZIo0yu8xOcZmukB5gszg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-IvoTdlWvrobZOLxTTk7uxjFPsrf"><strong>2. Parabolic SAR Formula</strong></h2><div class="ace-line ace-line old-record-id-VUIFd0BKxoKsalxxwbyu8aS9s6e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TO5wdbvszoN9lLxtzqausYY8sth"><span style="font-size: 16px;">The Parabolic SAR calculation is based on two key variables: the extreme point and the acceleration factor.</span></div><ul start="1" class="list-bullet1"><li style="white-space:pre;" class="ace-line ace-line old-record-id-SpGIdOQL0oMHqGxFiamuhVNdseh" data-list="bullet"><div><span style="font-size: 16px;"><strong>Uptrend formula:</strong> Current SAR = Previous SAR + Previous acceleration factor × (Previous extreme point - Previous SAR)</span></div></li><li style="white-space:pre;" class="ace-line ace-line old-record-id-WFcmdprBvoB3ZixiHbauf0QvsLf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Downtrend formula:</strong> Current SAR = Previous SAR - Previous acceleration factor × (Previous SAR - Previous extreme point)</span></div></li></ul><div class="ace-line ace-line old-record-id-HCjbdyH19op1bWxykoguDex9sUg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LLIadPpXQodkRjxXAr3u0nSWsLd"><span style="font-size: 16px;">In an uptrend, the extreme point refers to the highest price. In a downtrend, it refers to the lowest price. The acceleration factor defaults to 0.02 and increases by 0.02 whenever a new extreme point is reached, up to a maximum of 0.20. As the trend continues, the indicator moves progressively closer to the price. Users do not need to calculate the indicator manually, as it can be loaded automatically on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC </a>market charts.</span></div><div class="ace-line ace-line old-record-id-NUR2dJIG4owMPwxpMKau6uKnsKb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-P7jidcuM6oHbZIxBorqunQJ8sPe"><strong>3. How to Use the Parabolic SAR Indicator in Trading</strong></h2><div class="ace-line ace-line old-record-id-EmszdcHbKoqR86xNH24uLqkgshc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-THAadds29orbT3xBNiYuVc88szd"><span style="font-size: 16px;">3.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-LDb0dg5Vaoeo3Kxs2ABu2BhJspg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SM96dp1nLoXp1mxSwGgu8S7gskf"><span style="font-size: 16px;">This is the most basic function of the indicator. After opening a chart, traders can quickly identify whether the current trend is bullish or bearish by observing whether the dots are above or below the price. This can help traders avoid taking positions against the prevailing trend.</span></div><div class="ace-line ace-line old-record-id-HHifdnM3soMkIPxaglRu2gLHsBd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-WcamdiIFMogAdjxO9anuZoaxsag"><span style="font-size: 16px;">3.2 Set a trailing stop</span></h3><div class="ace-line ace-line old-record-id-EjVWd2wgVodThnxZjwbu85wdslg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C7B6dkbWpo0tUKxZxnkuBCkysAg"><span style="font-size: 16px;">The Parabolic SAR can also function as a dynamic trailing stop. During an uptrend, the dots move higher as the price rises. Traders may place a stop-loss at the latest dot, helping them lock in profits while the trend continues and exit when the trend breaks down.</span></div><div class="ace-line ace-line old-record-id-TCCxdPgweou0PRx5W3PuY22Asjg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-UjJAd0CLHoOTM1x0MgmuwrgisTd"><span style="font-size: 16px;">3.3 Identify reversal signals</span></h3><div class="ace-line ace-line old-record-id-I5ipdPcA0o8vwOxfs9jumKOEskd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YME5dHFGuoqADBxxgGWuqSbascC"><span style="font-size: 16px;">When the price falls below the dots during an uptrend, the dots move above the price, which may signal that traders should close long positions and consider opening short positions. When the price rises above the dots during a downtrend, the dots move below the price, which may signal that traders should close short positions and consider opening long positions. This is the core logic behind the stop-and-reverse system, allowing traders to continue following the market trend.</span></div><div class="ace-line ace-line old-record-id-JgxSd7oRAoUqy5xtuMouVYWhsee"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-O8y9dLBANoTKVrxdDgWumu0Psgd"><strong>4. How to Use the Parabolic SAR on MEXC</strong></h2><div class="ace-line ace-line old-record-id-J9cXd9Wo6oxCazxjwgVudfW5s9d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MthRdUwcHo8wkYxSLS3u7ARfsce"><span style="font-size: 16px;">Go to the MEXC Spot or <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> trading page, open the candlestick chart, and click Indicators. Search for and add the Parabolic SAR indicator, then customize its parameters in the settings.</span></div><div class="ace-line ace-line old-record-id-MSm5dhQyHoeWsTxEBUeuqHaPsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LbtldVWeIo8hLbxmCkNuVXsssgg"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-IDWvd55CqohU4oxG3KcuDPrssIf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2cde168e-6ad6-4ae6-96fa-324d3aec00e3&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FBbgKblT0joA3K9x0EKXurGkCste%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;BbgKblT0joA3K9x0EKXurGkCste&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:253100,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-O60YdhOwToJh46xiYMSuX1AKsPe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175225979vWee7BeE2G0SmX.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJCYmdLYmxUMGpvQTNLOXgwRUtYdXJHa0NzdGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTzYwWWRoT3dUb0poNDZ4aVlNU3VYMUFLc1BlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9CYmdLYmxUMGpvQTNLOXgwRUtYdXJHa0NzdGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/BbgKblT0joA3K9x0EKXurGkCste/?mount_node_token=O60YdhOwToJh46xiYMSuX1AKsPe&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://BbgKblT0joA3K9x0EKXurGkCste" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-CJ6qdw1EdoKJmZx7DUouj3wasUf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-IraydN7KYoQ2YKxP31Bu4eDfsWg"><strong>5. Advantages, Limitations, and Tips for Using the Parabolic SAR</strong></h2><div class="ace-line ace-line old-record-id-HZtadlreRoD2A4xgdZHunyjdsze"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HfsgdVT4roAxZ2xh31RuUUhasBf"><span style="font-size: 16px;"><strong>Advantages:</strong> The signals are clear and easy to interpret, helping traders focus on the direction of the trend. The indicator automatically provides potential exit levels and can help manage risk. It performs particularly well in strong, trending markets.</span></div><div class="ace-line ace-line old-record-id-PC8dd8LU2od20sxXzuPuEZ6BsOf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NrYsdSTfvoKtk0xKDMLurjgqsHc"><span style="font-size: 16px;"><strong>Limitations:</strong> The Parabolic SAR is a lagging indicator, so its signals may be delayed. In sideways markets, the dots may frequently switch above and below the price, generating numerous false signals. Relying on the indicator alone may lead to repeated losses.</span></div><div class="ace-line ace-line old-record-id-Ho2Odp0kQopr5Tx4RStu8rsPs3b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-En0RdhEYpopW1WxlTNouHRcasad"><span style="font-size: 16px;">It is recommended to combine the Parabolic SAR with other indicators. For example, traders may use the Average Directional Index to confirm trend strength and only act on signals when the trend is strong. They may also use moving averages to filter the trend direction and trade only in line with the broader market trend. Any strategy should also be supported by sound position sizing and risk management.</span></div><div class="ace-line ace-line old-record-id-LjEDdV5n0o8s4oxmL08uXJeDsoc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-LeKldTU6FoYA6Px1GJjudAufs1b"><strong>6. Parabolic SAR FAQ</strong></h2><div class="ace-line ace-line old-record-id-JVE8dLYLOoJFl7xB3dRuE073scC"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HIoBdGlGKoFBUwxJGutuzzmusWh"><span style="font-size: 16px;">6.1 What is the Parabolic SAR indicator?</span></h3><div class="ace-line ace-line old-record-id-QX3pdyyEhoSTzNxXSgou5LhksDg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JkhrdLqbUoKbtGxKujMuaI7gsFd"><span style="font-size: 16px;">The Parabolic SAR is a trend-following indicator that uses dots above or below the price to show the trend direction and potential reversal points. It can also be used as a trailing stop tool.</span></div><div class="ace-line ace-line old-record-id-HEKYdREjtomoxGxoqnquJX8Qskh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IiORdWF52off3IxeJoxuOm8msff"><span style="font-size: 16px;">6.2 How can I use the Parabolic SAR effectively?</span></h3><div class="ace-line ace-line old-record-id-CYWldrH4HoDfl1x0gBpu3lIXsqh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RoC9dIGLHoSzQIxKzxwu2KRMscq"><span style="font-size: 16px;">First, use the position of the dots to identify the trend direction and enter trades in line with the trend. The latest dot can be used as a reference when setting a stop-loss. When the dots move to the opposite side of the price, consider exiting the position or reversing direction. Other indicators should also be used to filter false signals in sideways markets.</span></div><div class="ace-line ace-line old-record-id-Op2udOTOhoWAqTxF5bau6eRLsWe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-AUCnd9ZhGo4Kn3x0hzbuzScmsVf"><span style="font-size: 16px;">6.3 What are the best Parabolic SAR settings?</span></h3><div class="ace-line ace-line old-record-id-Wm9TdG7S2oul6uxpkzduysQnszb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MBEldlJvuoylWnxhBvluPj11s4i"><span style="font-size: 16px;">The default acceleration factor is 0.02, with a maximum value of 0.20. These settings are suitable for most market conditions. Short-term traders may increase the acceleration factor, while longer-term traders may reduce it.</span></div><div class="ace-line ace-line old-record-id-K69WdmcV8oASupxYxP6uQQEusDc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RsO3dFuLuojzq2xzqVEukOgAsMe"><span style="font-size: 16px;">6.4 Can the Parabolic SAR be used on 1-minute and 5-minute charts?</span></h3><div class="ace-line ace-line old-record-id-S20mdW8UDoewpwxIPy5uftBTskg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X72AdT80no45onxxR7nuvhVosTf"><span style="font-size: 16px;">Yes. The indicator can be used on all timeframes, and day traders commonly use it to 1-minute and 5-minute charts. However, shorter timeframes contain more market noise, so it is recommended to combine the indicator with a trend confirmation tool.</span></div><div class="ace-line ace-line old-record-id-ZsN7dr7Reoi6njxiJu4u3kMns1g"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ZJ5vd5Oglo26m8xrbJzuE3HysJh"><span style="font-size: 16px;">6.5 What are some common Parabolic SAR strategies?</span></h3><div class="ace-line ace-line old-record-id-NJqvdqtyhoZ3vTxyvKJuuEzDsqW"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VL3ZdfC2HosKtIx2AOSuK4izszf"><span style="font-size: 16px;">Common strategies include trend following strategies, dual-timeframe strategies that use a longer timeframe to determine direction and a shorter timeframe to identify entry points, and filtering strategies that combine the Parabolic SAR with the Average Directional Index.</span></div><div class="ace-line ace-line old-record-id-Lu95di4imo93SDx36L8uYt9XsHd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-XvuxdoeydoxEfExCb80u8YyBslg"><span style="font-size: 16px;">6.6 What is the 7% stop-loss rule?</span></h3><div class="ace-line ace-line old-record-id-CC2cdvbhIoItNqxKir0uC84Xsud"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IFegdbqrOoGiDQxAyUDu8IswsFh"><span style="font-size: 16px;">The 7% stop-loss rule is a fixed-percentage risk management method. It requires traders to exit a position when the loss reaches 7% of the purchase price. The Parabolic SAR, by comparison, provides a dynamic stop-loss level. The two approaches can also be combined.</span></div><div class="ace-line ace-line old-record-id-YkG4dtXgko8H0Fx8IueuE9NnsYc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-FiwddK0wmoDoABxQE21uUNCKsrc"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-RGGXdr9CaozwN2xtmLJuYZZvsqe" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-UCh8dJsuKoXaO5xsNQju80eYsXf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-Se4mdsLFVo8veBxxKsNuNr4Ls1f" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536" data-lark-is-custom="true" style="font-size: 16px;">How to Use Bollinger Bands in Trading</a></div></li><li class="ace-line ace-line old-record-id-NExYd0uqfoscexxRR65uHfyzsGf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-DN4MddWNGonhPcxTPbgu4IIKsTd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-G8oRdFd2QouN2UxmbmJulFICs9f"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use the Ichimoku Cloud Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="ZEQAdixMPofpV3xGpXeu1D9HsRd" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-Bquzdeyz0o2vHoxhPdtu7lFDsK1"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-VojidvwW0oS95kx1b1Gurlwxsac" data-list="bullet"><div><span style="font-size: 16px;">The Ichimoku Cloud is a comprehensive technical indicator that combines trend direction, support and resistance, and momentum analysis.</span></div></li><li class="ace-line ace-line old-record-id-DEG8dPx3roEz52xyJjFuY2wosKh" data-list="bullet"><div><span style="font-size: 16px;">The indicator consists of five lines: the Conversion Line, Base Line, Lagging Span, Leading Span A, and Leading Span B. The area between the two leading spans forms the cloud.</span></div></li><li class="ace-line ace-line old-record-id-JqMVdqjMboeRzGxKzBqu4VEAsVb" data-list="bullet"><div><span style="font-size: 16px;">Traders can assess market trends and identify potential buy and sell signals by observing the price's position relative to the cloud, changes in cloud color, and line crossovers.</span></div></li><li class="ace-line ace-line old-record-id-Xpo2dYh9joSouixILkUubZe4sId" data-list="bullet"><div><span style="font-size: 16px;">The Ichimoku Cloud can be enabled and customized directly on MEXC Spot and Futures trading charts to support everyday trading decisions.</span></div></li></ul><div class="ace-line ace-line old-record-id-OD8tdDuyMolRsExnmIxuLV46sIe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-UNwHdZ0wwofUgdxZxAfuOkXTsud"><strong>1. What Is the Ichimoku Cloud?</strong></h2><div class="ace-line ace-line old-record-id-TluudQcVnolyIHxj4okusNgvsrb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BxBid28slojt9hxk3BzuzkLqsLg"><span style="font-size: 16px;">The Ichimoku Cloud is a technical analysis method that combines multiple indicators into a single chart. Its name reflects the idea of understanding market conditions at a glance. The indicator was developed by Japanese journalist Goichi Hosoda in the 1930s. After years of research and refinement, it was publicly introduced in the 1960s and has since become a classic indicator widely used by traders around the world.</span></div><div class="ace-line ace-line old-record-id-TJP6dTC82oHWfpxBvIduSVzes9d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IKvhdALhrolbwcxkBYgurCyXsGe"><span style="font-size: 16px;">Unlike traditional moving averages, the Ichimoku Cloud can simultaneously display potential support and resistance levels, trend direction, and price momentum. This allows traders to assess the broader market picture on a single chart and identify potential entry and exit opportunities more efficiently. The Ichimoku Cloud is currently available on MEXC Spot and Futures trading charts and can be added directly to the candlestick chart.</span></div><div class="ace-line ace-line old-record-id-WztjdtfC8on2XwxiMzZuN0VjsLe"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2ac874f0-f7cd-445d-926f-ae64e88e4ca4&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FInF7bowwEoTYBBxpfpVuUcLIsqo%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;InF7bowwEoTYBBxpfpVuUcLIsqo&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:300985,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-Xq82d6qQpoNsQwx5dMuuvtyTsgc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175540049ykGgTD0CTOUCsP.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJJbkY3Ym93d0VvVFlCQnhwZnBWdVVjTElzcW8iLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWHE4MmQ2cVFwb05zUXd4NWRNdXV2dHlUc2djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JbkY3Ym93d0VvVFlCQnhwZnBWdVVjTElzcW8vP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/InF7bowwEoTYBBxpfpVuUcLIsqo/?mount_node_token=Xq82d6qQpoNsQwx5dMuuvtyTsgc&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://InF7bowwEoTYBBxpfpVuUcLIsqo" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-A82TdQLe5oQJDdxzIYMu1cO7sPh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-N1mydapGMoLLaax9YsMu3E2ksSd"><strong>2. How Is the Ichimoku Cloud Calculated? Five Main Components Explained</strong></h2><div class="ace-line ace-line old-record-id-XW64dmE6aob0lJxK4IduXyQwsbc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MgZ6dEtQJooyAqx7H8ZuiHPqsSf"><span style="font-size: 16px;">Understanding the Ichimoku Cloud requires knowing how its five components are calculated and what they represent.</span></div><div class="ace-line ace-line old-record-id-NjvYd2RaKoU2PfxqUvyuYmwasfc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ABgTdT5xboWuEbx4JqjuPheNsdh"><span style="font-size: 16px;"><strong>Conversion Line:</strong> Based on nine periods and calculated as:</span></div><div class="ace-line ace-line old-record-id-VbrydEjzEoPBn5xx9Vau0NYmsxb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EzqVdtEtqoOfB3xuyCzuh0qZsYc"><span style="font-size: 16px;">(Highest high over the past nine periods + Lowest low over the past nine periods) / 2</span></div><div class="ace-line ace-line old-record-id-JJR7d9qRqocDFZxYZS4uc0vesob"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SOpidULN3oQtloxSWVZu1w8vsxc"><span style="font-size: 16px;">The Conversion Line responds most quickly to price movements and represents short-term price momentum.</span></div><div class="ace-line ace-line old-record-id-L1SpdZJvho86BRxiu49utl9isrc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C9tHdxy02oOTeqxBKNOuyNB6sVc"><span style="font-size: 16px;"><strong>Base Line:</strong> Based on 26 periods and calculated as:</span></div><div class="ace-line ace-line old-record-id-GfpjdfFwIoiH12xgSNZu5oZ3sce"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A0gzdo9R3owff9xknbcusmzssMe"><span style="font-size: 16px;">(Highest high over the past 26 periods + Lowest low over the past 26 periods) / 2</span></div><div class="ace-line ace-line old-record-id-L1HWdjo0QofwiUxSAD7u7upRsJf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-P6hldu7UlozRwXxkIKluS5rbsvc"><span style="font-size: 16px;">The Base Line is smoother and represents the medium-term trend. It is also commonly used as a reference for dynamic support and resistance.</span></div><div class="ace-line ace-line old-record-id-A1Q6d9zDvo3TX4xrTTYufSDzsSd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Tqxxd0hnCoCexgx6xlKummUjshe"><span style="font-size: 16px;"><strong>Lagging Span:</strong> The current closing price plotted 26 periods back. It is used to compare the current price with historical prices and help confirm the trend.</span></div><div class="ace-line ace-line old-record-id-BwxodDm8Mo8MnFxAXntunBhLs3c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IHEpdf8kaoydqpxrRdHuuibqsUf"><span style="font-size: 16px;"><strong>Leading Span A:</strong> Calculated as:</span></div><div class="ace-line ace-line old-record-id-UMVZdZRAloqwVzxs1SkuW4x0suc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F5DUdzoxZoIJXVxNOK3uvH5JsYg"><span style="font-size: 16px;">(Conversion Line + Base Line) / 2</span></div><div class="ace-line ace-line old-record-id-SGUGdfGQlovk9rxUdI5uHbq5sQb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TRxcdP4SuoSrbyxi0BquxCfFs0d"><span style="font-size: 16px;">The result is plotted 26 periods ahead and forms one boundary of the cloud.</span></div><div class="ace-line ace-line old-record-id-SEyzdzwkmoSeD9xs2CzuNlvosEg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OgQtdd65yockUwx6IStuQtjssAd"><span style="font-size: 16px;"><strong>Leading Span B:</strong> Calculated as:</span></div><div class="ace-line ace-line old-record-id-Ajt2d5J6so6An2xqbL8uanbgsBg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HGHxdT7muoYzIvxRPeXumdofshg"><span style="font-size: 16px;">(Highest high over the past 52 periods + Lowest low over the past 52 periods) / 2</span></div><div class="ace-line ace-line old-record-id-NAdDdrn6qoKO5XxjrIvu7hdzsde"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ih7fdK5iXoKUCYxi7SOuO2nus0c"><span style="font-size: 16px;">The result is also plotted 26 periods ahead and forms the other boundary of the cloud.</span></div><div class="ace-line ace-line old-record-id-XH2UdsgyoohAbXx6f9zuPVMgshc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SpDLdcVvQo6FYjxKvoQu6OXKsKR"><span style="font-size: 16px;"><strong>Cloud:</strong> The area between Leading Span A and Leading Span B. It is the central component of the indicator. Because the cloud is projected 26 periods into the future, it can help traders identify potential future support and resistance areas.</span></div><div class="ace-line ace-line old-record-id-HBREdV6V3oXqMaxESv1u7ns4sgg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FG8SdmpYMo4DHNx8ZDSubw9CsDg"><strong>3. How to Interpret the Ichimoku Cloud</strong></h2><div class="ace-line ace-line old-record-id-MQ71dfaiFox9OMxyVzOudawjste"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BtfAdKsKcoBWLtxOVssuNZjdsfe"><span style="font-size: 16px;">The Ichimoku Cloud can mainly be interpreted from three main ways.</span></div><div class="ace-line ace-line old-record-id-KHhed6KO7olGuGxUgcOurwxYsWe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BkL2dFZ9VoyylAx85fpuMFpJsrg"><span style="font-size: 16px;"><strong>First, observe the price's position relative to the cloud.</strong> When the market price is above the cloud, it produces a bullish signal and indicates an uptrend. When the price is below the cloud, it generally indicates bearish conditions and indicates a downtrend. When the price is moving inside the cloud, the market is generally considered to be ranging or consolidating. Traders should remain cautious and wait for a clear breakout signal.</span></div><div class="ace-line ace-line old-record-id-Iy2ndILjdoFMr1xA6auuPZ8As4G"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Bzrod8SSDoefPkx4uBGuEvlTs2d"><span style="font-size: 16px;"><strong>Second, observe the color of the cloud.</strong> When Leading Span A is above Leading Span B, a green cloud is formed, indicating bullish conditions. When Leading Span A is below Leading Span B, a red cloud is formed, indicating bearish conditions. A change from a red cloud to a green cloud is considered bullish, while a change from green to red is considered bearish.</span></div><div class="ace-line ace-line old-record-id-RyaqdpuGmonfQDx16vQuTpMRsAe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C1cRdQ4lAou3TfxjId8ulCzqsrb"><span style="font-size: 16px;"><strong>Third, observe the thickness of the cloud.</strong> A thicker cloud generally indicates stronger support or resistance, making price breakouts more difficult. A thinner cloud suggests weaker support or resistance, making it easier for the price to break through.</span></div><div class="ace-line ace-line old-record-id-V3NSdkIAookWCOxUE4FusJv0s07"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-DK5kdi9MJo2oEExwidZuPQRUsuh"><strong>4. Ichimoku Cloud Buy and Sell Signals</strong></h2><div class="ace-line ace-line old-record-id-KnXtdLafFo3JhgxEadLulD7ysac"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DlAEdToSio6r0rxqt5OuUTNlsF7"><span style="font-size: 16px;">The Ichimoku Cloud can generate several clear trading signals. Beginners may focus on the following types.</span></div><div class="ace-line ace-line old-record-id-WvGgd1RJcoA42yxuhKju76G1ska"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IlxEd50ncoFqQNxkpNauHIBEshb"><span style="font-size: 16px;"><strong>Conversion Line and Base Line Crossover Signals: </strong>During an uptrend, if the price is above the cloud and the Conversion Line crosses above the Base Line, it may provide a buy signal. During a downtrend, if the price is below the cloud and the Conversion Line crosses below the Base Line, it may provide a sell signal. These signals follow logic similar to golden crosses and death crosses between moving averages, but they may respond more quickly.</span></div><div class="ace-line ace-line old-record-id-RSwndrdzBogHCvxhsYhuKmemsFb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EafTd9vmjomQeexwIxkuYujbscT"><span style="font-size: 16px;"><strong>Price and Base Line Crossover Signals: </strong>During an uptrend, when the price crosses above the Base Line while remaining above the cloud, it may provide a buy signal. During a downtrend, when the price crosses below the Base Line while remaining below the cloud, it may provide a sell signal.</span></div><div class="ace-line ace-line old-record-id-J5xBdAPfgoZuvPxMunMuLHKpsRd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ACuXduQcroG9rfxDDoFuBoR3sXc"><span style="font-size: 16px;"><strong>Cloud Breakout Signals:</strong> When the price breaks above the cloud from below and remains there, it may indicate that the trend is shifting from weak to strong. This is generally considered a relatively reliable medium- to long-term buy signal. When the price breaks below the cloud, it may indicate that the trend is weakening, and traders may consider exiting or opening a short position.</span></div><div class="ace-line ace-line old-record-id-FoT2dZogDoWwNKxCAbUuIHWksLf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OftLdRmfQofjfpxB9Sruld57suj"><span style="font-size: 16px;">Signals aligned with the broader trend are generally more reliable. When the price is above a green cloud, traders may prioritize buy signals. When the price is below a red cloud, they may prioritize sell signals. Countertrend signals are generally weaker and should be approached cautiously, especially by beginners.</span></div><div class="ace-line ace-line old-record-id-YxdydyoJ1ocJqUxvqqIuOhrJsSe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-TOdhdPQVzoc3uex0iLxuchI6sZc"><strong>5. Entry and Exit Strategy for Beginners Using the Ichimoku Cloud</strong></h2><div class="ace-line ace-line old-record-id-R4N8d8erpowvxvx6fE9uju8Ksoc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OrpCd2fBkopYHbxX7e0uEGBqsPg"><span style="font-size: 16px;">Beginners may use the following as a simple entry and exit framework:</span></div><div class="ace-line ace-line old-record-id-IWVidB3CsolnetxrAPku9pavsYb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-K4v5daRYIoe3xhxOzWyubZcRs6g"><span style="font-size: 16px;">1. Use the cloud to determine the broader trend direction and only trade in the same direction as the trend.</span></div><div class="ace-line ace-line old-record-id-DDZCd67j3oFg10x0MkZu9sh5srd"><span style="font-size: 16px;">2. Wait for confirmation signals. For example, after the price breaks above the cloud, wait for the Conversion Line to cross above the Base Line while the Lagging Span is also above historical prices. Using multiple confirmation signals may improve reliability.</span></div><div class="ace-line ace-line old-record-id-Lh1bdcUEgohqHGx9Y4uuU0vPsGb"><span style="font-size: 16px;">3. After entering a position, place the stop-loss below the Base Line or outside the cloud boundary to control the risk of each trade.</span></div><div class="ace-line ace-line old-record-id-Ca6Zd4PC0oGbLExiEQTuKr1Vsjh"><span style="font-size: 16px;">4. If the Conversion Line crosses the Base Line in the opposite direction or the price moves back into the cloud, consider taking profits gradually or exiting the position.</span></div><div class="ace-line ace-line old-record-id-J3jldTPUcojLKuxEwHFudaeTsve"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PPB0dGlxEokdZnxrDoLuOR2WsZd"><span style="font-size: 16px;">Traders may also combine the Ichimoku Cloud with tools such as the Relative Strength Index and exponential moving averages to filter false signals in sideways markets and improve market analysis.</span></div><div class="ace-line ace-line old-record-id-GhBddVhuBoNn4pxn5udu7JFTsuh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-HjycdoWRMoDe6oxxUBKuFuMQsfb"><strong>6. How to Use the Ichimoku Cloud on MEXC</strong></h2><div class="ace-line ace-line old-record-id-RPThdDVvxoPUYLxI2JnueUrQsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V6NEdledBoxQjbxKkyuu6vnEsy1"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website </a>→ Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures </a>→ Indicators → Ichimoku Cloud</span></div><div class="ace-line ace-line old-record-id-TVpLdfuwlotssbxFgaoupX1asOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HQ8gdwcg2oIUm4xDiiUu2iQXs5f"><span style="font-size: 16px;">Once the indicator is enabled, the values for each component will be displayed above the candlestick chart based on the cursor position. Click the settings button to adjust the basic parameters, which are set to 9, 26, 52, and 26 by default. You can also customize the color and thickness of each line according to your preferences. To remove the indicator, click the corresponding close button.</span></div><div class="ace-line ace-line old-record-id-LQuRdn3FKoxJNUxtPQIuobDqsnc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Lja1dHXw3ov7v8xLrm5uAzu2sLg"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-GtGfd1EcNo49iHxBdHZuRFE2sJh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;7013a333-3e54-4459-ba02-f2d3637433a1&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FHcKCbQIRfoz6idxzIQPuTWqrsIa%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;HcKCbQIRfoz6idxzIQPuTWqrsIa&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:294040,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AZn8dhuujodhThx6HLauN0sEs3c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175539315FOY6zazhpLLjD0.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJIY0tDYlFJUmZvejZpZHh6SVFQdVRXcXJzSWEiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQVpuOGRodXVqb2RoVGh4NkhMYXVOMHNFczNjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9IY0tDYlFJUmZvejZpZHh6SVFQdVRXcXJzSWEvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/HcKCbQIRfoz6idxzIQPuTWqrsIa/?mount_node_token=AZn8dhuujodhThx6HLauN0sEs3c&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://HcKCbQIRfoz6idxzIQPuTWqrsIa" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-UuycdPIzWoGPexxrjH7ukBKzsOh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-JBXpdSkqRo0tBHx3uO0uDZ3ssue"><strong>7. Ichimoku Cloud FAQ</strong></h2><div class="ace-line ace-line old-record-id-At7idkd3OopONMxx8h3uIDHHsVd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IrCdd8nSNot8HjxYlAPut76gsXc"><span style="font-size: 16px;">7.1 What is the Ichimoku Cloud?</span></h3><div class="ace-line ace-line old-record-id-KFTmdiGmLoiwKtxq4tluDZ7HsrN"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-E3aKdQnUDoj8JYxElppur489s7b"><span style="font-size: 16px;">The Ichimoku Cloud is a comprehensive technical analysis indicator consisting of the Conversion Line, Base Line, Lagging Span, Leading Span A, and Leading Span B. It displays trend direction, momentum, and potential support and resistance areas, allowing traders to assess market conditions at a glance.</span></div><div class="ace-line ace-line old-record-id-EBnZdlbBMoLWqexBPHouQBSIsjc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ECCVdfh7EoOImhxa2GEuNGy0s0c"><span style="font-size: 16px;">7.2 How do I interpret the Ichimoku Cloud?</span></h3><div class="ace-line ace-line old-record-id-IwYCdy8y8oOxqTxbno8uheM4sKf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VDshdyVP3ohWSxxZ3v1u2oexsVe"><span style="font-size: 16px;">The main method is to observe the price's position relative to the cloud. Prices above the cloud indicate a bullish trend, prices below indicate a bearish trend, and prices inside signal consolidation. Traders may also consider the cloud color, with green indicating bullish conditions and red indicating bearish conditions, together with line crossover signals.</span></div><div class="ace-line ace-line old-record-id-SezVdY63JoAYXzx4J0DuVCJNsqh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-JR0idltS1oGvulxb0wfuSIgOsoe"><span style="font-size: 16px;">7.3 What are the main Ichimoku Cloud buy and sell signals?</span></h3><div class="ace-line ace-line old-record-id-CjRGdaf9YoTFe8xankUuYMRMsbf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YjhcdYVEDoRbWPxWKn7uGJNnsof"><span style="font-size: 16px;">The main buy signals include:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Ot9NdtVKooQAJ6xrFRdun7Y3sEf" data-list="bullet"><div><span style="font-size: 16px;">The price breaking above the cloud</span></div></li><li class="ace-line ace-line old-record-id-YBMWdSmzWodSrix1bsJuVu8ps8g" data-list="bullet"><div><span style="font-size: 16px;">The cloud changing from red to green</span></div></li><li class="ace-line ace-line old-record-id-M5zGdVSVyokHLtxn1yyuVZuAskf" data-list="bullet"><div><span style="font-size: 16px;">The Conversion Line crossing above the Base Line</span></div></li><li class="ace-line ace-line old-record-id-RfuLdeLA1opxOHxrsMOuZrU8sCh" data-list="bullet"><div><span style="font-size: 16px;">The price crossing above the Base Line</span></div></li></ul><div class="ace-line ace-line old-record-id-MGMkd6aSRo5JyMxB5ubuw2OHs8g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CXBVdYIpnogfXAxec7cukWGwsSH"><span style="font-size: 16px;">The main sell signals are the opposite:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Js1pdZQzjoYFkfxwOusuutMbsjc" data-list="bullet"><div><span style="font-size: 16px;">The price breaking below the cloud</span></div></li><li class="ace-line ace-line old-record-id-Bk9SdjQWzoBSZDxQGksun0itsRG" data-list="bullet"><div><span style="font-size: 16px;">The cloud changing from green to red</span></div></li><li class="ace-line ace-line old-record-id-CIzhd6Jleom7IdxBEbnuHwTIsoh" data-list="bullet"><div><span style="font-size: 16px;">The Conversion Line crossing below the Base Line</span></div></li><li class="ace-line ace-line old-record-id-FewjdPHEroDOHnxxDFLudWXZssd" data-list="bullet"><div><span style="font-size: 16px;">The price crossing below the Base Line</span></div></li></ul><div class="ace-line ace-line old-record-id-RaHidGemooHUnXxBUhBu5CLBsNL"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-UKyKdhSY3ovFcZxJIOtuXtwVsfe"><span style="font-size: 16px;">7.4 Does the Ichimoku Cloud strategy have a high success rate?</span></h3><div class="ace-line ace-line old-record-id-AJsqdJdbZoRqM9xxyMcu5ANjsij"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Wi70d5MVzoN5r1xsWjzuqCofsye"><span style="font-size: 16px;">No indicator can guarantee profits. The Ichimoku Cloud generally performs better in clearly trending markets but may generate false signals during sideways or ranging conditions. Using multiple confirmation signals, combining the indicator with other tools, and applying strict stop-loss management may improve the reliability of the strategy.</span></div><div class="ace-line ace-line old-record-id-HiJvdrgsKoUuEBxCzfCu94NhsTh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DuVKdMXPaoxy3exyX9ZueU43sMa"><span style="font-size: 16px;">7.5 Is the Ichimoku Cloud suitable for day trading?</span></h3><div class="ace-line ace-line old-record-id-XiGNdG3WZoJe31xWKEkug7QNsnc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RzzNdGoyLoxPg4xuYJnuIZBtsDk"><span style="font-size: 16px;">Yes. Short-term traders can use the indicator on lower timeframes. However, because shorter timeframes contain more market noise, it is recommended to confirm the broader trend on a higher timeframe first and then look for entries in the same direction on a lower timeframe. Stop-loss levels may also need to be tightened accordingly.</span></div><div class="ace-line ace-line old-record-id-IIigd22EyoyY9ExnVVmu0nNvsvc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PJ3ldplU3o8hJyxUgJ4uRi8JsYf"><span style="font-size: 16px;">7.6 How do I use the Ichimoku Cloud indicator on MEXC?</span></h3><div class="ace-line ace-line old-record-id-NaMXdHKPoogqmHxRZZVuPdaYsIh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZOeLdOhRkooOiQxeOacuXSQasvC"><span style="font-size: 16px;">Log in to the <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> official website and go to the Spot or Futures trading page. Click Indicators and select Ichimoku Cloud to enable it. The indicator's parameters and line styles can also be customized.</span></div><div class="ace-line ace-line old-record-id-XR6ldiKYVoEmBJxwuj9uE6TTsNc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B2XBdnH87oA6qaxheyiuPyVcsDM"><span style="font-size: 16px;">The Ichimoku Cloud provides traders with a powerful tool for understanding market trends and is particularly suitable for trend-following strategies. However, no indicator is effective under all market conditions. It is recommended to combine the Ichimoku Cloud with other indicators and set appropriate stop-loss levels when opening positions on MEXC to manage trading risk.</span></div><div class="ace-line ace-line old-record-id-VXridr9xRoXxqzxVhVUuI1PwsSb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KskTdYmEeotJuqxMFb3uLZdLs5b"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-OqJGdEkgvoXODYxvmbFutoLYsAd" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-DBgVdVGRKoXxyFxvCQjuv19zsce" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-TqjXdY9tZowuP5xl9eKuMkdGsDb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536" data-lark-is-custom="true" style="font-size: 16px;">How to Use Bollinger Bands in Trading</a></div></li><li class="ace-line ace-line old-record-id-OsTad75uSoELnGxTT7quCW4GsZd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Parabolic SAR Indicator in Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-SIzBdrpTJoKJDzxUcaNuLViMsKg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MSZ1dYUm5olt4rxd9FDuzI2jsGn"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Trade Pre-Market Perpetual Futures on MEXC?

<div data-page-id="UwG5dq511oMKYQxBCW3u9uPysqe" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusUIZZzfGUjVFpZGfpn1wItg"><strong>1. Advantages of Pre-Market Perpetual Futures</strong></h2><div class="ace-line ace-line old-record-id-doxusntWgf3SNaAuZWyG66wtt4f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-AJYRdZfAHomI9txnyPLuE5IBsdf"><span style="font-size: 16px;"><strong>Early Positioning</strong>: Participate in trading before the official Futures go live. Stay ahead of the market and seize first-mover advantages.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-Rw8jduUtioXhrhxSUgKu2K6tspc"><span style="font-size: 16px;"><strong>Profit from Volatility</strong>: Leverage the high volatility of popular tokens before listing to capture potential gains.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-YjqIdMtZxoQ1ZoxjN5duWBhbsSb"><span style="font-size: 16px;"><strong>Seamless Transition to Standard Futures</strong>: Once the token is officially listed, the Pre-Market Perpetual Futures will automatically convert into standard perpetual Futures. No need to transfer positions—trading continues without interruption.</span></div><div class="ace-line ace-line old-record-id-doxusv9NnDYFmcySY0Fj1IZHKrg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusytpGdyEzTc7QMwURAh39ed"><strong>2. How to Trade Pre-Market Perpetual Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-doxusQT34EYlOKIOIZNs8uQT33f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusOYV6Ui2RdifwT80JNPSRAh"><span style="font-size: 16px;">2.1 Web</span></h3><div class="ace-line ace-line old-record-id-doxusKeDGJoEpYDnN84VzrRc6Dc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusa9DgP7U5IeH55c874S5Dme"><span style="font-size: 16px;">Open and log in to the <a data-lark-is-custom="true" href="https://www.mexc.com">MEXC official website</a>. Click <strong>Futures</strong> in the top navigation bar to enter the Futures trading page.</span></div><div class="ace-line ace-line old-record-id-doxus19tGfydGamRkoG3Q9mBLpb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusMJS2VlWogJHh35f6EQnbAf"><span style="font-size: 16px;">On the trading page, click the Futures pair selector (▼) to view categories like 0 Fees, MEME, Solana Ecosystem, etc.</span></div><div class="ace-line ace-line old-record-id-doxusZqpsRzeLFpkULpfi5MkXmd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusL760VZKG8mNBR6Dar967mc"><span style="font-size: 16px;">Select <strong>Pre-Market</strong> to view all active Pre-Market Perpetual Futures pairs. Click on the pair you want to trade and start your Pre-Market Perpetual Futures trading journey.</span></div><div class="ace-line ace-line old-record-id-doxusTcOFXB7wCJdNzGytuPUpsh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;935f56b9-2b22-4ed8-b8ed-bbafa9104b47&quot;,&quot;height&quot;:1380,&quot;width&quot;:2878,&quot;currHeight&quot;:1380,&quot;currWidth&quot;:2878,&quot;natrualHeight&quot;:1380,&quot;natrualWidth&quot;:2878,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FQrkSbtXlAohEujxynpuujSQ6sac%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;QrkSbtXlAohEujxynpuujSQ6sac&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:928870,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-TYpgdboGRoYAyCxm2zHuZtZissc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260622131220356Lg5UsLjzzaZft4.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJRcmtTYnRYbEFvaEV1anh5bnB1dWpTUTZzYWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiVFlwZ2Rib0dSb1lBeUN4bTJ6SHVadFppc3NjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9RcmtTYnRYbEFvaEV1anh5bnB1dWpTUTZzYWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/QrkSbtXlAohEujxynpuujSQ6sac/?mount_node_token=TYpgdboGRoYAyCxm2zHuZtZissc&amp;mount_point=docx_image" data-width="2878" data-height="1380" data-lark-image-uri="drivetoken://QrkSbtXlAohEujxynpuujSQ6sac" data-lark-image-width="2878" data-lark-image-height="1380" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusHNK1twDeqqQR1FIS80gZZb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusJkj7UIgHvD7bzZ4sC7dyAg"><span style="font-size: 16px;">2.2 App</span></h3><div class="ace-line ace-line old-record-id-doxusAdvtvTVYBsbIYJGecvgfhc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus9ALU6dAgGS1EZrnrq2TXhe"><span style="font-size: 16px;">1) Open and log in to the MEXC App. Tap <strong>Futures</strong> at the bottom of the homepage to enter the Futures trading page.</span></div><div class="ace-line ace-line old-record-id-MVi2dzqoxooLhgxgFzXuLQARsfc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusoqbQdriK3tt30OgIN33Sqf"><span style="font-size: 16px;">2) At the top of the Futures trading page, tap the contract pair selector (▼) to switch trading pairs.</span></div><div class="ace-line ace-line old-record-id-R4w0dJ2p7ohynbxWFkcuQlIosRe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusbHNfBpty0KoKJVQ467IV0e"><span style="font-size: 16px;">3) Under <strong>USDT-M</strong>, find and select <strong>Pre-Market</strong>. You will see all active Pre-Market Perpetual Futures pairs listed. Tap the pair you wish to trade and start your Pre-Market Perpetual Futures trading journey.</span></div><div class="ace-line ace-line old-record-id-doxusYpZuEXmN1EtNBbtR9N7cme"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;63cf28ee-ed7a-411d-9f09-9347f233b79f&quot;,&quot;height&quot;:2160,&quot;width&quot;:3129,&quot;currHeight&quot;:2160,&quot;currWidth&quot;:3129,&quot;natrualHeight&quot;:2160,&quot;natrualWidth&quot;:3129,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FZwnWbX4EUo6YTwxztf4up4AxsZE%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;ZwnWbX4EUo6YTwxztf4up4AxsZE&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1161691,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-E2uLdFwc1okch3xJMdIusqfos8I"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260622131219702OO8MRbSrFGeHUC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJad25XYlg0RVVvNllUd3h6dGY0dXA0QXhzWkUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRTJ1TGRGd2Mxb2tjaDN4Sk1kSXVzcWZvczhJIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ad25XYlg0RVVvNllUd3h6dGY0dXA0QXhzWkUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/ZwnWbX4EUo6YTwxztf4up4AxsZE/?mount_node_token=E2uLdFwc1okch3xJMdIusqfos8I&amp;mount_point=docx_image" data-width="3129" data-height="2160" data-lark-image-uri="drivetoken://ZwnWbX4EUo6YTwxztf4up4AxsZE" data-lark-image-width="3129" data-lark-image-height="2160" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxuskgygQ2C1qIR9A6VODgj9cf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusyQs4v6dOI3p36VUL0zL3zd"><strong>3. Risks of Pre-Market Perpetual Futures</strong></h2><div class="ace-line ace-line old-record-id-doxusEFmtEOgT8rDvBxjzCOKrNe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusVZr9iuKZuDKZ4uxFEkJgEg"><strong style="font-size: 16px;">3.1 Lower Liquidity</strong></h3><div class="ace-line ace-line old-record-id-doxusR7QNkp1Dz0iRpMH7Iv2ktA"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LHFcde9tJoAwjKx8QKUubCjcstc"><span style="font-size: 16px;">Compared to standard perpetual Futures, Pre-Market Perpetual Futures typically have fewer participants and shallower order books.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-WaHEdXeGjoLmwRx6aldunaHVsng"><span style="font-size: 16px;">Lower liquidity can lead to wider bid-ask spreads and more significant slippage.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-R3NXdIUHHo0aFXx3NGVuQupOsLg"><span style="font-size: 16px;">The lack of sufficient counter-parties may affect your ability to open or close positions quickly.</span></div><div class="ace-line ace-line old-record-id-doxusmSd02yPZ0w24oyCT6OlnGg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusVkBLUtvj6fTOnaoRLNyWhg"><strong style="font-size: 16px;">3.2 Higher Volatility</strong></h3><div class="ace-line ace-line old-record-id-doxus2qJnq5PxTIriMnFzUrAc4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GLVFd113HofXzIxcnqyub12xsEh"><span style="font-size: 16px;">Due to fewer participants and less balanced orders, the market is more sensitive to price swings.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CQEKdda0goHrCzxelSMugBeysoP"><span style="font-size: 16px;"><strong>Funding Rate Volatility</strong>: With fewer index price sources, the funding rate may fluctuate dramatically, potentially offsetting profits or even leading to losses if not properly managed.</span></div><div class="ace-line ace-line old-record-id-MpBkd4PeLoAzGvxBhGVu66Bdsnl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ENDvdrIZfo9S0TxAbbQuBrvPs7c"><span style="font-size: 16px;"><strong>Important Reminder:</strong> Pre-Market Perpetual Futures involve higher volatility, lower liquidity, and a greater risk of forced liquidation. Prices are highly sensitive to market sentiment and information, making this a speculative product. Please evaluate your risk tolerance carefully before participating, even as we continue to improve the trading experience.</span></div><div class="ace-line ace-line old-record-id-doxus700YIHOXp0ooAdpG0MNsUc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnqziNFLloQi9U2aeNGLAjg"><strong>4. Pre-Market Perpetual Futures FAQs</strong></h2><div class="ace-line ace-line old-record-id-doxusA2AmJLLw5MBvQnjjLtYPEc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuszViJq7GFWAko046nvAl2zb"><span style="font-size: 16px;">4.1 What happens after a token's Pre-Market Perpetual Futures are launched?</span></h3><div class="ace-line ace-line old-record-id-doxusi8DgdLZRESq7tk63nSj2Bg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusavxzpiPulrAv5ljGv8mMCf"><span style="font-size: 16px;"><strong>4.1.1 Before Spot listing: </strong>The Futures contract remains in Pre-Market Perpetual mode and trading continues normally.</span></div><div class="ace-line ace-line old-record-id-doxusthk82yKsjCOesreOykTBag"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdfM3mlVpwTOxphxDBIwJwg"><span style="font-size: 16px;"><strong>4.1.2 After Spot listing: </strong>If no abnormalities occur, the Futures contract will gradually transition into a standard perpetual Futures contract. The exact transition time will be announced separately.</span></div><div class="ace-line ace-line old-record-id-doxusVqRjhF9DHUgXeJFO4seWFW"><span style="font-size: 16px;"><br></span></div><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusEqiRhhKHz0HhUvzCw10Qvg" start="1"><li data-list="number"><div><strong style="font-size: 16px;">During the transition period:</strong></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusoWaRJQurwwNe3fUJdP786b" start="1"><li data-list="number"><div><span style="font-size: 16px;">1) No manual action is needed: conversion is automatic.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusQP9uRQaasX7xzWwQvPNSQb" start="1"><li data-list="number"><div><span style="font-size: 16px;">2) Candlestick chart data and trading entry points remain unchanged.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusrID2wMgoxzXMTb125SWqAg" start="1"><li data-list="number"><div><span style="font-size: 16px;">3) Open orders and existing positions remain intact.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxuspqBphOTeqhEB9Kq9N1UgDf" start="1"><li data-list="number"><div><span style="font-size: 16px;">4) Risk parameters and index pricing sources may be adjusted.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusFZqdeX9bfTpD2NKMUqMUKb" start="1"><li data-list="number"><div><span style="font-size: 16px;">5) After Spot listing, due to market-based price discovery, Futures prices may fluctuate sharply. Please manage your positions and risk accordingly.</span></div></li></ol><div class="ace-line ace-line old-record-id-doxusnSAKCMj5nBoDzEsAZFj1qf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYj42Djogb6ZzpWL8wZ4r7Q"><span style="font-size: 16px;"><strong>4.1.3 If the Spot listing is canceled or other risk issues arise,</strong> the token's Pre-Market Perpetual Futures may be delisted. Delisting and settlement details will be announced separately.</span></div><div class="ace-line ace-line old-record-id-doxusWWCXW812e4lLrnE6Gngtlg"><span style="font-size: 16px;"><br></span></div><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusrtWW0eXhCcdS8djJlhjyCd" start="1"><li data-list="number"><div><strong style="font-size: 16px;">Settlement guidelines:</strong></div></li></ol><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusM4S29K36qdanONljLp1kUc" data-list="bullet"><div><span style="font-size: 16px;">Settlements will be executed at the fair price.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuszo5FD98nA4nzLLbkrniIie" data-list="bullet"><div><span style="font-size: 16px;">The settlement schedule will be announced in advance and displayed on the trading page.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRgXiyfqOX7Vb24GqOM9Hmf" data-list="bullet"><div><span style="font-size: 16px;">After the announcement, new positions will be restricted, and only position closure will be allowed.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxushikqa63eK6CuSGVo26Wedb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2QQTOPdSe9Xscbm4FtCgVd"><span style="font-size: 16px;">4.2 Trading mechanism for Pre-Market Perpetual Futures</span></h3><div class="ace-line ace-line old-record-id-doxusl42rAjLcoVq7ouhIlCRLvd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus06oDtLrcgJDvEfuEZI5Rpb"><span style="font-size: 16px;"><strong>Modes: </strong>Both isolated and cross margin modes are supported and available on the Website and App. Users can choose to open long or short positions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSdoRZMUZsZMwmr3pbz6F6e"><span style="font-size: 16px;"><strong>Liquidation Mechanism: </strong>Same as standard perpetual Futures, ensuring market stability.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgEBta0FMaEjokNVsXVelmc"><span style="font-size: 16px;"><strong>Fees: </strong>Fee structure is identical to standard perpetual Futures.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbIRfbdM3Lot3Mu4A7ypm2b"><span style="font-size: 16px;"><strong>Pricing: </strong>Determined by market forces and may deviate from the actual Spot listing price.</span></div><div class="ace-line ace-line old-record-id-doxus335Tesfwr6vIzSWvwZBwMh"><span style="font-size: 16px;"><strong>Dynamic parameter adjustments: </strong>MEXC may adjust parameters like funding rate limits and intervals, tick size, max leverage, initial margin, and maintenance margin in response to market risks. Always refer to the trading page for the latest information.</span></div><div class="ace-line ace-line old-record-id-doxustAIeO7qQsBI95XWv7V2kXg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusLnsd6jYZJi3MD2udjp4iBg"><span style="font-size: 16px;">4.3 Difference between pre-market Spot and Pre-Market Perpetual Futures</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-Yq2rdML4SoRTMDxmXYtuuRgiscg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CtSOdLCI9oxv2kxhDT2uoCIWs4e"><span style="font-size: 16px;">Pre-market Spot trading involves trading actual tokens while Pre-Market Perpetual Futures are USDT-margined derivatives and do not involve ownership of the underlying token.</span></div><div class="ace-line ace-line old-record-id-doxusnYhCkacHPIknm4CPCqW17f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusyFmEpjGjoyaOFnyTHTSnB2"><span style="font-size: 16px;">4.4 Will Pre-Market Perpetual Futures affect a token's Spot listing price?</span></h3><div class="ace-line ace-line old-record-id-doxusHImKjYIQ8iZHM3RiR9uxZe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1NV3qZydFWgZI0r0jGklZf"><span style="font-size: 16px;">While Pre-Market Perpetual Futures can reflect market expectations, the actual Spot listing price is influenced by multiple factors and may not directly align with the Futures price. Ultimately, both prices are driven by supply and demand dynamics.</span></div><div class="ace-line ace-line old-record-id-doxusEpVRTOAnn4ZwCARdJw8lwd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusmSvSoxHzKNym0xXbtEyTDf"><span style="font-size: 16px;">4.5 Will the transition from pre-market to official perpetual Futures cause losses?</span></h3><div class="ace-line ace-line old-record-id-doxusbdN7Lfig61tKPn9G1YLCOh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusOw2Rsxq85LbHHJyk6UK2jg"><span style="font-size: 16px;">The transition process itself does not incur any additional costs or losses. All profits and losses result from normal market movements, not the conversion mechanism.</span></div><div class="ace-line ace-line old-record-id-doxus48xhdwWZ9VnmSzIidgz6ag"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusr33Clfot5EbFZayIWZrSdd"><span style="font-size: 16px;"><strong>Reminder: </strong>The Pre-Market Perpetual Futures market has lower liquidity, higher volatility, and a significant risk of forced liquidation. Prices are sensitive to market sentiment and news, and the product is inherently speculative. Please assess your risk tolerance carefully before participating.</span></div><div class="ace-line ace-line old-record-id-doxusRz5beCJy2lkWPhZxqOzZiO"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KGVcdWYawowgTgxXudNuGZRAsDO"><strong style="font-size: 16px;">Recommended Reading:</strong></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-BNm3dIbg6oleJ2xg2BsuvkFcsUf" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/futures-trading-faq-305425827477864448" style="font-size: 16px;">Futures Trading FAQ: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-HvIodgB7roPrixxhy58u8MQvs0g" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-the-mexc-app-305421274812529664" data-lark-is-custom="true" style="font-size: 16px;">How to Trade Futures on the MEXC App</a></div></li><li class="ace-line ace-line old-record-id-BC9Rd6CAOoBJ7kxzbCEuTKzusUf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920" data-lark-is-custom="true" style="font-size: 16px;">Copy Trading Guide For Lead Traders</a></div></li><li class="ace-line ace-line old-record-id-MoVIdnv5XobK04xY3TmuU3Uasye" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-loss-coverage-faq-353767290712346624" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Loss Coverage FAQ</a></div></li><li class="ace-line ace-line old-record-id-BqQLd4aGhoHOOhxsvEOuuNZlsfh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/faq-on-liquidation-for-futures-trading-8123281969561" data-lark-is-custom="true" style="font-size: 16px;">FAQ on Liquidation for Futures Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-doxuscrEJoQLewHp4aRWcn5l0kd"><br></div></div>

MEXC Copy Trade Terms Explained

<div data-page-id="DLYjd9F7ooSAtRxWWRkuAvIPspc" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-doxusT3V0dQpGYDtmA7A1N4dW65"><span style="font-size: 16px;">In copy trading, investors grow their assets by replicating the trades of professional traders. Copy trading's popularity is indebted to its simplicity and convenience. To make the most of this trading method, understanding its key concepts and terminology is essential for beginners. This article provides a detailed breakdown of the core concepts in MEXC Copy Trade, helping you better understand this investment tool.</span></div><div class="ace-line ace-line old-record-id-doxuskWi6YqihSKv6aGKhW4SwcG"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuskgHGeGQcJjjnzsZ02GSVMg"><strong>1. Copy Trade Terms</strong></h2><div class="ace-line ace-line old-record-id-BhASdfirFowMEexRDjsuObVaslb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus92x5LADiQCvG6n6MR4EGud"><span style="font-size: 16px;">These terms are found on the [<a data-lark-is-custom="true" href="https://futures.mexc.com/copyTrade/setting/22394266">Copy Trade Parameter Settings</a>] page. Understanding and mastering them will help you quickly set up copy trading parameters and start copy trading.</span></div><div class="ace-line ace-line old-record-id-doxusgbBqwY6f4tvcVyXKEqf2Ff"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;1b364f01-fb24-4515-9273-24796d75802d&quot;,&quot;height&quot;:442.63537906137185,&quot;width&quot;:804,&quot;currHeight&quot;:442.63537906137185,&quot;currWidth&quot;:804,&quot;natrualHeight&quot;:1220,&quot;natrualWidth&quot;:2216,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.3628158844765343,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FVl25bXxxrok2IHx08CUufc9OsOg%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;Vl25bXxxrok2IHx08CUufc9OsOg&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:377797,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-M0eFd3Vh3o1PByxGRDXuXcLes6o"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611153237947II0dmjozfGxa0P.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJWbDI1Ylh4eHJvazJJSHgwOENVdWZjOU9zT2ciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTTBlRmQzVmgzbzFQQnl4R1JEWHVYY0xlczZvIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9WbDI1Ylh4eHJvazJJSHgwOENVdWZjOU9zT2cvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Vl25bXxxrok2IHx08CUufc9OsOg/?mount_node_token=M0eFd3Vh3o1PByxGRDXuXcLes6o&amp;mount_point=docx_image" data-width="2216" data-height="1220" data-lark-image-uri="drivetoken://Vl25bXxxrok2IHx08CUufc9OsOg" data-lark-image-width="2216" data-lark-image-height="1220" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusP5uKw17RITKjfyDW0obxVg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusOcJYLkSaGevin9G0Uo5Oyc"><span style="font-size: 16px;">1.1 Copy Trade Mode</span></h3><div class="ace-line ace-line old-record-id-doxustcwzmwMbpyp77cGAIkppHc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus7zu2m7eY9tTO8Jt9ZoiCX2"><span style="font-size: 16px;"><strong>Smart Ratio: </strong>This mode replicates the trader's fund allocation proportionally.</span></div><div class="ace-line ace-line old-record-id-QlOLdStWkofhyRxubvwunPD8sRf"><span style="font-size: 16px;">Example: If a trader has an account balance of 1,000 USDT and uses 100 USDT for a trade (10% of their assets), and you have 110 USDT in your copy trade sub-account, your order will use 11 USDT (10% of your assets).</span></div><div class="ace-line ace-line old-record-id-doxusN8EF5SDAMvT72F95ULjPrf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NyeRdmOTVosU5cxAYhuuALersih"><span style="font-size: 16px;"><strong>Fixed Amount</strong>: In this mode, you invest a predetermined amount of margin for each copied trade.</span></div><div class="ace-line ace-line old-record-id-TdYjdtxofoC8SvxutrouHSFMsYW"><span style="font-size: 16px;">Example: If you set a fixed amount of 50 USDT, regardless of the trader's trade size, your order will always use 50 USDT as margin.</span></div><div class="ace-line ace-line old-record-id-doxus4heBG6DYyDjSqyWWW3IIhb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KNmydcZbDopABpxa52Zu5QnRsje"><span style="font-size: 16px;"><strong>Fixed Ratio</strong>: This mode sets your order quantity as a multiple of the trader's order quantity.</span></div><div class="ace-line ace-line old-record-id-Y4D1dj6kPonb2Mx6Kzwulm52sTd"><span style="font-size: 16px;">Example: If you set a fixed follow ratio of 0.7 and the trader executes an order of 100 contracts, your order will be for 70 contracts.</span></div><div class="ace-line ace-line old-record-id-doxusr2ruM8rJ3NESaWX6gTSc4d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusZwXQQiSuqCIx84uWCfCB7f"><span style="font-size: 16px;">1.2 Copy Trade Amount</span></h3><div class="ace-line ace-line old-record-id-doxusJ0Qld6HdGFOemrBoTnYT6e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusB8m8AZQptCZWsSEqbKp4Pc"><span style="font-size: 16px;"><strong>Available: </strong>The displayed available balance refers to the available balance in your Spot account. After submitting Copy Trade information, the system will transfer the specified funds from your Spot account to your Copy Trade account. Note that the copy trading funds must be ≥ 0.01 USDT.</span></div><div class="ace-line ace-line old-record-id-doxusT4athY9Sx8T88LpN5zZUZb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxushPex7xYl56CT2OCIZDowkg"><span style="font-size: 16px;">1.3 Account Stop-Loss</span></h3><div class="ace-line ace-line old-record-id-Iiqmd6U6Com7ZgxZRd6u7VS1sEe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C3ZUdhr2josLmHxuYOEuVGNGsJg"><span style="font-size: 16px;"><strong>Account Stop-Loss</strong>: When your account equity reaches the preset threshold, your copy trading relationship will be canceled. All your open orders will be closed at market price, and the remaining assets will be transferred back to your Spot account. Due to market fluctuations, the actual net value at the time of cancellation may differ from your preset value.</span></div><div class="ace-line ace-line old-record-id-doxusnUCw8osrW4VA5M8sHwiheF"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusrnreBTu1l39iNgtBKiWqKf"><span style="font-size: 16px;">1.4 Trader Liquidation Settings</span></h3><div class="ace-line ace-line old-record-id-doxusPRLYYPoNFuS2PXM6UMgmJb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus8rPbaqyw2aNPqYODgDVOgd"><span style="font-size: 16px;"><strong>Follow to Close: </strong>If the trader's position is liquidated, your corresponding copy trade will also be closed accordingly.</span></div><div class="ace-line ace-line old-record-id-doxuscOkIjqR6jxGYz3aoVvsKpe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusZohzbXt1IRA69qNqrFcvcd"><span style="font-size: 16px;"><strong>Do Not Follow: </strong>Once selected, when a trader's lead trade position is liquidated, your corresponding copy trade position will not follow to close. When that happens, the system will send you a notification, and you must go to <strong>My Copy Trades</strong> → <strong>Current</strong> to manage the copy trade position. You can choose to enable <strong>Auto Margin Addition</strong> to lower the liquidation risk or close the position.</span></div><div class="ace-line ace-line old-record-id-doxussgPM3SMq6Yes2szHtvx9Zg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus3fZqOJvXdTNTSwqZ0nIs1e"><span style="font-size: 16px;">1.5 Risk Control Settings</span></h3><div class="ace-line ace-line old-record-id-doxusHvcMV3DTu5T4kUjQ2tGlXc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus0SAMxYp8EHeSpPm7wbRb5c"><span style="font-size: 16px;"><strong>Maximum Ratio per Order: </strong>When the cost of a single Futures order reaches the maximum asset ratio, the system will place the order at the maximum order cost. You can set a maximum order ratio to prevent individual orders from being too large.</span></div><div class="ace-line ace-line old-record-id-doxusaOsLPljr4Ry7g4eoqnuo7e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxustJA3W0p4iMvLntrWMDSNcc"><span style="font-size: 16px;">1.6 Margin Mode</span></h3><div class="ace-line ace-line old-record-id-doxusnDg0mzXnL5lYZQI17jKzif"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus75WFpsdEmXqnUMeNnIdkze"><span style="font-size: 16px;"><strong>Follow </strong><strong>T</strong><strong>rader</strong><strong>: </strong>If the trader uses the isolated margin mode for their orders, the follower will also use the isolated margin mode. If the trader uses the cross margin mode, the follower will also use the cross margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusiL3N170dmJtGm927f00Izf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxushBzRni48yGuOvAojvglNlf"><span style="font-size: 16px;"><strong>Cross: </strong>Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the cross margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusl9UZGBCGDm48gUTzdljrrg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusVMyoV5kJzTeydYti1hOZRh"><span style="font-size: 16px;"><strong>Isolated: </strong>Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the isolated margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusx1M8elt7Q6KNiaydaOP0Ij"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusJuUYbBb8hYKCZuarrJL86b"><span style="font-size: 16px;">1.7 Margin Settings</span></h3><div class="ace-line ace-line old-record-id-doxus8rWOEwEWYlJxUtIRPiXo0d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus5k0BgEJY6gODymhSlJDe2c"><span style="font-size: 16px;">Note: These settings only apply to positions in the isolated margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusKVTxNsgLcg3y4EMA3mnkcb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustytXDwVVvbcMC9akBeTbYf"><span style="font-size: 16px;"><strong>Do Not Adjust Margin: </strong>Your copy trading position may not be able to adjust the margin to reduce the risk of forced liquidation.</span></div><div class="ace-line ace-line old-record-id-doxusz8Lm2AoNXCtm07r03WnZjc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXzAsf67AtJUf0jiL7okE0g"><span style="font-size: 16px;"><strong>Auto Margin Addition: </strong>To protect against liquidation, your copy trading balance will automatically be used as additional margin when your isolated position is at risk. While this helps prevent liquidation, in extreme market conditions, you could lose all funds allocated to this trader.</span></div><div class="ace-line ace-line old-record-id-doxuse7AopySkSALsz0dsv4KVUe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFB4NVJIyMYI4AAC5rYhuJg"><span style="font-size: 16px;"><strong>Base on Trader's Settings: </strong>The margin for your copy trading position will be based on the trader's margin settings, including <strong>Auto Margin Addition</strong> and manual margin adjustment.</span></div><div class="ace-line ace-line old-record-id-doxusLVuxScA67qcsI7662MHL3f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusxHRYPzRTqgP7GXdXN0QMog"><span style="font-size: 16px;">1.8 Leverage &amp; Slippage Settings</span></h3><div class="ace-line ace-line old-record-id-doxusAPtyt8e1zMM9IJtRfTlVNh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusZaxJvnbCI7hiWZu6Nd9Jtu"><span style="font-size: 16px;"><strong>Slippage: </strong>Copy trades use IOC (Immediate or Cancel) limit orders that follow your slippage settings. If no matching orders are found within your specified slippage range, the order will be automatically canceled, and the copy trade will be marked as failed.</span></div><div class="ace-line ace-line old-record-id-doxusgrX2LVqxIs54O6JDLjlmrg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusbCE2TxVwd8BxXAj7CUcHOf"><strong>2. Trader Terms</strong></h2><div class="ace-line ace-line old-record-id-doxusnFQQ35CPHjZQSIZudPuOcf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusUJ23LsDhySYECCcjkKUkFe"><span style="font-size: 16px;">These terms are located on the <strong><a data-lark-is-custom="true" href="https://futures.mexc.com/copyTrade/leader/155B59A">Trader Details</a></strong> page. Here, you can explore the trader's data from multiple dimensions to help you choose a trader that fits your trading style.</span></div><div class="ace-line ace-line old-record-id-doxusjciEDE8OcSpWmYceQCla6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;375932cc-78a7-426a-b314-e5f9c9e61beb&quot;,&quot;height&quot;:443.846291331546,&quot;width&quot;:724,&quot;currHeight&quot;:443.846291331546,&quot;currWidth&quot;:724,&quot;natrualHeight&quot;:1372,&quot;natrualWidth&quot;:2238,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.32350312779267204,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FNG94b5GpDotZ20xK1TuuI6Zjszf%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;NG94b5GpDotZ20xK1TuuI6Zjszf&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:467459,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AmKEdscU5oehNBxuCkWukAFNsEb"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611153238450qD8k5nz6fQna8j.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJORzk0YjVHcERvdFoyMHhLMVR1dUk2WmpzemYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQW1LRWRzY1U1b2VoTkJ4dUNrV3VrQUZOc0ViIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ORzk0YjVHcERvdFoyMHhLMVR1dUk2WmpzemYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/NG94b5GpDotZ20xK1TuuI6Zjszf/?mount_node_token=AmKEdscU5oehNBxuCkWukAFNsEb&amp;mount_point=docx_image" data-width="2238" data-height="1372" data-lark-image-uri="drivetoken://NG94b5GpDotZ20xK1TuuI6Zjszf" data-lark-image-width="2238" data-lark-image-height="1372" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxus0dnkVA0otCEVTYMTL1y4Yb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuspdrUqWvc8Squkj1l33CiYb"><span style="font-size: 16px;">2.1 Performance</span></h3><div class="ace-line ace-line old-record-id-LXk2dbIZro9gLaxvMi1uFXj4s7c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-VqyKdro41oTqwHxbU8su4ouzs2g"><span style="font-size: 16px;">Total PNL: The cumulative profit and loss from all previously closed trades.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-YvCZdf7J9oEjE4xCLdXuCJlvsCc"><span style="font-size: 16px;">Total ROI: Total profit divided by the sum of historical margin used for copy trading.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-WZsPdQlluoFttexEad4ueQa7sHe"><span style="font-size: 16px;">Total No. of Followers: The number of unique users following this trader. Multiple follows from the same user are counted only once.</span></div><div class="ace-line ace-line old-record-id-IB5Ad5QW5oYmkJxdVRPuoexGsGb"><span style="font-size: 16px;">Followers' PNL: The total profit and loss gained by all followers of this trader.</span></div><div class="ace-line ace-line old-record-id-AC9HdQsvpo0dFNx7c61uSajqsKf"><span style="font-size: 16px;">Avg Order Amount: The trader's average order value for opening positions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-D86Mdz9S3owfxHxPClKuhloFsqA"><span style="font-size: 16px;">PNL Ratio: The ratio of total profit to total loss.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-XJD9dwRvRoUu8kxlhTFub8NesOg"><span style="font-size: 16px;">Total Win Rate: The percentage of closed orders with a positive PNL out of all closed trades.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-NCxLdTw5Tou12jxGTfxuWozzsLd"><span style="font-size: 16px;">Trading Frequency: The average number of trades per week within the selected time period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-UVnydrV1UovO3xx5QYwuKVNisbh"><span style="font-size: 16px;">Winning Trades: The total number of lead trades closed with a positive PNL.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-F1h9dLwHxoTwocxZkHOuT8cjs8c"><span style="font-size: 16px;">Losing Trades: The total number of lead trades closed with zero or negative PNL</span></div><div class="ace-line ace-line old-record-id-doxust2xTCUtiacpxXbhtoWw5Re"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusval2mW1ZaDGwVglT5ZqIMc"><span style="font-size: 16px;">2.2 Followers</span></h3><div class="ace-line ace-line old-record-id-X2F3dv3w4oYiNRxGMt5u9uD6sjb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-NZjfd9Hb0omnSZxpUdMu38t5sob"><span style="font-size: 16px;">Size of Lead Trades: The total assets in the copy trading accounts of all current followers of this trader.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-DXR0drfdfofvyYxpcJuubilpsQh"><span style="font-size: 16px;">Total Equity: Total equity in this trader's Futures account, converted to USDT.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CVUSd6O7RooYLAx4FXyum71ks5x"><span style="font-size: 16px;">Recent Trade Time: The most recent time the trader opened or closed a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RhztdlLiOoa5VmxdXeZu56o8s7c"><span style="font-size: 16px;">Fans: The number of users currently watching this trader.</span></div><div class="ace-line ace-line old-record-id-doxusydGpWhECH28mlouLhHidYc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2LCv3NwSQIIkV2IG5XDiZc"><span style="font-size: 16px;">2.3 Cumulative PNL</span></h3><div class="ace-line ace-line old-record-id-doxusoc7V3yA1ee5Wb0b3EQGmwx"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CvAodBm40oBdynx3IIzuykuysUe"><span style="font-size: 16px;">Cumulative PNL: Sum of closing PNL of all lead trades within the specific period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-AumOdDlN1oAEMoxfP0nuGkLdsAd"><span style="font-size: 16px;">Cumulative PNL Rate: The cumulative profit divided by the total margin used within the specified period.</span></div><div class="ace-line ace-line old-record-id-IYthdpDFuoleeAxGCiRujYlrsgg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusXmtm5mJ3Cbcni0rrPBNfFg"><span style="font-size: 16px;">2.4 Daily Trading Performance</span></h3><div class="ace-line ace-line old-record-id-doxusmKY2d7bq5hoDUHuHGpwI5c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jj4hdHxpjoy5ZPxSKZ8uF8imsnb"><span style="font-size: 16px;">Daily PNL: Sum of PNL from closed orders for the day. </span></div><div class="ace-line ace-line old-record-id-VGigdUehqo4iysxGN4yuEi8FsRe"><span style="font-size: 16px;">Trading Volume: Total trading volume of all closed lead trade orders.</span></div><div class="ace-line ace-line old-record-id-doxusPXvxkfdqMSEZTTiCOJbdab"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusBWtpoBOh9qle7d2xKH6tCd"><span style="font-size: 16px;">2.5 Followers' PNL</span></h3><div class="ace-line ace-line old-record-id-doxusqF64yaH359NdcRXiyDBzug"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusXjN9QE3InLvZeOwykSo3Z1"><span style="font-size: 16px;">Followers' PNL: The total profit and loss accumulated by all followers since this trader started leading trades.</span></div><div class="ace-line ace-line old-record-id-doxus9gzrXehdHJYCbelcMJ1x7d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusF5ka9MAOLMmPJyBbCnpmgb"><span style="font-size: 16px;">2.6 Futures Preference</span></h3><div class="ace-line ace-line old-record-id-doxuscLVANXp66Q8blnTBJ5VRMg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus8F0urL10Q2UeZcrof7FEsh"><span style="font-size: 16px;">Futures Preference: Data summary of all closed lead trade orders under different Futures.</span></div><div class="ace-line ace-line old-record-id-doxusOMuJBPgaw45a28q8C9kc4d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2cBsFfS8o9FCxigCm7AMxc"><span style="font-size: 16px;">2.7 Holding Duration</span></h3><div class="ace-line ace-line old-record-id-doxusvZKVePPCJVjFKyCE7ntleh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHG4OvUaHe9xzgjefVW74nb"><span style="font-size: 16px;">Holding Duration: The system automatically calculates and displays the holding periods and corresponding ROI based on each trader's strategy, including open positions. Order statistics reflect the holding duration of each order, while position statistics show the holding period for each position.</span></div><div class="ace-line ace-line old-record-id-doxusEQbt6jkzGovaxbL37pLprb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusWKWu8zR5XEBhaGifd5peSc"><span style="font-size: 16px;">If you want to learn more about Copy Trade, check out the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trading-tutorial-app-390734907452925952">MEXC Copy Trade Tutorial (App) </a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trade-tutorial-website-390797347687474176">MEXC Copy Trade Tutorial (Website) </a>.</span></div><div class="ace-line ace-line old-record-id-Din1dlrqvon8fexLBy8uxd0Msuc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-VfsBduAk9oeljOxNdEvuvaREsdh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-I6H7dZ5cioP6AXxRTyZuROUjssp" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-choose-mexc-copy-trade-traders-273442451564862464" style="font-size: 16px;">How to Choose MEXC Copy Trade Traders</a></div></li><li class="ace-line ace-line old-record-id-KtGXdWXQEogViQxqsWSuiaIqsae" data-list="bullet"><div><a href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920" data-lark-is-custom="true" style="font-size: 16px;">Copy Trading Guide For Lead Traders</a></div></li><li class="ace-line ace-line old-record-id-SKxwdqADwo8r02xycphugyfrsnf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-copy-trade-profit-share-rules-explained-390867312704727040">MEXC Copy Trade Profit-Share Rules Explained</a></span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1inkx1VkHsNp4xYtRyoFsc"><br></div><div class="ace-line ace-line old-record-id-doxusJmBxQffMZHZ2cTWXE9J0Vd"><br></div></div>

MEXC Copy Trade Profit Share Rules Explained

<div data-page-id="RSwNdtusxo3OW8xObNMujgJBsnh" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-QWLRdh3GFo6N1AxElG8uGrEtsrd"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/learn/article/17827791519457">Copy trading</a> is the process of replicating the trades of other traders, including all of their trading actions.</span></div><div class="ace-line ace-line old-record-id-doxus0TAFAr72HoMdB7XrVbX7oB"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusjI555sBQbHadYangJM76Zb"><span style="font-size: 16px;">If you're a standard account holder who doesn't want to miss out on market opportunities, you can choose to follow professional traders and automatically synchronize with their trading activity. To get started, refer to the following guides: "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trading-tutorial-app-390734907452925952">MEXC Copy Trade Tutorial (App) </a>" and "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trade-tutorial-website-390797347687474176">MEXC Copy Trade Tutorial (Website)</a>."</span></div><div class="ace-line ace-line old-record-id-doxusgcJP5mnEkblNCs1ftMyNEf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusXkO1CVdnzMeoF1CwqNypmg"><span style="font-size: 16px;">If you have solid trading experience and wish to become a copy trader yourself, read the "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920">Copy Trading Guide For Lead Traders</a>" to learn about the process. As a trader, you also have the opportunity to earn attractive profit-sharing rewards.</span></div><div class="ace-line ace-line old-record-id-doxusFEV5ev2T8ZFDw9AdHK7jQd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuskTvkvEFjHP668GQO2DbMhd"><strong>1. How to View and Edit Profit-Share Information</strong></h2><div class="ace-line ace-line old-record-id-doxusSTM12ylwfX17j1efrKU4Mc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusBROtR78EWEPmSd0rViYaeg"><span style="font-size: 16px;">1.1 Web</span></h3><div class="ace-line ace-line old-record-id-doxusz4hZb7b5HxkCIp7RIiFxJf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusHIDVkqmS9yswvCg50BX4dd"><span style="font-size: 16px;">Open and log in to the <a data-lark-is-custom="true" href="https://www.mexc.com">MEXC official website</a>. Go to <strong>Futures</strong>, then click <strong>Copy Trade</strong> to access the copy trading page.</span></div><div class="ace-line ace-line old-record-id-doxusI5N7J1gJAjV2GZusBZmjtc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;33522739-76f5-4f73-ae46-3e14e8a96074&quot;,&quot;height&quot;:1286,&quot;width&quot;:2874,&quot;currHeight&quot;:1286,&quot;currWidth&quot;:2874,&quot;natrualHeight&quot;:1286,&quot;natrualWidth&quot;:2874,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPPerbZN9zoKodCx7bGZu2I0ms5f%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;PPerbZN9zoKodCx7bGZu2I0ms5f&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:621380,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-LJD4d0SJ3oDLhVx0ko4uXL4esfe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202606111555128075PRly0ekdfcQ83.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQUGVyYlpOOXpvS29kQ3g3YkdadTJJMG1zNWYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTEpENGQwU0ozb0RMaFZ4MGtvNHVYTDRlc2ZlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QUGVyYlpOOXpvS29kQ3g3YkdadTJJMG1zNWYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PPerbZN9zoKodCx7bGZu2I0ms5f/?mount_node_token=LJD4d0SJ3oDLhVx0ko4uXL4esfe&amp;mount_point=docx_image" data-width="2874" data-height="1286" data-lark-image-uri="drivetoken://PPerbZN9zoKodCx7bGZu2I0ms5f" data-lark-image-width="2874" data-lark-image-height="1286" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxuswLbacvM7BKZv49dzSRueDf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus3wSIpAfSrLDdzrZ9TZj3vc"><span style="font-size: 16px;">On the copy trading page, click the <strong>&gt; </strong>on the name card to enter <strong>My Lead Trades</strong>.</span></div><div class="ace-line ace-line old-record-id-doxusEWLoa19EHfq0NB9BwBzqUf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;01f4eaeb-1a20-4dd3-a141-a464d17a2d4f&quot;,&quot;height&quot;:1220,&quot;width&quot;:2874,&quot;currHeight&quot;:1220,&quot;currWidth&quot;:2874,&quot;natrualHeight&quot;:1220,&quot;natrualWidth&quot;:2874,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDMAfbs8tcoo6JdxUjChun5Tlsvb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;DMAfbs8tcoo6JdxUjChun5Tlsvb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:593898,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-FuvfdXo29oOkZVxFT20uVXbKsKg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155511053aNt18hehiroDL8.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJETUFmYnM4dGNvbzZKZHhVakNodW41VGxzdmIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRnV2ZmRYbzI5b09rWlZ4RlQyMHVWWGJLc0tnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ETUFmYnM4dGNvbzZKZHhVakNodW41VGxzdmIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DMAfbs8tcoo6JdxUjChun5Tlsvb/?mount_node_token=FuvfdXo29oOkZVxFT20uVXbKsKg&amp;mount_point=docx_image" data-width="2874" data-height="1220" data-lark-image-uri="drivetoken://DMAfbs8tcoo6JdxUjChun5Tlsvb" data-lark-image-width="2874" data-lark-image-height="1220" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusxruS4hLPVxEAZyM7kIHlPh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusszfclCJKuLn5eDvgYymZBe"><span style="font-size: 16px;">On the My Lead Trades page, click <strong>Profit Share Stats</strong> to view your total profit share, expected profit share, and profit share ratio. To request a change to your profit share ratio, click the pencil icon.</span></div><div class="ace-line ace-line old-record-id-doxusW721rWKszrzS0DdLeN25ah"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;24312b9c-91d9-4c8b-8565-2c1d19268c0b&quot;,&quot;height&quot;:1376,&quot;width&quot;:2876,&quot;currHeight&quot;:1376,&quot;currWidth&quot;:2876,&quot;natrualHeight&quot;:1376,&quot;natrualWidth&quot;:2876,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FF0x6bZVnbofuIixY8UxuLUfXsec%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;F0x6bZVnbofuIixY8UxuLUfXsec&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:464980,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-WbpXdpUF4oPia1xpYXru65Qrsug"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155512189glUnNcWEZTsxcO.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJGMHg2YlpWbmJvZnVJaXhZOFV4dUxVZlhzZWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiV2JwWGRwVUY0b1BpYTF4cFlYcnU2NVFyc3VnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9GMHg2YlpWbmJvZnVJaXhZOFV4dUxVZlhzZWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/F0x6bZVnbofuIixY8UxuLUfXsec/?mount_node_token=WbpXdpUF4oPia1xpYXru65Qrsug&amp;mount_point=docx_image" data-width="2876" data-height="1376" data-lark-image-uri="drivetoken://F0x6bZVnbofuIixY8UxuLUfXsec" data-lark-image-width="2876" data-lark-image-height="1376" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusU39zwKmguHZV1SyLEt1vTg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusu9lwYyj5Ath9QXWdvpBJ1d"><span style="font-size: 16px;">1.2 App</span></h3><div class="ace-line ace-line old-record-id-doxusIBdkzxzDQ6JWitXRLCV0qg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus84X5C6bFQmhpmSTmFuLUSg"><span style="font-size: 16px;">1) Open and log in to the MEXC App. On the homepage, tap <strong>More</strong> in the quick access section.</span></div><div class="ace-line ace-line old-record-id-KYW8dSe3OoLB38xhahfu6fN5sdN"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFW4SBlbDe1zrqU9gwjdWwb"><span style="font-size: 16px;">2) Under the <strong>Futures</strong> category, tap <strong>Copy Trade</strong>.</span></div><div class="ace-line ace-line old-record-id-IcgRdi3DYo3BilxiQThubMSdsLb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1hWYcQcGiuv45ENOAuks3N"><span style="font-size: 16px;">3) On the Copy Trading page, tap <strong>Lead</strong> <strong>Trade Management</strong>.</span></div><div class="ace-line ace-line old-record-id-RhDrdgYEcoBKj3xnejku9BvbsOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusw1BYrSr3m13MohaCwuat5g"><span style="font-size: 16px;">4) On the <strong>Lead</strong> <strong>Trade Management</strong> page, tap <strong>Profit Share Stats</strong> to view your total profit share, expected profit share, and profit share ratio. To request a change to your profit share ratio, tap the pencil icon.</span></div><div class="ace-line ace-line old-record-id-doxusmnhscON6Pb0DqmIJZ7GWsc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;aa101a32-0f8e-4aef-9a4c-cfbe42405368&quot;,&quot;height&quot;:2164,&quot;width&quot;:4175,&quot;currHeight&quot;:2164,&quot;currWidth&quot;:4175,&quot;natrualHeight&quot;:2164,&quot;natrualWidth&quot;:4175,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FLGEWb4rFoobruZxVwh9u5JVXs6d%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;LGEWb4rFoobruZxVwh9u5JVXs6d&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1526242,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AvyYdgg5KoGQgvxKSV3uyvA7std"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155512050S6awy9oxBxzEIO.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJMR0VXYjRyRm9vYnJ1WnhWd2g5dTVKVlhzNmQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQXZ5WWRnZzVLb0dRZ3Z4S1NWM3V5dkE3c3RkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9MR0VXYjRyRm9vYnJ1WnhWd2g5dTVKVlhzNmQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/LGEWb4rFoobruZxVwh9u5JVXs6d/?mount_node_token=AvyYdgg5KoGQgvxKSV3uyvA7std&amp;mount_point=docx_image" data-width="4175" data-height="2164" data-lark-image-uri="drivetoken://LGEWb4rFoobruZxVwh9u5JVXs6d" data-lark-image-width="4175" data-lark-image-height="2164" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusmG0btqTFmHtfN86p8nQd0e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusBxfhdCRwQq5eECOQZL7qDf"><strong>2. Profit Share Overview</strong></h2><div class="ace-line ace-line old-record-id-ZiOCdZulZoaBnDx0FIsutycks2b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusHJLYi8W5HKz2W6LgHY4ypg"><span style="font-size: 16px;"><strong>Total Profit Share: </strong>Calculated daily at 16:00 (UTC), based on the realized profits from all fully closed copy trade positions over the previous 24 hours. The settlement cycle runs from 16:00 the previous day to 16:00 the current day (UTC). Profit share is only triggered if the follower's total profit during the settlement period is greater than 0. After each settlement, the total profit share is reset to 0.</span></div><div class="ace-line ace-line old-record-id-doxusmOg1hAASKFNHh5K5iFXjpc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxuscvddZCRXtNjlP1JApOqmUd"><span style="font-size: 16px;"><strong>Expected Profit Share: </strong>The total estimated shareable profit since the last settlement, calculated based on the withheld profits from followers. The actual amount distributed will depend on the final settlement result.</span></div><div class="ace-line ace-line old-record-id-doxusFaY9qiPtCpn636kuSZjBml"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusNiPBA8iiXTaxILmYm4Hejf"><span style="font-size: 16px;"><strong>Profit Share Ratio: </strong>The default ratio is 10%. You may apply to change this ratio, with a maximum of one change allowed per day. The result of your application will be communicated via email, SMS, or in-site notification.</span></div><div class="ace-line ace-line old-record-id-doxusgdpktNjeQROBJsHDhO1K3g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusiajcd5MChmUssQuKYvCnyb"><strong>3. Profit Share Calculation</strong></h2><div class="ace-line ace-line old-record-id-doxusFwKkqqkShYcNyiPn8nFWtc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-UWCmd8AHCo9gljx05lJu9ixJsad"><span style="font-size: 16px;">Profit is shared with the trader only when the total realized profit from all fully closed follower positions is greater than 0.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-HyTbdZ65LozEUUxIAIiuZmdjsHh"><span style="font-size: 16px;">Partially closed positions are not eligible for profit share.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-DrDwd0uyjotgWFxD1KPuDImusce"><span style="font-size: 16px;">If a follower has any associated open positions, settlement will be deferred to the next settlement day.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RCzkdPqbOob8xJxCCJVu5HdTsZc"><span style="font-size: 16px;">If a follower unfollows a trader, profit share will be settled immediately.</span></div><div class="ace-line ace-line old-record-id-doxusZzAwV8tX9wcPsg7YDMMS0c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxustssXqsNml0Y5tmnzZ0lDIh"><strong style="font-size: 16px;">3.1 Details:</strong></div><div class="ace-line ace-line old-record-id-doxusvE1damdqoR2rcBpfwfG9qg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFfTT07g8TYlbSIaNmx4V6g"><span style="font-size: 16px;"><strong>Pre-Freeze: </strong>To secure the trader's earnings, when a follower fully closes a position and the realized profit is greater than 0 (since the last settlement), a portion of the profits is pre-frozen in a system intermediary account based on the profit share ratio.</span></div><div class="ace-line ace-line old-record-id-doxus5dPO3pcMECHe3qZYi1a9Re"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusCn5gSkciXRFyyQiyuTfmqe"><span style="font-size: 16px;"><strong>Actual Settlement: </strong>Profit share is settled daily between 16:00–17:00 (UTC), covering the previous day's results. If the realized profit from all fully closed positions since the last settlement is greater than 0, profit share is processed.</span></div><div class="ace-line ace-line old-record-id-doxusmfNrMlXZkQ41nswV8b4RiT"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusfaOgFnsFnKRwoYu5K8kjVg" data-list="bullet"><div><span style="font-size: 16px;"><strong>Formula: </strong>Trader's Actual Profit Share = Total Realized Profit from All Follower Positions × Profit Share Ratio</span></div></li><li class="ace-line ace-line old-record-id-ZkA2d4ii5obSmcxYw23uHRx1szf" data-list="bullet"><div><span style="font-size: 16px;"> If there are multiple followers, this is calculated individually and then totaled.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxusAIBz1SYweQH99sbqU9NuSb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus0r3yqcGShjgiM8QjNDAFpe"><span style="font-size: 16px;"><strong>Pre-Freeze Refund: </strong>Refund = Pre-Frozen Amount - Trader's Actual Profit Share (Any remaining amount after deducting the trader's share is refunded to the follower's Futures account in USDT-M).</span></div><div class="ace-line ace-line old-record-id-doxusZ6qPORGJNspH3VieE9Z3Wc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusJh3v99KWacfDYMot3Bp6Be"><span style="font-size: 16px;"><strong>Settlement Time: </strong>Profit share is settled daily from 16:00 to 17:00 (UTC). Typically, all settlements are completed by 17:00.</span></div><div class="ace-line ace-line old-record-id-YSSRdWVavoWBhrxsK3JuDWNXsUc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WrOvdxpvtorOwlxRqYJuFRvwsGf"><span style="font-size: 16px;"><strong>3.2 Example of Realized </strong><strong>PNL</strong><strong> Profit Distribution Process for Followers:</strong></span></div><div class="ace-line ace-line old-record-id-YjtVdyQBOorQ4hxIInaumd7BsDb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UTFUdvNYIoMJVwxxphruN5fispb"><span style="font-size: 16px;">Assume User A follows Trader B with an initial investment of 1,000 USDT. Trader B has a profit-share ratio of 10%.</span></div><div class="ace-line ace-line old-record-id-DV7fd5VIPoj3MUxj1A1uyp8Qsde"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Z9yodFu5eoYStxxaVL6u9rq8sYd"><strong style="font-size: 16px;">Day 1:</strong></div><div class="ace-line ace-line old-record-id-NPnVd5MNzoHbLnxFhcwuQ1c4srg"><span style="font-size: 16px;">User A generates a profit of 200 USDT from copying Trader B's trades. As per the 10% profit-share agreement, 20 USDT is allocated to Trader B. After the profit distribution, User A’s assets amount to 1,180 USDT.</span></div><div class="ace-line ace-line old-record-id-ST9JdTEF3ohmY2x2PoguS0QcsFc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VO33diLAQoS9oFx4XcSuNUbXs5g"><strong style="font-size: 16px;">Day 2:</strong></div><div class="ace-line ace-line old-record-id-V0QKdQiVSolLyExEsxnuTpaTspv"><span style="font-size: 16px;">The daily loss is 150 USDT. The cumulative PNL since the last profit distribution (after Day 1) is now -150 USDT. As this is negative, no profit share is distributed. User A’s assets drop to 1,030 USDT.</span></div><div class="ace-line ace-line old-record-id-YRFVdd9m5oZMX9xx4kSumkhKsCd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BZANdZcZ2oFJOjxQS8NuOwKjscW"><strong style="font-size: 16px;">Day 3:</strong></div><div class="ace-line ace-line old-record-id-WAaKd8ODtoz1OVxttECutaG6snc"><span style="font-size: 16px;">A profit of 100 USDT is recorded. The cumulative PNL since the last profit-sharing event is now -50 USDT (-150 + 100). As it remains negative, no profit share is distributed. User A’s assets rise to 1,130 USDT, still below the previous benchmark of 1,180 USDT. </span></div><div class="ace-line ace-line old-record-id-Tg1Td8UWioyzsRxlExxu3Scasnd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CQuFdDFmzokm0cxORQGugXsHsjb"><strong style="font-size: 16px;">Day 4: </strong></div><div class="ace-line ace-line old-record-id-RdCpdkwBjofgDlxNadyuxMXvs0c"><span style="font-size: 16px;">A profit of 100 USDT is again recorded, bringing the cumulative PNL to +50 USDT. Since this figure is now positive, a 10% share, equivalent to 5 USDT, is allocated to Trader B. Before profit sharing, User A’s assets reach 1,230 USDT; after the deduction, the final asset is 1,225 USDT.</span></div><div class="ace-line ace-line old-record-id-T2qMdmWmnoTCMCxUHNduD5NhsKc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Kg1adgMXlonvDZx2S3Quv8wLsjb"><strong style="font-size: 16px;">Day 5 onwards:</strong></div><div class="ace-line ace-line old-record-id-OBn2daXcJoOchbxlU22uSZ1CsTc"><span style="font-size: 16px;">Profit sharing only applies when User A’s assets exceed the most recent post-distribution benchmark (currently 1,225 USDT), meaning cumulative PNL since the last profit share must be positive.</span></div><div class="ace-line ace-line old-record-id-SLxEdU7ANol24dx3afOuHxBWs8G"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BAIod4VxLoT7SOxBH4DuLxT2sEM"><span style="font-size: 16px;">The profit distribution process is illustrated in the table below: </span></div><div><table class="ace-table" data-ace-table-col-widths="67;100;100;112;100;100;100;123" style="border:none;border-collapse:collapse;table-layout:fixed;width:500px;"><colgroup><col width="67"><col width="100"><col width="100"><col width="112"><col width="100"><col width="100"><col width="100"><col width="123"></colgroup><tbody><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-XEsvdxkm7ovSjyxLhWuuycJqsvd"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-OZipde6pxoawVrxSj85uBParsNf"><span style="font-size: 16px;">Daily Initial Asset </span></div><div style="text-align:center" class="ace-line ace-line old-record-id-Owsqd9qRAonx7pxOkCgufqeasUd"><span style="font-size: 16px;">(USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-B2J6dKnURox1ygxX092u4JeJsPc"><span style="font-size: 16px;">Daily PNL (USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-CgcodOhFsoBCyaxf8mbubx5ksth"><span style="font-size: 16px;">Assets Before Profit Sharing</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-DfyTdG6nhorVHMxCGK3uwZ5dsfe"><span style="font-size: 16px;">(USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-ZH09dqBxPopuaYxM2jXulrNgs8c"><span style="font-size: 16px;">Net Profit?</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-L3LxdU9GwolJD7xn7gIui5Lqs7e"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-FQMXd2cAWoWRbIx3y4buUG9fsVf"><span style="font-size: 16px;">Cumulative PNL After Profit Distribution</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-PIkKdwf63o7xzDx1HEQu26LMs4f"><span style="font-size: 16px;">(USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-QlXJdUlogocRebxY1aMut68bslb"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Jbp7d2aYPoHMNkxUlzkugygFshh"><span style="font-size: 16px;">10% Profit Share to Trader B</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-BE6HdlJXgoGZ52xSeJ0u7eGYsCg"><span style="font-size: 16px;">(USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-BfMUdARtEogHerxz2Wwu3ecysMc"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-G96FduRkKotl75x0qzvuQp1Hsvb"><span style="font-size: 16px;">Assets After Profit Distribution</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-S15Vdl8dfo5b5bxSC3duf6XhsUc"><span style="font-size: 16px;">（USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-YrqKd18Zroc4W0x0zjNuYBlOsSe"><span style="font-size: 16px;"><br></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Rfq9dL2NMo6741xRM5dujsk7sjh"><span style="font-size: 16px;">Day 1</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-OVBWd4kvooEx6FxyeH8uU1jysfh"><span style="font-size: 16px;">1,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-JGr2dgZYDoVYxaxuvJMug7wPssg"><span style="font-size: 16px;">+200</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-PXFpdHA4UoallvxYzC0u4ddjsHU"><span style="font-size: 16px;">1,200</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-F5QIdZqhPokOdWx7kfEuXytKsEg"><span style="font-size: 16px;">✅</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-HEbVdiuKhoeMCVxco3duby4usDb"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-L8dedxvkNoIQalxszIsuP6fIsHe"><span style="font-size: 16px;">-20</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-ZNVKdzjkpoLCFaxj070uUBvtscc"><span style="font-size: 16px;">1,180</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Z3K3dluJ4oV51Ix6Q5XupPQksVc"><span style="font-size: 16px;">Day 2</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-TI1WdwCinoO8R4xGEt1usCUusYe"><span style="font-size: 16px;">1,180</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-WwdldwOAqoWDkMxvzv0u60dIsUg"><span style="font-size: 16px;">-150</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-McJmd6ytZoJbEaxvt48u5Ga8skf"><span style="font-size: 16px;">1,030</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Mbn2dFdwHoMYz3xZO3pui47ZsTc"><span style="font-size: 16px;">❌</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-J7JWdsUL7o2H0dxHZxeu7zFhsUd"><span style="font-size: 16px;">-150</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-PtOvd59vAo00kBxXopruZq4Tsjc"><span style="font-size: 16px;">0 </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-EnytdCQUMoYeOkxZobTut0x9s5e"><span style="font-size: 16px;">1,030</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-SU4udQQU3oX961xj2nquIoXBsog"><span style="font-size: 16px;">Day 3</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-DVT5dvFY1o8Ty2xqhhauFdYrsAf"><span style="font-size: 16px;">1,030</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-QouDdzqXSohEeTxeF5ku2a5dsrd"><span style="font-size: 16px;">+100</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-FU7AdknHyoeidSxNIkGuxaKrsXg"><span style="font-size: 16px;">1,130</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-GSYPdgjIoosrFcxzJ6Hui1wNsMb"><span style="font-size: 16px;">❌</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-BxkUdwwlPoNjVgx6iZMuWjdAsoj"><span style="font-size: 16px;">-50</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-TWzvdv6cmoGnRYxLnbOupArXsRe"><span style="font-size: 16px;">0</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-NCtZdbfRdovvynxUXNPuLN3isRe"><span style="font-size: 16px;">1,130</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-HCYodYGd9ozClkxeCz0uEpw3s7P"><span style="font-size: 16px;">Day 4</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-RvQBdRsdxolFRYxbihbuUcJbs0f"><span style="font-size: 16px;">1,130</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-MmrsdVT3zoQNabx8ixVuV8SOsqh"><span style="font-size: 16px;">+100</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-NsuTdsLjqovLKtxXnTyu4MgSsVG"><span style="font-size: 16px;">1,230</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-H9zyd5sGnoay5jxNsr9uUtcisde"><span style="font-size: 16px;">✅</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-EpYtd6NfeoH2owxK1FduXo6NsAc"><span style="font-size: 16px;">+50</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-SFUkdySqeoMJoHxIxVquzXB4sWf"><span style="font-size: 16px;">-5</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-RN1Jd4RoxozudPxgjNmu7kgtsJd"><span style="font-size: 16px;">1,225</span></div></td></tr></tbody></table></div><div class="ace-line ace-line old-record-id-BR15dJav0ohpMQxoelmuxxhIsjc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ULV8dQqd7oPlbDxp9LWuILk6sCc"><span style="font-size: 16px;"><strong>Result:</strong> User A's assets = 1,000 (initial capital) + 250 (cumulative realized PNL) – 25 (profit share amount) = 1,225 USDT.</span></div><div class="ace-line ace-line old-record-id-WZAOdUqUrocDm0xIc1Du6UZvsHd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X06od5qL8ocKGlx5jPsumVzxs9b"><span style="font-size: 16px;">Profit sharing is only triggered when the Follower's assets increase relative to the last profit-sharing settlement. In other words, the cumulative realized PNL since the most recent profit distribution must be positive for a new round of profit sharing to occur. If the Follower’s assets have declined during this period, meaning the cumulative realized PNL is negative, no profit share will be allocated to the trader.</span></div><div class="ace-line ace-line old-record-id-M6UidOm94oZbjsxdnvHuh6mWsdc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MTG7dSiOYoOAI9xrRDKujYnRsGh"><strong style="font-size: 16px;">Notes:</strong></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-LqxwdyMWYoKFZUxyflAu2m2IsJP" data-list="bullet"><div><span style="font-size: 16px;">The calculations above are for illustrative purposes only. All types of trading-related fees have been excluded.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-C3SCdoiloo3DtFxDsm2u8xoDsre" data-list="bullet"><div><span style="font-size: 16px;">Profit share is settled only if the Follower has no active positions (i.e., fully closed all positions) tied to the Trader at the time of settlement.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxus1cAWthNcI7alo6GFx76ziC"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMPOEEIQxvatoP68a4FiKIg"><strong>4. Expected Profit Share Calculation</strong></h2><div class="ace-line ace-line old-record-id-doxusEPocLIuhSnJjmDlWIuvzrh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1pSqJufrInztrJ7W79UBPb"><span style="font-size: 16px;">Expected Profit Share = Sum of Withheld Profits from Followers</span></div><div class="ace-line ace-line old-record-id-doxusWkub0WsmgAYqN4SSbcEYGb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusEXmwBKFgUujponG7irdZWo"><span style="font-size: 16px;">For traders with multiple followers, the withheld profit from each follower is calculated separately and then totaled.</span></div><div class="ace-line ace-line old-record-id-doxust6bJ7CA8WUl3Xer6ye7TJe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusPI8Bh5ENCHz0Mxpwz3AsRh"><span style="font-size: 16px;">Estimated profit updates every 5 minutes. This is for reference only: the final settled amount may deviate from the estimate.</span></div><div class="ace-line ace-line old-record-id-doxus8pxa6J6KhnRTh9dsSO22gh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1OyxDVLHm8rESLAVGvFxQd"><strong style="font-size: 16px;">Example:</strong></div><div class="ace-line ace-line old-record-id-doxusdWvAsWUyqoudvHCDU9geWc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus2ABI5nbvYPRDCV9s5YzFne"><span style="font-size: 16px;">Trader A (profit share ratio: 10%) has one follower, B. On a given day, trader A opens two copy trading positions, and follower B mirrors both. Later, follower B fully closes one position while the other remains open.</span></div><div class="ace-line ace-line old-record-id-doxusJ9287hlKw8B1rTAPtw33oh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CIEhdltjmouCu5xilT2up15RsGf"><span style="font-size: 16px;">The closed position by follower B has a realized profit of 100 USDT. Withheld profit share = 100 × 10% = 10 USDT</span></div><div class="ace-line ace-line old-record-id-doxus1d6IrTonp1m4Yjx5XSCICe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusGmiOrPR9dTaLnUQvqUsFRh"><span style="font-size: 16px;">Trader A's Estimated Profit Share = 10 USDT</span></div><div class="ace-line ace-line old-record-id-HKbfdVmCooBDdzxyCGUukIXcsFc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ZRTPdIby3oBF5fxjOotufYEWsxg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-TwNnd5lZDojFOlxbcjlu2yw1sCd" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-choose-mexc-copy-trade-traders-273442451564862464" style="font-size: 16px;">How to Choose MEXC Copy Trade Traders</a></div></li><li class="ace-line ace-line old-record-id-UdsedkiTioUaeZx1D2ju4jXSs5P" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-copy-trade-terms-explained-390860380627510272" data-lark-is-custom="true" style="font-size: 16px;">MEXC Copy Trade Terms Explained</a></div></li></ul><div class="ace-line ace-line old-record-id-doxusLcjc6Eeu5wCTMFqbosP9Lg"><br></div></div>

MEXC Futures Funding Rate: Calculation Methods and How to View Funding Rates

<div data-page-id="CXRJd6HiXogr2hxShYAuMU6hs4f" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusYmTRaU7SMSgW47g7672QRf"><strong>1. What Is the Funding Rate?</strong></h2><div class="ace-line ace-line old-record-id-doxuslTK8YR7hSYOnxSc4YCQ0Zd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TiwYdmKXpok7UqxlsVeuVBZ6sDG"><span style="font-size: 16px;">The<a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list"> funding rate</a> is a key mechanism in the perpetual futures market that helps keep futures prices aligned with spot prices. Through this mechanism, long and short position holders periodically pay fees to each other at a fixed rate. MEXC does not charge any fees for funding payments.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-ITeAdGB3eoKbAyxyxgFuJCL1sUd" data-list="bullet"><div><span style="font-size: 16px;"><strong>Positive </strong><strong>funding rate</strong><strong>:</strong> Long position holders pay funding fees to short position holders</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-AhrGdZ6OcouoMkxiyb4uG9OlsCd" data-list="bullet"><div><span style="font-size: 16px;"><strong>Negative </strong><strong>funding rate</strong><strong>:</strong> Short position holders pay funding fees to long position holders</span></div></li></ul><div class="ace-line ace-line old-record-id-MAfddoNxXofryMxMfOKutrpns0d"><span style="font-size: 16px;">The funding fee is calculated as follows: <strong>Funding Fee = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong></span></div><div class="ace-line ace-line old-record-id-XHsidbTeIo8RhRxsDWbuwkJlsNd"><span style="font-size: 16px;">Note that funding fee deductions may affect your liquidation price and final PNL. Funding settlement times vary by trading pair. Please refer to the information displayed on the official MEXC website for the exact schedule.</span></div><div class="ace-line ace-line old-record-id-doxusZBWXaJfOOzUZVkV8dplOfc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FzMudN3UFopYlNxbGN5uIamfsHb"><strong>2. Why Do Perpetual Futures Require a Funding Rate Mechanism?</strong></h2><div class="ace-line ace-line old-record-id-doxusGvO4mDvMflMQlpy9JtrWEh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusVCcf4xdenVMrVUpzPBrAib"><span style="font-size: 16px;">The funding rate exists due to dynamic changes in market supply and demand. When a large number of traders hold positions in the same direction, futures prices may deviate from the underlying spot index price, potentially causing abnormal market fluctuations.</span></div><div class="ace-line ace-line old-record-id-W4Jadwcqpo4F1Mxptgnuhtuts5d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-At7UdZNaCosMDlxMupouHkGLs2d"><span style="font-size: 16px;">The funding rate mechanism uses economic incentives to guide trader behavior, encouraging futures prices to realign with the underlying asset price. This mechanism effectively prevents excessive price deviations and reduces the risk of market manipulation. For experienced traders, funding rates can also present additional profit opportunities.</span></div><div class="ace-line ace-line old-record-id-doxusu8xg8PjkJHmhZc6WU1Pyxe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-RaBmdjbWYonHA9x0lTquTcxnswg"><strong>3. How to Check the Current Funding Rate on MEXC?</strong></h2><div class="ace-line ace-line old-record-id-doxusTaDVGlmT0mCeXsHKD71Ptb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QSvSdImtsoiASExthTlumvvzscd"><span style="font-size: 16px;">On the MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures trading</a> page, you can directly view the current funding rate and the funding countdown for each Futures trading pair. As funding rates differ across trading pairs, simply switch between pairs to check the relevant information.</span></div><div class="ace-line ace-line old-record-id-doxusgnRZtLaCrSXc282Ewx4MDf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusNT5CIattqgrH3sn4YJZXlh"><span style="font-size: 16px;">*BTN-<strong>Open Futures Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a>* </span></div><div class="ace-line ace-line old-record-id-doxus7sfacjOXtXXmt4DBfSEp3g"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;dff50b66-1fb3-4126-b9bc-9e7bc2eae236&quot;,&quot;height&quot;:2259,&quot;width&quot;:5277,&quot;currHeight&quot;:2259,&quot;currWidth&quot;:5277,&quot;natrualHeight&quot;:2259,&quot;natrualWidth&quot;:5277,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXAHZbsME1oVwynxgieJui7IOspd%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;XAHZbsME1oVwynxgieJui7IOspd&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:4151995,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusgDpRC0Ovm1tewa2B8gT9Fg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125529487T6R2KJAUYDN3sC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYQUhaYnNNRTFvVnd5bnhnaWVKdWk3SU9zcGQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNnRHBSQzBPdm0xdGV3YTJCOGdUOUZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YQUhaYnNNRTFvVnd5bnhnaWVKdWk3SU9zcGQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XAHZbsME1oVwynxgieJui7IOspd/?mount_node_token=doxusgDpRC0Ovm1tewa2B8gT9Fg&amp;mount_point=docx_image" data-width="5277" data-height="2259" data-lark-image-uri="drivetoken://XAHZbsME1oVwynxgieJui7IOspd" data-lark-image-width="5277" data-lark-image-height="2259" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusA23gYBdvGrm23lwpsPQPqd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusaqi9bMux7vQUoTnWzGzi5e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Z66SdazVLoPmg2xo3c9uuRpYsHh"><strong>4. Detailed Funding Fee Calculation Methods</strong></h2><div class="ace-line ace-line old-record-id-doxusAtpSgoXdYMUcYYB8YFqbih"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PjzfddSV0oACvLxREJZuvybxsCf"><span style="font-size: 16px;">MEXC supports two Futures modes, each with a slightly different funding fee calculation method.</span></div><div class="ace-line ace-line old-record-id-doxuspjtdq0UgPlm5KuNCQZYb9c"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-EwL3d0QlbodNpjx1ygZulymWswc"><span style="font-size: 16px;">4.1 Funding Fee Calculation for Stablecoin-Margined Futures </span></h3><div class="ace-line ace-line old-record-id-doxusVuIicVQRb40zzhwBJI3IAc"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-O6DgdJHSEoFIG2xs9f2ubVAIslh"><span style="font-size: 16px;"><strong>Funding Fee</strong><strong> = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong> <strong>Position Value = </strong><strong>Position Size</strong><strong> (</strong><strong>crypto quantity</strong><strong>) × Fair Price</strong></span></div><div class="ace-line ace-line old-record-id-doxusDq0pMbXpPi2BCX4dXLMQkf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WSfidrVveozoN2xWGWmu6HBxs0c"><span style="font-size: 16px;">Example: Assume Trader A holds a long position of 10 BTC in BTCUSDT Perpetual Futures. The current fair price is 10,000 USDT, and the funding rate is 0.01%.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-DP0Fd84tpoi9ZHxlQFMuHh2qsyd" data-list="bullet"><div><span style="font-size: 16px;">Position value = 10 × 10,000 = 100,000 USDT</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-XqcmdBeoBoxXX8xkaZxu7JNxstf" data-list="bullet"><div><span style="font-size: 16px;">Funding fee = 100,000 × 0.01% = 10 USDT</span></div></li></ul><div class="ace-line ace-line old-record-id-CnZodKT3ioEAoixXKtPueNj0spC"><span style="font-size: 16px;">Since the funding rate is positive, Trader A (the long position holder) must pay 10 USDT, while short position holders with the same position size will receive 10 USDT.</span></div><div class="ace-line ace-line old-record-id-doxus1diEDMQsShxHsGlohcCV8f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-P3Bqd57XHox8WzxU1VsumPLsswc"><span style="font-size: 16px;">4.2 Coin-Margined Futures Funding Fee Calculation</span></h3><div class="ace-line ace-line old-record-id-doxus5zVV5qgMHhV8r1kemp07Cd"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-SSSfdAsyYoFS9ixofOHufBuTsPe"><span style="font-size: 16px;"><strong>Funding Fee</strong><strong> = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong> <strong>Position Value = </strong><strong>Position Size</strong><strong> (Cont) × </strong><strong>Contract</strong><strong> Value</strong><strong> / Fair Price</strong></span></div><div class="ace-line ace-line old-record-id-doxusUmkWpSALgPitutqZg4xxge"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XFFkdCRjhoO0ucxP4Tmu5NCAsne"><span style="font-size: 16px;">Example: Assume Trader A holds 100 cont. of BTCUSD long position, with each cont. having a value of $100. The current fair price is 10,000 USDT, and the funding rate is 0.01%.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-YHr0d9tuhoqMdixNddduYWmds6c" data-list="bullet"><div><span style="font-size: 16px;">Position value = 100 × 100 / 10,000 = 1 BTC</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-TDfldPQdvo3OthxmHzsuxlJQsOc" data-list="bullet"><div><span style="font-size: 16px;">Funding fee = 1 BTC × 0.01% = 0.0001 BTC</span></div></li></ul><div class="ace-line ace-line old-record-id-FRMPdlkVfoX9MfxzC20u9ceasyb"><span style="font-size: 16px;">Since the funding rate is positive, Trader A must pay 0.0001 BTC, while the corresponding short position holders will receive 0.0001 BTC.</span></div><div class="ace-line ace-line old-record-id-doxusVXpd5jGY2DHOqJxYSK1vBc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Hf6rdL1rYoLBN4xa59Ju0AsssBf"><strong>5. Funding Settlement Time and Fee Rules</strong></h2><div class="ace-line ace-line old-record-id-doxusSgeRLR7u9ztuAgEcgiYcEg"><br></div><div class="ace-line ace-line old-record-id-WmhLdBm8HoeAZKxT3Qlu01N3sqe"><span style="font-size: 16px;"><div data-page-id="CXRJd6HiXogr2hxShYAuMU6hs4f" data-lark-html-role="root" data-docx-has-block-data="false"><div class="ace-line ace-line old-record-id-MCa8dCjQeo4A9ex0sU7unQoesXc">Funding fees are generally settled every 8 hours, at 00:00, 08:00, and 16:00 (UTC). Only users who hold open positions at the settlement time are required to pay or receive funding fees. Positions closed before the settlement time will not incur any funding fees. The entire process is fully automated, with funding fees directly exchanged between Futures position holders.</div><div class="ace-line ace-line old-record-id-OUNddfg1po6X6Mxx9n4ujdpAsob"><br></div><div class="ace-line ace-line old-record-id-Wvdud9EevoQPxXxsRqzuBUsIs1Z">Please note:</div><div class="ace-line ace-line old-record-id-KA7ldmJTjoNtSZxep8LunHkbsqp">1. Funding fee settlement may be delayed by up to 15 seconds due to batch processing. Positions opened shortly after the settlement time, such as 08:00:05 (UTC), may still be included in the current settlement, whether the trader pays or receives the fee.</div><div class="ace-line ace-line old-record-id-N54kd291poDdMzxpmTIuRJPBsUh">2. Funding fee settlement times may vary by Futures trading pair. Please refer to the product page for details.</div></div></span></div><div class="ace-line ace-line old-record-id-doxusbQcD0YIs2YrJ0zFpJZqv8c"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxus7pgcc10zKg1LUnhwohUpMf"><span style="font-size: 16px;">*BTN-<strong>View Funding Rates</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list">https://www.mexc.com/futures/information/funding_list</a>* </span></div><div class="ace-line ace-line old-record-id-doxusnx5QI31F2FURUXktnXG9Sg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-CDEvdPTaloPCnwxr5FauTMpvsMc"><strong>6. How to Check Paid or Received Funding Fee Records?</strong></h2><div class="ace-line ace-line old-record-id-doxusrGqmNal4n2dCSs7fFI4a4f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QHQQdQe09o4vgSxe0WduJ8OQsbf"><span style="font-size: 16px;"><strong>Web: </strong>Go to the<strong><a data-lark-is-custom="true" href="https://www.mexc.com/futures/orders/contract?type=funding">Orders</a></strong> page and select <strong>Funding Fees</strong> to view detailed records.</span></div><div class="ace-line ace-line old-record-id-doxus1uSZpqNfhf3NmUdulJaCth"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;086f11d0-e490-4fce-97df-83463eb14132&quot;,&quot;height&quot;:808,&quot;width&quot;:2938,&quot;currHeight&quot;:808,&quot;currWidth&quot;:2938,&quot;natrualHeight&quot;:808,&quot;natrualWidth&quot;:2938,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FR2AebnoT4ovATKx6KnlunWPvsRg%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;R2AebnoT4ovATKx6KnlunWPvsRg&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:227687,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusSz0KXi8GcrJkwAOWgznVhu"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125523868JLt0i36E1jaWLt.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJSMkFlYm5vVDRvdkFUS3g2S25sdW5XUHZzUmciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNTejBLWGk4R2NySmt3QU9XZ3puVmh1Iiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9SMkFlYm5vVDRvdkFUS3g2S25sdW5XUHZzUmcvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/R2AebnoT4ovATKx6KnlunWPvsRg/?mount_node_token=doxusSz0KXi8GcrJkwAOWgznVhu&amp;mount_point=docx_image" data-width="2938" data-height="808" data-lark-image-uri="drivetoken://R2AebnoT4ovATKx6KnlunWPvsRg" data-lark-image-width="2938" data-lark-image-height="808" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusLWOdkEOU07iLwJ9BN3JqDc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JMBHdoGrCofYwfxY7jrupN3lsRc"><span style="font-size: 16px;"><strong>App: </strong>Tap <strong>Profile Icon</strong> → <strong>Transactions</strong> → <strong>Futures Orders</strong> → <strong>Capital Flow</strong>, then use <strong>Filter</strong> to select <strong>Funding Fee</strong>and tap <strong>Confirm</strong> to view the records.</span></div><div class="ace-line ace-line old-record-id-doxustzILzJISXWVdRR8hYSKmYf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;95cf3a53-ce54-4336-8f1c-068eb7cced7e&quot;,&quot;height&quot;:2160,&quot;width&quot;:4173,&quot;currHeight&quot;:2160,&quot;currWidth&quot;:4173,&quot;natrualHeight&quot;:2160,&quot;natrualWidth&quot;:4173,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FUGSxbuTGuoFTFxxJSVQuoAoxsAh%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;UGSxbuTGuoFTFxxJSVQuoAoxsAh&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:2235491,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusHzB8309sCwv9dNSzjNSvvf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125528599aENITioW947SUC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJVR1N4YnVUR3VvRlRGeHhKU1ZRdW9Bb3hzQWgiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNIekI4MzA5c0N3djlkTlN6ak5TdnZmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9VR1N4YnVUR3VvRlRGeHhKU1ZRdW9Bb3hzQWgvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/UGSxbuTGuoFTFxxJSVQuoAoxsAh/?mount_node_token=doxusHzB8309sCwv9dNSzjNSvvf&amp;mount_point=docx_image" data-width="4173" data-height="2160" data-lark-image-uri="drivetoken://UGSxbuTGuoFTFxxJSVQuoAoxsAh" data-lark-image-width="4173" data-lark-image-height="2160" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusK4fjJ0OgldZBzbyjO5TlBd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusi6MZOn4Y9QYjZb136F53Ag"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-QLNLdN35qozUtJx9GuCuwYeEsyh"><strong>7. How to View Historical Funding Rate Data?</strong></h2><div class="ace-line ace-line old-record-id-doxustlJ7DlQsKvqVgYgvwZkHsb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BDUsdbip6oXkizxhdzguYk77sRb"><span style="font-size: 16px;"><strong>Web: </strong>Visit the MEXC<strong><a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list">Funding Rate History</a></strong> page to view complete historical data.</span></div><div class="ace-line ace-line old-record-id-RZhEdgTJNokBTdx0Wp2umNGEs4e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-H4goduyjEo77d7xLGw5uptgEsdg"><span style="font-size: 16px;"><strong>App: </strong>From the app homepage, enter <strong>Futures</strong>, tap the <strong>Funding/Countdown</strong> section, then select <strong>View </strong><strong>funding rate</strong><strong> history</strong> to access historical funding data.</span></div><div class="ace-line ace-line old-record-id-doxusfqAV2ZMepxQfRNORVOHZTb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;56c2a5c7-cded-44b5-b3f8-279d02c7cdae&quot;,&quot;height&quot;:2163,&quot;width&quot;:4173,&quot;currHeight&quot;:2163,&quot;currWidth&quot;:4173,&quot;natrualHeight&quot;:2163,&quot;natrualWidth&quot;:4173,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FGkaLbTwgoo43Pcx79PJuNmfysgc%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;GkaLbTwgoo43Pcx79PJuNmfysgc&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:2489218,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusfObgqx8NHCFJxToedmq2be"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125529599phyritCcWEZAud.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJHa2FMYlR3Z29vNDNQY3g3OVBKdU5tZnlzZ2MiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNmT2JncXg4TkhDRkp4VG9lZG1xMmJlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Ha2FMYlR3Z29vNDNQY3g3OVBKdU5tZnlzZ2MvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/GkaLbTwgoo43Pcx79PJuNmfysgc/?mount_node_token=doxusfObgqx8NHCFJxToedmq2be&amp;mount_point=docx_image" data-width="4173" data-height="2163" data-lark-image-uri="drivetoken://GkaLbTwgoo43Pcx79PJuNmfysgc" data-lark-image-width="4173" data-lark-image-height="2163" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusPM9TErHhqg5AjdOkAfLESd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YoyQdbs0AoPZ3xxzi6WuGWewsMb"><span style="font-size: 16px;">Recommended Reading:</span></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-YPSjdtthgoSmvtxDnMOuikt6smf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/futures-trading-faq-305425827477864448">Futures Trading FAQ: A Complete Beginner's Guide</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-OdR0di5iwoDylZxLXoEuRjw7sXf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-the-mexc-app-305421274812529664">How to Trade Futures on the MEXC App</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-OXbAd8r12obgHyxGBfquw2zVs6b" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-mexc-web-305423980641926144">How to Trade Futures on MEXC Web</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-J728dp5edouxUIxX01zujrrWsVh" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/time-in-force-tif-for-futures-trading-305427906242034688">Time in Force (TIF) for Futures Trading: A Complete Guide</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-CO2ddZTT9orF1wxngpjujX1Msrd" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/faq-on-auto-deleveraging-adl-8127010829081">FAQ on Auto-Deleveraging (ADL)</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-FX2CdaleVoYUgkxX7aCu5xy5sMf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/faq-on-index-price-fair-price-and-last-price-7950960183961">FAQ on Index Price, Fair Price, and Last Price</a></span></div></li></ul></div>

How to Trade Stock Futures on MEXC

<div data-page-id="McUEd447ropDvmxtpV0uL9O3sib" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-FqSZddwxKoHcwExUrg1uOPU6scc"><span style="font-size: 16px;">Crypto-based Stock Futures are financial derivatives that combine stocks with the cryptocurrency market through futures trading. These instruments allow investors to use cryptocurrency, such as USDT, as margin to trade stock price movements without actually owning the underlying stocks.</span></div><div class="ace-line ace-line old-record-id-doxusoqC3x7ENUDaVEgOQl0HBeO"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusKjRl2gKsZLV8y0Pvnh4Lig"><strong>1. Key Features of MEXC Stock Futures</strong></h2><div class="ace-line ace-line old-record-id-doxuscmT7eYFrUnodPH5bPmPPac"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KDwGd9jEToNmN6xi2iVuYhdMsbt"><span style="font-size: 16px;">1) Supports 24/7 trading, divided into low-liquidity periods and regular trading hours. Please refer to the trading page for the actual trading hours of each pair.</span></div><div class="ace-line ace-line old-record-id-E1fvdlHIgovXWdxRQoSunSFysOc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ngn0d6AIfoI7UMxeEL6uKQydskc"><span style="font-size: 16px;">2) The underlying price is pegged to the corresponding stock price.</span></div><div class="ace-line ace-line old-record-id-QTsQd8RN7ok59MxxGwkuZV0LsSd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FyvLd0v5wogHUaxP2LRuLRs3ssg"><span style="font-size: 16px;">3) Users can open long or short positions, with leverage of up to 200x. Available leverage varies by Stock Futures contracts. Please refer to the trading page for details.</span></div><div class="ace-line ace-line old-record-id-MXZpde85yoicCIxFSoSuTpTXsVg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FuHadmC9koT0wKxn5Ehu0arqsUc"><span style="font-size: 16px;">4) A familiar perpetual futures trading experience makes it easier for investors to get started and lowers the barrier to trading.</span></div><div class="ace-line ace-line old-record-id-doxusa7sUAO3PYUOLPRG04DFPLe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusEsGVTu3Tk4nucBmXfGlfCg"><strong>2. How to Trade Stock Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-CfgsdhxNEoS9JXxXOjiuF8kzsgd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZwT8dJvmfoKCT1xgxxbuAclas4g"><span style="font-size: 16px;">MEXC has launched a range of Stock Futures, including <a data-lark-is-custom="true" href="https://www.mexc.com/futures/COINBASE_USDT">COIN</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/ROBINHOOD_USDT">HOOD</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/NVIDIA_USDT">NVDA</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/AAPLSTOCK_USDT">AAPL</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/AMZNSTOCK_USDT">AMZN</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/GOOGLSTOCK_USDT">GOOGL</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/METASTOCK_USDT">META</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/TESLA_USDT">TSLA</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/futures/MCDSTOCK_USDT">MCD</a>, and more. The platform will continue to add more Stock Futures to meet users' diverse trading needs.</span></div><div class="ace-line ace-line old-record-id-doxusVWTEGV6Pa6nhTomX42wdLw"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusO5O3PrV8MD0p3zRrMTxEdo"><span style="font-size: 16px;">MEXC Stock Futures use the same trading mechanics and interface as crypto perpetual Futures, significantly lowering the barrier to Stock Futures trading and enhancing the overall trading experience.</span></div><div class="ace-line ace-line old-record-id-doxusW6IX4puDnbfigqszF0jCue"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusbKWAnVkzM6bpHP6pgfxcrd"><span style="font-size: 16px;">On the Futures trading page, search for the Stock Futures contract you want to trade, or select <strong>Stocks</strong> from the section below to start trading.</span></div><div class="ace-line ace-line old-record-id-M2bDd1s34o8qbNxFa3KujYGWsxc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;b4276408-5975-4d5f-9d42-6c3b86360703&quot;,&quot;height&quot;:1478,&quot;width&quot;:2938,&quot;currHeight&quot;:1478,&quot;currWidth&quot;:2938,&quot;natrualHeight&quot;:1478,&quot;natrualWidth&quot;:2938,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FBaBjb0QW2oRREvxUu19u9AOLssb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;BaBjb0QW2oRREvxUu19u9AOLssb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1063761,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-Qxgidka4mo84BhxUUs0ueqd3stF"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260722113354994iMG3ONj75skFXE.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJCYUJqYjBRVzJvUlJFdnhVdTE5dTlBT0xzc2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiUXhnaWRrYTRtbzg0Qmh4VVVzMHVlcWQzc3RGIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9CYUJqYjBRVzJvUlJFdnhVdTE5dTlBT0xzc2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/BaBjb0QW2oRREvxUu19u9AOLssb/?mount_node_token=Qxgidka4mo84BhxUUs0ueqd3stF&amp;mount_point=docx_image" data-width="2938" data-height="1478" data-lark-image-uri="drivetoken://BaBjb0QW2oRREvxUu19u9AOLssb" data-lark-image-width="2938" data-lark-image-height="1478" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusFqH3zhwi4wZ2nicVXyZdfg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusSLaOP8QEhe4mOfYDTPHiHc"><span style="font-size: 16px;">*BTN-<strong>Start Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/COINBASE_USDT">https://www.mexc.com/futures/COINBASE_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-doxus7PUhKzjC6fOGAwR5O9gObZ"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VW6yd476kokaaKxWRMSu6DyKs8e"><span style="font-size: 16px;">Similarly, on the Futures trading page in the MEXC App, search for the Stock Futures you want to trade to start trading. For better experience, please update the MEXC App to version 6.17.0 or later.</span></div><div class="ace-line ace-line old-record-id-doxusN0jTm0u8cebqzdjj3Xcyqd"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;c62617c5-6533-4012-9174-09f6ab12e9d0&quot;,&quot;height&quot;:541.5838926174497,&quot;width&quot;:524,&quot;currHeight&quot;:541.5838926174497,&quot;currWidth&quot;:524,&quot;natrualHeight&quot;:2156,&quot;natrualWidth&quot;:2086,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.25119846596356665,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMEVibbmdPoDrKUxKPm6uGBUPs5c%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;MEVibbmdPoDrKUxKPm6uGBUPs5c&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:913963,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusTvoRrF4G2XbOmYlBBVMdFe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260722113354844UDTJOAdq9X9bR6.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNRVZpYmJtZFBvRHJLVXhLUG02dUdCVVBzNWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNUdm9SckY0RzJYYk9tWWxCQlZNZEZlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NRVZpYmJtZFBvRHJLVXhLUG02dUdCVVBzNWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/MEVibbmdPoDrKUxKPm6uGBUPs5c/?mount_node_token=doxusTvoRrF4G2XbOmYlBBVMdFe&amp;mount_point=docx_image" data-width="2086" data-height="2156" data-lark-image-uri="drivetoken://MEVibbmdPoDrKUxKPm6uGBUPs5c" data-lark-image-width="2086" data-lark-image-height="2156" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxus2lT5w0cGE9uMUQzKPQuITf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusIbQkN9TU21JIQxzqTrI0Je"><strong>3. Important Notes for Trading Stock Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-BNj2d2qGiolgIuxriIRunasHsse"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XX3kdE1ZJoQEbBxpN12urDLpsVu"><span style="font-size: 16px;">1) <strong>Trading Hours: </strong>Supports 24/7 trading.</span></div><div class="ace-line ace-line old-record-id-Clu2ddwvgoiptjxghPqucKTVsPe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LcN5duPPHoj7rgxCZCxue4Bqsih"><span style="font-size: 16px;">2) <strong>Leverage Risk Reminder:</strong> Stock Futures support leveraged trading. Leverage amplifies both profits and losses and may result in liquidation or losses exceeding your margin. Please choose your leverage carefully.</span></div><div class="ace-line ace-line old-record-id-Xa6cd4ibJorsqQxKzfZu3TZqsWH"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ex0Vd8EQioWdyTxtDP5uQYnXs9f"><span style="font-size: 16px;">3) <strong>Low-Liquidity Period: </strong>A term specific to MEXC. During this period, slippage may increase, index prices may pause, and orders, including TP/SL orders, may not be filled. Consider reducing order size or splitting orders. Maximum leverage for some pairs may be temporarily lowered for new orders only. Price gaps or sharp volatility may occur when regular trading resumes.</span></div><div class="ace-line ace-line old-record-id-KQOCdisTioURqPxQYXNuXIbfs4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-G1LtdqSQ8oRe7gxRJCqud4ddsKg"><span style="font-size: 16px;">4) <strong>Special Corporate Events: </strong>During events such as ex-rights issues, stock splits, or reverse stock splits, the platform may apply early settlement or position adjustments based on market conditions. Please monitor updates and manage risk in advance. </span></div><div class="ace-line ace-line old-record-id-doxuspZNWYAUGkjzHLUC9MVeuAb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus9NUMmzJKeJuVTRgfIV3Qif"><span style="font-size: 16px;">Notes:</span></div><div class="ace-line ace-line old-record-id-doxus1OB1DyZK3YWBhFfod4BzTd"><span style="font-size: 16px;">1) <strong>Dividends and ex-rights</strong> refer to corporate actions where profits are distributed to shareholders in the form of cash or stock. On the ex-dividend date, the stock price is adjusted accordingly.</span></div><div class="ace-line ace-line old-record-id-doxusshaJ97Y4TfNceJVDOizRxe"><span style="font-size: 16px;">2) <strong>Stock splits</strong> increase the number of shares outstanding while reducing the price per share, which can improve liquidity. Splits are generally considered a positive signal about a company's growth outlook.</span></div><div class="ace-line ace-line old-record-id-doxusXo02rQH5igYS0EKY5Mn3N3"><span style="font-size: 16px;">3) <strong>Reverse splits (also called stock consolidations)</strong> reduce the number of shares and increase the price per share, often used to meet listing requirements or improve earnings per share.</span></div><div class="ace-line ace-line old-record-id-doxusPIyJt7fcOJYIqyTFgSAPGc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnnwqH26AIkYQiuDnm4v1rm"><strong>4. MEXC Stock Futures FAQs</strong></h2><div class="ace-line ace-line old-record-id-doxusRA6Hwkbysu9N1D8NCDvhVe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusYwauXHYLAgvcORCV05CQ2b"><span style="font-size: 16px;">4.1 How is the fair price calculated?</span></h3><div class="ace-line ace-line old-record-id-JuETd7KjLo539IxadAPuE1alsCb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XCCcdI5mJowQxAxk8p6umSCEsMM"><span style="font-size: 16px;">The fair price is anchored to the latest price of the underlying stock.</span></div><div class="ace-line ace-line old-record-id-NWsQd1T3FoV1ARxINEiubtYRsAf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusdgC5QWNKBTEyTOWqhjOq0g"><span style="font-size: 16px;">4.2 How is PNL calculated?</span></h3><div class="ace-line ace-line old-record-id-doxusu1jvizr7FhdKOW6zS7ZHOd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusfUIvF0L1aGDnA4ogyZdJDb"><span style="font-size: 16px;">For each Stock Futures trade, profit and loss (PNL) is primarily determined by the price difference between the opening and closing prices. Note: Leverage amplifies both potential gains and losses. Actual results depend on the leverage used and position size.</span></div><div class="ace-line ace-line old-record-id-doxusMuckRFcduLScio77TV32cb"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-doxusGejDTfMOCj5kKcV0TW4ycg"><span style="font-size: 16px;"><strong>Formula: PNL = (Closing Price − Opening Price) ×</strong><strong> Leverage </strong><strong>× Number of Shares × Direction</strong> Direction: Long = +1; Short = -1</span></div><div class="ace-line ace-line old-record-id-doxusMyhPvdkjINP6XQl41HDYwd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusMziIGuPfiyxYipknZlVKxd"><span style="font-size: 16px;">Examples:</span></div><div class="ace-line ace-line old-record-id-doxusLDF1iq0gmM0kEYqj9sa9wg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusddsqlWYxzRd8yGZN9TzeSc"><span style="font-size: 16px;">1) Profit from a Long Position: Buy 1 share of Apple (AAPL) at $100 (leverage = 1). When the price rises to $105, close the position.</span></div><div class="ace-line ace-line old-record-id-TBBndR4EeooGDtxkclEuFRmYsZe"><span style="font-size: 16px;">PNL = (105 − 100) × 1 × 1 = $5</span></div><div class="ace-line ace-line old-record-id-doxusmAoCClIsixJW0qAfZVyr3c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusYJAeBFbVhW4mWojBfgpsJh"><span style="font-size: 16px;">2) Profit from a Short Position: Sell 1 share of Tesla (TSLA) at $200. When the price drops to $195, close the position.</span></div><div class="ace-line ace-line old-record-id-GbXGdSoKtoWX3FxQJBVuIuLhsTf"><span style="font-size: 16px;">PNL = (195 − 200) × 1 × 1 × (−1) = $5</span></div><div class="ace-line ace-line old-record-id-doxus9vyyOGPyPeT3mVgwDrsnPh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusLuOoNgO6AxnT2kjLaUjzch"><span style="font-size: 16px;">4.3 What is the risk management system?</span></h3><div class="ace-line ace-line old-record-id-doxusgIry4nl2OBZqp4xLDPD4In"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFGG4aZ9zwmFwZFnw16AF0N"><span style="font-size: 16px;">MEXC implements a risk management system consistent with leading Perpetual Futures platforms:</span></div><div class="ace-line ace-line old-record-id-doxusuCPbaEAqyRcjplIFzVq9ef"><span style="font-size: 16px;">1) The platform continuously monitors users' margin rate in real time.</span></div><div class="ace-line ace-line old-record-id-doxusk9FcWmCWDpAZuExwfdfhyg"><span style="font-size: 16px;">2) Margin ratios are calculated based on the fair price.</span></div><div class="ace-line ace-line old-record-id-doxusTzHTPdcJJ7bVOYle8f2XUd"><span style="font-size: 16px;">3) When the margin rate falls below the maintenance threshold, the system will automatically trigger liquidation to minimize potential losses</span></div><div class="ace-line ace-line old-record-id-doxusTl8BpbUyM3c7f7vAGbONNe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuswVDhSMNpFvF1p338Npuuvb"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-CZGcdyfnYoOkaCxjE6IuXUw5soc" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/realstocks-trading-faq-382924861612411904" style="font-size: 16px;">RealStocks Trading FAQ</a></div></li><li class="ace-line ace-line old-record-id-LWoXdAz3sohCYExZBCEuvOmhsog" data-list="bullet"><div><a href="https://www.mexc.com/support/article/creating-a-realstocks-account-faq-381277028689799168" data-lark-is-custom="true" style="font-size: 16px;">Creating a RealStocks Account FAQ</a></div></li><li class="ace-line ace-line old-record-id-NejTdRLMVo1eMjx97lnuwlY3sMe" data-list="bullet"><div><a href="https://www.mexc.com/learn/article/17827791535795" data-lark-is-custom="true" style="font-size: 16px;">What Is RealStocks?</a></div></li><li class="ace-line ace-line old-record-id-ANQTdgMdeos2qsxFBycuqV9IsCh" data-list="bullet"><div><a href="https://www.mexc.com/learn/article/17827791527002" data-lark-is-custom="true" style="font-size: 16px;">How to Trade Tokenized Stocks on MEXC</a></div></li></ul><div class="ace-line ace-line old-record-id-doxusKAp9q4Vxt6zyb1XOCRhbir"><br></div></div>

How to Use Moving Average Indicators in Trading: A Complete Beginner's Guide

<div data-page-id="Qf8sdUO4roJvP1xHpituldXpsCg" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-JvjjdPMUwolI2Cxjem5uzo1ssZe"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Hfbedhp5voKTZOxeFFAuDi5Nsjf" data-list="bullet"><div><span style="font-size: 16px;">A moving average is a core technical indicator that smooths price fluctuations by averaging historical price data, helping traders identify market trends.</span></div></li><li class="ace-line ace-line old-record-id-GsMgdOpN3o3N8AxqLapumUSwsSg" data-list="bullet"><div><span style="font-size: 16px;">Common types include the simple moving average, exponential moving average, and weighted moving average, each offering different levels of sensitivity and suitable use cases.</span></div></li><li class="ace-line ace-line old-record-id-WWfxdnoxyoSLg1xRbTeu95yCsZf" data-list="bullet"><div><span style="font-size: 16px;">The four main practical uses of moving averages are identifying trend direction, finding dynamic support and resistance, capturing moving average crossover signals, and setting trailing stops.</span></div></li><li class="ace-line ace-line old-record-id-REeDdGQhEorqCrx9i5JubGpyslf" data-list="bullet"><div><span style="font-size: 16px;">Different trading styles call for different moving average settings. Longer periods provide more stable signals, while shorter periods respond more quickly to price changes.</span></div></li><li class="ace-line ace-line old-record-id-WSHxdCLBSobYOCx6DCQu6GGesXd" data-list="bullet"><div><span style="font-size: 16px;">MEXC provides built-in moving average tools with customizable settings that can be used to develop Spot and Futures trading strategies.</span></div></li></ul><div class="ace-line ace-line old-record-id-DGf4d3qUpofo26xuOxFujCgEsWe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-XucWdXhYKoKQCdxSCjUuuQEHs6d"><strong>1. What Is a Moving Average?</strong></h2><div class="ace-line ace-line old-record-id-ZYDPdeLnBoGz4qxQMFfu8mmrsgg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RGYHdE09ZoBAsAxpYWZujOl8slb"><span style="font-size: 16px;">A <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/moving-average-30294">moving average </a>(MA) is a technical indicator that calculates the average price over a specified period and plots the result as a smooth line. Its primary purpose is to filter out the noise created by short-term market fluctuations, allowing traders to see the overall direction of price movements more clearly.</span></div><div class="ace-line ace-line old-record-id-KApedkJwsoeWAbxRFvYuKP17ser"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V9pednQAZo2qadxA19PuP2AisFg"><span style="font-size: 16px;">For example, suppose the closing prices of an asset over the past five trading days were 1 <a data-lark-is-custom="true" href="https://www.mexc.com/price/tether">USDT</a>, 2 USDT, 3 USDT, 4 USDT, and 5 USDT. The five-day moving average would be:</span></div><div class="ace-line ace-line old-record-id-Xo1edvsohoC3yZx0QZYuhj0YswP"><span style="font-size: 16px;">(1 + 2 + 3 + 4 + 5) / 5 = 3 USDT</span></div><div class="ace-line ace-line old-record-id-B5hNdpuixovf6YxuCiCuwYL7sId"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Znf8dKH5Sow2S3x7s6OuYeu0sBd"><span style="font-size: 16px;">When new price data becomes available, the indicator removes the oldest data point and includes the latest one. As a result, the average continuously moves over time, which is where the indicator gets its name.</span></div><div class="ace-line ace-line old-record-id-UT4IdORDnoZvO6xwioPuRbkeshg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;89f7731b-0fe4-4c24-b348-cdcac1e57bc4&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FKvaubycyiokotbxIWKVutyyHsme%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;KvaubycyiokotbxIWKVutyyHsme&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:256365,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-EFwCddD0xojna7xm2nUu9ogwsOh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174310844MhBnMp3DgMoRCJ.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJLdmF1YnljeWlva290YnhJV0tWdXR5eUhzbWUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRUZ3Q2RkRDB4b2puYTd4bTJuVXU5b2d3c09oIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9LdmF1YnljeWlva290YnhJV0tWdXR5eUhzbWUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/KvaubycyiokotbxIWKVutyyHsme/?mount_node_token=EFwCddD0xojna7xm2nUu9ogwsOh&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://KvaubycyiokotbxIWKVutyyHsme" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-Sh1rdSSo4okbizxcWbKu9esnsPs"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-XEJjdZ9cnoWK2ZxW7mlupwNVsmf"><strong>2. Main Types of Moving Averages</strong></h2><div class="ace-line ace-line old-record-id-NiJudGvXtobgw5xvfTauDpcPs3e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RvBIdUYDcoeT4qxHzLNuF7n8smh"><span style="font-size: 16px;">2.1 Simple Moving Average (SMA)</span></h3><div class="ace-line ace-line old-record-id-Z5VIdBqAeo1p1IxV3oculo46s3g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MN7fdTb1VoFooHxOdgYuz4l0sZd"><span style="font-size: 16px;">A simple moving average calculates the average of all closing prices within a specified period, giving each data point equal weight. Its main advantage is that it is smooth and less affected by short-term fluctuations, making it suitable for identifying medium- to long-term trends. However, it reacts more slowly to recent price changes.</span></div><div class="ace-line ace-line old-record-id-MYCEd2cZ4oejJ3xI3zjuGi0KsOg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-SyXMd05f6o6rr9xyVkpuZbVbssh"><span style="font-size: 16px;">2.2 Exponential Moving Average (EMA)</span></h3><div class="ace-line ace-line old-record-id-E2PSdze4KoHM6Lxz2TquTDcDs4g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WqbOdDEdwo2nxKxbT8kuueGEsve"><span style="font-size: 16px;">An <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/exponential-moving-average-ema-30295">exponential moving average</a> assigns greater weight to more recent prices, while older data has less influence on the calculation. As a result, it responds more quickly to current market prices and can help traders identify trend changes sooner. It is commonly used by day traders and swing traders.</span></div><div class="ace-line ace-line old-record-id-NOK4d8QeBoYq7Kxy8VRu2zPbssf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KJl4d3PiKofr7Gx4k5uux91Ls8g"><span style="font-size: 16px;">2.3 Weighted Moving Average (WMA)</span></h3><div class="ace-line ace-line old-record-id-OoQydjDNGohU3hxkVuNuqO51sid"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MmESdq07lo4vLKxGiAZuClxOsEc"><span style="font-size: 16px;">A weighted moving average combines characteristics of both SMA and EMA. It assigns weight to price data on a linear basis, maintaining a degree of stability while tracking recent price movements more closely than a simple moving average.</span></div><div class="ace-line ace-line old-record-id-Hgg9djsH4oxIX4x9y2luKwPhsde"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;78d7d2e6-9a3b-45df-b502-a3ac57961793&quot;,&quot;height&quot;:450,&quot;width&quot;:800,&quot;currHeight&quot;:450,&quot;currWidth&quot;:800,&quot;natrualHeight&quot;:450,&quot;natrualWidth&quot;:800,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPExTbi1v2o5bFCxDzgRuFxKmsrh%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;PExTbi1v2o5bFCxDzgRuFxKmsrh&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:303627,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-MkmOdrn4Eo3fK2xcBEAuuQgns4g"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202607161743112972HSTd7UPB6HjWp.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQRXhUYmkxdjJvNWJGQ3hEemdSdUZ4S21zcmgiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTWttT2RybjRFbzNmSzJ4Y0JFQXV1UWduczRnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QRXhUYmkxdjJvNWJGQ3hEemdSdUZ4S21zcmgvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PExTbi1v2o5bFCxDzgRuFxKmsrh/?mount_node_token=MkmOdrn4Eo3fK2xcBEAuuQgns4g&amp;mount_point=docx_image" data-width="800" data-height="450" data-lark-image-uri="drivetoken://PExTbi1v2o5bFCxDzgRuFxKmsrh" data-lark-image-width="800" data-lark-image-height="450" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-J5psdM2Cjooa5wxuG6su5T7csqc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-LiAqd8YmooxZGKxTSDvuU9IUsbc"><strong>3. Practical Uses of Moving Averages in Trading</strong></h2><div class="ace-line ace-line old-record-id-HZmAdTDx6oDerMxWJcNublq4skh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Qfh6dJwaNoBFQKxzXlGunkStsQe"><span style="font-size: 16px;">3.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-GRd7dAOBDobj19xBCfAuGDVqssc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MZeid4KFAozDKIxbimMuwQA8s4g"><span style="font-size: 16px;">This is the most basic use of a moving average. When the price is above the moving average and the moving average is sloping upward, the market is generally considered to be in an uptrend, and traders may look for long opportunities.</span></div><div class="ace-line ace-line old-record-id-S3sWdxURaoyVqJxfgu6uZoifs5c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FBFsdbRTLowD7gxRWk7u43DIswh"><span style="font-size: 16px;">When the price is below the moving average and the moving average is sloping downward, the market is generally considered to be in a downtrend, and traders may choose to stay on the sidelines or look for short opportunities.</span></div><div class="ace-line ace-line old-record-id-UXtXd1jReoPMjHxMLktuwshVsXf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OmjKdLn3CoKOC0xqnLFuLEdus7d"><span style="font-size: 16px;">Many traders use the 200-period moving average as a key reference for identifying the prevailing trend on their chosen timeframe.</span></div><div class="ace-line ace-line old-record-id-L342dniIfoacXBxt4TEurFbCsrc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-VauGdbC7foJemSxIGekufPajseb"><span style="font-size: 16px;">3.2 Find dynamic support and resistance</span></h3><div class="ace-line ace-line old-record-id-EGsTdt4MSorKicxp03wuL8jRsjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UeMCdP7i1o3jEoxoTy1utY8As9b"><span style="font-size: 16px;">In trending markets, moving averages often act as dynamic support or resistance levels.</span></div><div class="ace-line ace-line old-record-id-Cp4sd6MjTo46t7xqWrEupSOmsdb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Qd3zdpx5JotoTzx3t61uPVivs0c"><span style="font-size: 16px;">During an uptrend, a price pullback toward the moving average followed by a rebound may provide a potential entry opportunity. During a downtrend, a price rally toward the moving average followed by rejection may present an opportunity to exit long positions or open short positions.</span></div><div class="ace-line ace-line old-record-id-CeATd4EfUoEO3lxmSHbunwnmsNd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SjWndQ2nRoEm90xKvLCuLvJNszh"><span style="font-size: 16px;">Compared with entering after a sharp price increase, waiting for the price to return closer to the moving average may provide a smaller stop-loss range and a more favorable risk-reward ratio.</span></div><div class="ace-line ace-line old-record-id-XLk8dc38So6vefxcKFlu8rshsFb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Bf5Ndv7yBomdpaxKbaKuxWwHsDh"><span style="font-size: 16px;">3.3 Use moving average crossover signals</span></h3><div class="ace-line ace-line old-record-id-Rn6bd6EWoobZnCxqKHjuDXhiscf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FyJXdzkSbowU2axunJxu86K4spb"><span style="font-size: 16px;">Moving average crossovers are a classic buy and sell signal:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-CoXUdU6DKoXmD9x4CJ5ueG7IsBu" data-list="bullet"><div><span style="font-size: 16px;"><strong>Golden cross:</strong> A short-term moving average, such as the 50-period MA, crosses above a long-term moving average, such as the 200-period MA. This is generally regarded as a bullish signal and may indicate the beginning of a longer-term uptrend.</span></div></li><li class="ace-line ace-line old-record-id-A5ybdvdL6oAk2hxXj75uPdsPsLf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Death cross:</strong> A short-term moving average crosses below a long-term moving average. This is generally regarded as a bearish signal.</span></div></li></ul><div class="ace-line ace-line old-record-id-ThHxd82EOoHrcFxSZHHuBvC6scb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YJKpdmCcGouPVrxCcyWuTni6s5c"><span style="font-size: 16px;">Moving average crossover strategies tend to work better in markets with clear trends. In sideways markets, however, frequent false signals may occur and lead to repeated small losses. It is therefore recommended to combine moving averages with other technical indicators, such as trading volume and support and resistance levels.</span></div><div class="ace-line ace-line old-record-id-PIE5dZnc0omEyHx7l2aumhi1sWG"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-R9nPdTlCzo626mxmqV5uxvZtsHd"><span style="font-size: 16px;">3.4 Use moving averages as trailing stops</span></h3><div class="ace-line ace-line old-record-id-DGWTdDKSZodKSSxQpd2ugxNUs9e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-StgzdsE2RomlXqx4z8DujXF5sfe"><span style="font-size: 16px;">Traders can also use moving averages to manage trailing stops while holding a position.</span></div><div class="ace-line ace-line old-record-id-RtB4dLKDho8nSjxU4QmuoxpksYd"><span style="font-size: 16px;">For example, when holding a long position, a trader may continue holding as long as the price does not close decisively below the 50-period moving average. Once the closing price falls below the moving average, the trader may close the position.</span></div><div class="ace-line ace-line old-record-id-UHXXdOSlgowBtdxspLlu7cDBs4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GtCNdPLhAo55HVx5MJiuiOHtsUg"><span style="font-size: 16px;">Longer-period moving averages can help traders stay in larger trends, while shorter-period moving averages may help lock in profits earlier and reduce drawdowns.</span></div><div class="ace-line ace-line old-record-id-NmrQdKVjjo2Zbfx7J4qufx3Wsgb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-DrrZdjWWfomly9xjAsgu0tkCsUg"><strong>4. How to Use Moving Averages on MEXC</strong></h2><div class="ace-line ace-line old-record-id-YK3hdM2uEoM5msx1tNAu8azzsve"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jf8qdB1mpoWg2gxsyp2uOzxYsJd"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website</a> → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → MA</span></div><div class="ace-line ace-line old-record-id-EXdDd6iyboZ7AYxTi63u6cNTs6c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZMmudJ8rVoO7i6xF7t2uRDOps1g"><span style="font-size: 16px;">MEXC allows users to customize the moving average period, type, and color. Multiple moving averages can also be displayed at the same time to create a moving average crossover strategy.</span></div><div class="ace-line ace-line old-record-id-DK59d02o7opUmhxqmitu1qAgsPb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YrhXdKkqGow9iYxDYr8uGdGBsth"><span style="font-size: 16px;">Whether trading Spot or Futures, users can incorporate moving averages into their entry, exit, and stop-loss plans to make their trading decisions more disciplined and systematic.</span></div><div class="ace-line ace-line old-record-id-M1iHdVTFdowILpxDgmhuUcA1sCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-MM5SdGXbOosZkTxJtbsu2MSjs5f"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-IcOidF5W8ouOahxettguJ4rdsbg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2aed490a-bc94-4076-84b3-a9f30b345b91&quot;,&quot;height&quot;:639,&quot;width&quot;:1280,&quot;currHeight&quot;:639,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:639,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMparb1xFsoPIAjxAkO2u0KS8sTk%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;Mparb1xFsoPIAjxAkO2u0KS8sTk&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:280073,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-YeUGdtrlUom1pgxGglVucXYlsgc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174311202u4LhUszSOCmN9u.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNcGFyYjF4RnNvUElBanhBa08ydTBLUzhzVGsiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWWVVR2R0cmxVb20xcGd4R2dsVnVjWFlsc2djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NcGFyYjF4RnNvUElBanhBa08ydTBLUzhzVGsvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Mparb1xFsoPIAjxAkO2u0KS8sTk/?mount_node_token=YeUGdtrlUom1pgxGglVucXYlsgc&amp;mount_point=docx_image" data-width="1280" data-height="639" data-lark-image-uri="drivetoken://Mparb1xFsoPIAjxAkO2u0KS8sTk" data-lark-image-width="1280" data-lark-image-height="639" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; width: 750px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-RmEtdAhBQocTm2xW8DEu6ddWsOd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YsmHdWQK3o9X8px3lHLuQiiOs7J"><strong>5. Moving Average FAQ</strong></h2><div class="ace-line ace-line old-record-id-HInRdaHAQomU9sx6bAruNzXPsLg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DyFadKfWdoQUMtx1qQruEO2sssd"><span style="font-size: 16px;">5.1 How do traders use moving averages?</span></h3><div class="ace-line ace-line old-record-id-GZa0dbjqPogdCfxnQCOu7kN1slc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FAUFde35JorgQHxAXvWuzDEzsCg"><span style="font-size: 16px;">Moving averages are mainly used in four ways: identifying trend direction, finding dynamic support and resistance, generating buy and sell signals through moving average crossovers, and serving as trailing stop tools to lock in profits.</span></div><div class="ace-line ace-line old-record-id-M2DJd1WqnoY9T0xS5Wcuj9aFsPd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IsRBd0fNnoCIqqxElPDuYD9mspf"><span style="font-size: 16px;">5.2 How do I use the 50-period and 200-period moving averages?</span></h3><div class="ace-line ace-line old-record-id-IiRQdBzKvoqqeWxSygTuImRksAe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KqjKdyGglod2bexHpj7uC5rostc"><span style="font-size: 16px;">The combination of the 50-period and 200-period moving averages is a widely used approach to identifying long-term trends.</span></div><div class="ace-line ace-line old-record-id-Ga13dcu9VocAOwxyjg8uueqKsqd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-N1c4d4DOfoMHjhxZKEauInA5soc"><span style="font-size: 16px;">When the 50-period moving average crosses above the 200-period moving average, it forms a golden cross and is generally considered bullish. When it crosses below the 200-period moving average, it forms a death cross and is generally considered bearish.</span></div><div class="ace-line ace-line old-record-id-AZsBd8zgkouqYJxjH2eugX5Wsaf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GbsqdKKFloM0QixAEsXu90pksKb"><span style="font-size: 16px;">The position of the price relative to the 200-period moving average is also an important reference for identifying bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-PgtAdz23hoVTuVx1QuWumEiPscf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-XXfzdcPi9oBhs8xf9gZuCPjesKc"><span style="font-size: 16px;">5.3 Should I use a 200-period EMA or SMA?</span></h3><div class="ace-line ace-line old-record-id-YmRbdCwUIoAwEfxjUHFugLFWsNb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VI0EdKj59onnQqxNLb3uSJ9Gsuf"><span style="font-size: 16px;">For identifying long-term market trends, the simple moving average is generally smoother and may provide a more stable reference.</span></div><div class="ace-line ace-line old-record-id-RUJbdyeAkoVwcUxZnHKubq19svb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RpV9dEtPioMSSJx4PduuoGpLsKd"><span style="font-size: 16px;">Traders who want the indicator to respond more quickly to price changes may prefer the exponential moving average. Neither is universally better, and the choice depends on the trader's trading style.</span></div><div class="ace-line ace-line old-record-id-YM39d2kghoC7HzxaAAVuIDpisVe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-U8vJddZlDolqqexky7muti69s2d"><span style="font-size: 16px;">5.4 Is the 20-period or 50-period moving average better?</span></h3><div class="ace-line ace-line old-record-id-ScOhdvCU6ord30xhDdRu9sZJsLl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-REyXduJiQooNg4xLufyucJu0s2e"><span style="font-size: 16px;">The 20-period moving average is more suitable for capturing short-term momentum. It responds quickly but may produce more market noise.</span></div><div class="ace-line ace-line old-record-id-CRrXd44A6okyGjxfymJuHFq1sLc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SbQRdJmiDojAUbxZ8NbuCTkNs5g"><span style="font-size: 16px;">The 50-period moving average is more suitable for identifying medium-term trends and generally provides more stable signals. Short-term traders may focus more on the 20-period moving average, while swing traders may prefer the 50-period moving average.</span></div><div class="ace-line ace-line old-record-id-Ut77dWtIRocNAFx4zmiuTpgpsme"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-CHu5dkWI7oTuTXxHInHulsnys3d"><span style="font-size: 16px;">5.5 What is the best moving average setup for day trading?</span></h3><div class="ace-line ace-line old-record-id-ND5tdeOtmomoPDxZFwyuXuq4sjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TyeddjrcToEiw7x4228uHXLGsAc"><span style="font-size: 16px;">A common approach is to use a combination of the 9-period and 21-period exponential moving averages on shorter-term charts.</span></div><div class="ace-line ace-line old-record-id-BFOydfyLzoKtpZxFdYwu8L1FsOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PjYDdc0TQosBUExg5Q4uAEZRsqb"><span style="font-size: 16px;">Using a 10-minute or 15-minute chart may help reduce the false signals that occur on extremely short timeframes.</span></div><div class="ace-line ace-line old-record-id-NcM9doQzjoLqcOxnwLGuqbv7sQ9"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-FKp2dERzzo7gBZx9ZpNupPoIsRy"><span style="font-size: 16px;">5.6 What is the moving average formula?</span></h3><div class="ace-line ace-line old-record-id-F7KedPAFLo5jySx7tE8upCidsbe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KzR3dn7fZoPZunxk6gDuDBGHsRg"><span style="font-size: 16px;">A simple moving average is calculated by adding the closing prices over a specified period and dividing the total by the number of periods.</span></div><div class="ace-line ace-line old-record-id-Fsf7dnWQUoEs5ZxafD9u062zsfd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RUZedMZgHo4p3Dxo7G9uzr6ysLf"><span style="font-size: 16px;">For example, a 10-day moving average equals the sum of the closing prices from the most recent 10 trading days divided by 10. An exponential moving average uses a similar calculation but assigns greater weight to more recent data.</span></div><div class="ace-line ace-line old-record-id-Nj9qdkNCwoSBFfxDmmtu23Upsqg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KzZGdPUQKoKlQjx6EvIuEUjqs9e"><span style="font-size: 16px;">Moving averages are an essential technical analysis tool because they are simple, intuitive, and practical. By mastering their four main uses—trend identification, dynamic support and resistance, crossover signals, and trailing stops—and selecting suitable parameters based on their trading timeframe, traders can improve the quality of their trading decisions.</span></div><div class="ace-line ace-line old-record-id-CbCOdOk0voBzHSxxK1guIM6msmg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-YSKudgWAvoIP5ixRxqqujn1vsSR"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-XEGwdtPQZoscP9x0B0uuHn5LsAh" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">How to Use the Exponential Moving Average Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-G9IEdrBCmoI101xL1ssuldTQs0a" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">How to Use Bollinger Bands in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-DL8edziQiorPHJxbg7jutSH0s9f" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-GtDDdzfUhoYjgVxJshKuY30CsEb" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-EqhFdFDtxo14LwxsuSQuxfIqsCe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HUdwdT28PoTYxVxaupnu7grQsTf"><span style="font-size: 16px;"><span style=""><strong style="">Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></span></div></div>

How to Use the Exponential Moving Average Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="KLBCdA3Y5oa20bxazOBu5vu1snf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-KFDZdS1C5oMI8IxdOuIunYBrsgc"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-LenRdfRdQolM9Jx8cbnukKuOsqf" data-list="bullet"><div><span style="font-size: 16px;">The exponential moving average is a trend-following technical indicator that assigns greater weight to recent prices, allowing it to respond more quickly to recent market changes.</span></div></li><li class="ace-line ace-line old-record-id-JL69dVbwToQOjSx9RJMuTsKBsWb" data-list="bullet"><div><span style="font-size: 16px;">By smoothing price fluctuations, the exponential moving average helps traders identify trend direction and potential buying or selling opportunities.</span></div></li><li class="ace-line ace-line old-record-id-B39xd9jscodscJxLBE9u2FZusRh" data-list="bullet"><div><span style="font-size: 16px;">The main difference between the exponential moving average and the simple moving average lies in how price data is weighted. The exponential moving average is more sensitive to recent price changes.</span></div></li><li class="ace-line ace-line old-record-id-YY5QdF45qo4grSx0CHquAUh6sqe" data-list="bullet"><div><span style="font-size: 16px;">Common uses include identifying trends, finding dynamic support and resistance, and monitoring golden cross and death cross signals.</span></div></li><li class="ace-line ace-line old-record-id-E33VdbWSuoUELtxVWIgu5ovRs1f" data-list="bullet"><div><span style="font-size: 16px;">Users can add the exponential moving average indicator to candlestick charts on MEXC and combine it with other tools to develop trading strategies.</span></div></li></ul><div class="ace-line ace-line old-record-id-C3MLdhoBoo9o6cxkNnRuRlYispc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-I78Udk77XoK4V9xWxxHu2FfzsHe"><strong>1. What Is an Exponential Moving Average?</strong></h2><div class="ace-line ace-line old-record-id-BPfbdMOeSoKfy7x8beeubz3SsXe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A2ELdVnYuohL1exhlbvueg7ssTf"><span style="font-size: 16px;">The <a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/exponential-moving-average-ema-30295">exponential moving average</a> (EMA) is one of the most commonly used technical analysis indicators in both cryptocurrency and traditional financial markets. It helps identify market trends by calculating the weighted average price over a specified period. Its main characteristic is that more recent price data receives greater weight, while the influence of older data decreases exponentially.</span></div><div class="ace-line ace-line old-record-id-Rv83dpEGLop6ZIxkCJGukVCss0P"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JaqWd0ecooMPvaxW1lluCKSZs3b"><span style="font-size: 16px;">This design is based on the assumption that recent prices reflect current market sentiment and supply and demand conditions more accurately than older prices. Compared with a simple moving average (SMA), the EMA can capture recent price movements more quickly, making it particularly suitable for highly volatile and fast-moving cryptocurrency markets.</span></div><div class="ace-line ace-line old-record-id-XIpNdCLSjok8uBxw51fuIZ18sHh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CRNfdT97Nodah6xG5UZu8tCds7W"><span style="font-size: 16px;">On <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> market charts, users can add EMAs with different periods to any trading pair, such as the 20-day, 50-day, 100-day, or 200-day EMA, to observe short-term momentum and long-term trends.</span></div><div class="ace-line ace-line old-record-id-QYoWdvkvxosP4IxzVa7uHcVNsbb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;95860379-289f-438d-8e53-eb4ec4622c26&quot;,&quot;height&quot;:641,&quot;width&quot;:1280,&quot;currHeight&quot;:641,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:641,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FEueFbLdXhoAo4QxQcAJuL03Ks7b%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;EueFbLdXhoAo4QxQcAJuL03Ks7b&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:246270,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-G9nAdFWgDoiS7vxbLVNubxSXsKf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174623414UKE8uQ1ei0ilm8.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJFdWVGYkxkWGhvQW80UXhRY0FKdUwwM0tzN2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRzluQWRGV2dEb2lTN3Z4YkxWTnVieFNYc0tmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9FdWVGYkxkWGhvQW80UXhRY0FKdUwwM0tzN2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/EueFbLdXhoAo4QxQcAJuL03Ks7b/?mount_node_token=G9nAdFWgDoiS7vxbLVNubxSXsKf&amp;mount_point=docx_image" data-width="1280" data-height="641" data-lark-image-uri="drivetoken://EueFbLdXhoAo4QxQcAJuL03Ks7b" data-lark-image-width="1280" data-lark-image-height="641" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-WCSGd5sako0XN3xCVQ5u0Qxpsyd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-B4KrdU61PoEOWAxlsFhuJXINsNe"><strong>2. Exponential Moving Average Formula</strong></h2><div class="ace-line ace-line old-record-id-XO9adq1Z3oPWmXxJqtmuOGMrs18"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XOsNdN9Tbokk9dxF2tVu8U0Hsqb"><span style="font-size: 16px;">The exponential moving average is calculated in three steps:</span></div><div class="ace-line ace-line old-record-id-BbE2dDyQUonREJx284RurdJ7sgc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XkkSdE73zoSCysxNXQNu4jjtsmh"><strong style="font-size: 16px;">Step 1: Calculate the initial value</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-BxL1doc5mowBAdxR88Wu9nt6ste"><span style="font-size: 16px;"> First, calculate the simple moving average for the selected period as the starting value. For example, for a 20-day period, add the closing prices from the previous 20 days and divide the total by 20.</span></div><div class="ace-line ace-line old-record-id-J1WLdDQIGoqO1dxp30puagVCsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YuXhdokKdoFjWqxQV8ZuCOrCsgb"><strong style="font-size: 16px;">Step 2: Calculate the smoothing factor</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-N7U1dIiMSod8hAxC6uAuA5INs7e"><span style="font-size: 16px;"> Smoothing factor = 2 / (Number of periods + 1)</span></div><div class="ace-line ace-line old-record-id-N9mCdEfhxoYXXGxwTnCuZAKNsLf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ljr1dTJQIoKEwFxscyeuo3KLsx9"><span style="font-size: 16px;">For a 20-day period, the smoothing factor is approximately 0.095.</span></div><div class="ace-line ace-line old-record-id-X82fdHUlJovHHax2V1cuBBNXsGc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QNeTd2WiFonIlvxg75SueynLseh"><strong style="font-size: 16px;">Step 3: Calculate the current EMA</strong></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-KDpQdyk9ZoPn0bxOiRouWf3Ssxg"><span style="font-size: 16px;"> Current EMA = (Current closing price - Previous EMA) × Smoothing factor + Previous EMA</span></div><div class="ace-line ace-line old-record-id-EEyDd7I6voaHymxJNs0uj2plsRg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PTXqdmB5ZoToRzxYFkruJrimsYe"><span style="font-size: 16px;">As shown in the formula, the EMA uses recursive calculation. Each new value is based on the previous day's EMA, preserving historical trend information while giving greater influence to the latest price.</span></div><div class="ace-line ace-line old-record-id-Pvd4dzH5HoIZzLx8jPhuNwU7sUt"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C1ibdzwdgos3JyxwmZau8BBqsRb"><span style="font-size: 16px;">The shorter the period, the larger the smoothing factor and the faster the EMA responds to price changes.</span></div><div class="ace-line ace-line old-record-id-ZqHhd1tsBop3rzxFNDIu1m3Mskd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-BnnHd3GvjoRhp2xZg4luGY3dsff"><strong>3. Differences Between EMA and SMA</strong></h2><div class="ace-line ace-line old-record-id-ZG9RdWiB4oARAux3t6Eu3Sjjscf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OasHdWapuoLCfOxd7OFufxfYsef"><span style="font-size: 16px;">A simple moving average assigns equal weight to every price within the selected period, while an exponential moving average gives greater weight to more recent prices.</span></div><div class="ace-line ace-line old-record-id-KUUsd1jyroEfEMxOEb1u0Sj8sNe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Zblbd5n41on2iaxUolruzqdnsGh"><span style="font-size: 16px;">The main differences are as follows:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-ProgdALKwo0D7UxtV36ug1fYsXc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Sensitivity:</strong> The EMA reacts more quickly to recent price changes and has less lag, while the SMA responds more slowly and produces a smoother curve.</span></div></li><li class="ace-line ace-line old-record-id-JMlddgQygoh9uZxstPDuUkDfs2f" data-list="bullet"><div><span style="font-size: 16px;"><strong>Suitable market conditions:</strong> The EMA is more suitable for short-term trading and highly volatile markets, while the SMA is more suitable for observing long-term and relatively stable trends.</span></div></li><li class="ace-line ace-line old-record-id-VA1XdYn5KonGjfxaLrauVBTGsAf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Signal quality:</strong> EMA signals appear earlier but are also more likely to produce false signals. SMA signals appear later but are generally more stable.</span></div></li></ul><div class="ace-line ace-line old-record-id-MSAkdOrtMoy2ZExvkXyuCP88sVe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WEIzdQJdpo8pG9xho6uu93UJsif"><span style="font-size: 16px;">Neither indicator is universally better. In actual trading, many traders monitor both the EMA and SMA to gain a more comprehensive view of the market.</span></div><div class="ace-line ace-line old-record-id-BVU3dAlzgo3uDcxdpOJu9OAcs4d"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-ONGmdg5uFoaCsYxCkYNuTrN8s3f"><strong>4. How to Use the Exponential Moving Average Indicator in Trading</strong></h2><div class="ace-line ace-line old-record-id-RFDidXwORoD16vxEEKMu209EsBf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HEDndCOlhoV6V7xVNYIuhI5Jsue"><span style="font-size: 16px;">4.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-OaEpded8eo6u1LxqlsduYB3Osag"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XO4Vd07opowA4QxPZjKuzqOzsvg"><span style="font-size: 16px;">This is the most basic use of the EMA.</span></div><div class="ace-line ace-line old-record-id-LmBCd2mzmoxXG5x7tJHu9OPksMg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-W9widCaBSoXzDExG2hBug1b8saf"><span style="font-size: 16px;">When the price is above the EMA and the EMA is sloping upward, the market is generally considered to be in an uptrend, and traders may look for buying opportunities.</span></div><div class="ace-line ace-line old-record-id-Y8UEd0TWio3zAsxPIK4uaDNUsPF"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Fy2Gd7SJZoqHSSxmHsPu4b4Asig"><span style="font-size: 16px;">When the price is below the EMA and the EMA is sloping downward, the market is generally considered to be in a downtrend. Traders should be cautious about buying at higher prices or may consider exiting their positions.</span></div><div class="ace-line ace-line old-record-id-Xinld8WcjoR05mxpP1UuvRdUsKO"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HcMFdUZJfordPxxBbFGuAL2fsub"><span style="font-size: 16px;">4.2 Use the EMA as dynamic support and resistance</span></h3><div class="ace-line ace-line old-record-id-VgGed3C9doPjv4xDnoluOVGNsvc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PY25dea7woeY5ixEVg2uB2tls4b"><span style="font-size: 16px;">During an uptrend, a rising EMA often acts as a dynamic price floor. When the price pulls back toward the EMA, it may find support, providing a common reference point for potential buying opportunity.</span></div><div class="ace-line ace-line old-record-id-BrrhdF0NgoTlDQx8gacucVKbsWx"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RoEcdmS6Bo1NbkxSbt0unDtQsiV"><span style="font-size: 16px;">During a downtrend, a declining EMA may act as a dynamic ceiling. When the price rebounds toward the EMA, it may encounter resistance.</span></div><div class="ace-line ace-line old-record-id-R5osdvZYdozA4Ux4QVeuOtKBsIe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OkH6dOlbEoO7c1xJdBEu4uh1sDg"><span style="font-size: 16px;">4.3 Dual EMA crossover strategy: Golden cross and death cross</span></h3><div class="ace-line ace-line old-record-id-ONaldD0AcoYt2qx4ItGu3rohs2v"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VO5vdEWcyoNQcVxUYBRuczc8srb"><span style="font-size: 16px;">Combining two EMAs with different periods is a classic trading strategy:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-AZc2dBNx5oTeWDx4HaBunMaXsuc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Golden cross:</strong> A short-term EMA, such as the 20-day EMA, crosses above a longer-term EMA, such as the 50-day or 200-day EMA. This is considered a bullish signal and may indicate the beginning of an uptrend.</span></div></li><li class="ace-line ace-line old-record-id-ZXbsdSfX9o24bmxBsfKuNDY8s8c" data-list="bullet"><div><span style="font-size: 16px;"><strong>Death cross:</strong> A short-term EMA crosses below a longer-term EMA. This is considered a bearish signal and may indicate the beginning of a downtrend.</span></div></li></ul><div class="ace-line ace-line old-record-id-KzkedSwyloleD8xALCqucfszsfb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EO8gdTiQqoXySqxQbFSuf8UksxA"><span style="font-size: 16px;">The crossover between the 50-day and 200-day EMAs is commonly used as an important reference for identifying medium- to long-term shifts between bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-OUUndBuvto5Uwox9tdTuwP4Dsd0"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YLaed3k9kobIIlxqGQwuZEZDsTd"><strong>5. How to Set Up the Exponential Moving Average on MEXC</strong></h2><div class="ace-line ace-line old-record-id-NOrJd02XLohQxIx9Rmqu6N50sSb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OWBYdbITDo3d9XxwSmJuMOZdsfc"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website</a> → Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> → Indicators → EMA</span></div><div class="ace-line ace-line old-record-id-S6eXdYl85o2CoWxPPpfuFxY3sRe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Xk3rd05Dno9gJwxTvvUuHFR4sSb"><span style="font-size: 16px;">Users can display multiple EMAs with different periods at the same time and combine them with other tools, such as the Relative Strength Index and Bollinger Bands, for more comprehensive analysis.</span></div><div class="ace-line ace-line old-record-id-QARXdLWHSoPOTXxr7fjuZ5iNs3g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-H1MrdAfpdoKglqxUtN6uHq1dsZC"><span style="font-size: 16px;">Beginners are advised to start with small amounts and gradually become familiar with how the indicator performs under real market conditions.</span></div><div class="ace-line ace-line old-record-id-EqILdEWfvoOr1QxQ1VquERXNsFf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LLrZda2HKojDQKxvnIyuoiyWsag"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-XLTOd7nirohYdUxGj6MufFyQsJc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;d98fb595-ae45-49af-9967-6b65387feba7&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FG0BzbOPmZoxlG5xAxBhudNlGsCb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;G0BzbOPmZoxlG5xAxBhudNlGsCb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:281242,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-S49EdamBLoYGYqx6Fm0uiRarsHh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174623140OSGjTZNXSlW922.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJHMEJ6Yk9QbVpveGxHNXhBeEJodWRObEdzQ2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiUzQ5RWRhbUJMb1lHWXF4NkZtMHVpUmFyc0hoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9HMEJ6Yk9QbVpveGxHNXhBeEJodWRObEdzQ2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/G0BzbOPmZoxlG5xAxBhudNlGsCb/?mount_node_token=S49EdamBLoYGYqx6Fm0uiRarsHh&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://G0BzbOPmZoxlG5xAxBhudNlGsCb" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-SMdCdfAAGoSrXHxUoFsuRZb8srf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-VT8xdwZHdonw1nxJGRJuA5Rysmb"><strong>6. Limitations of the Exponential Moving Average</strong></h2><div class="ace-line ace-line old-record-id-E3SPd0JfCovLhMxBE2YuyFPAsAT"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZGe2dk5ZBobfdSxLTdTuqTo6sEf"><span style="font-size: 16px;">Although the EMA is highly practical, it also has several limitations:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-WskRdv1JHobcsrxFDwFuRYYjsDK" data-list="bullet"><div><span style="font-size: 16px;"><strong>Based on historical data:</strong> The EMA only reflects price movements that have already occurred and cannot predict future prices.</span></div></li><li class="ace-line ace-line old-record-id-CqzzdUlEvoIHvIxKd8ZuRqEtsmh" data-list="bullet"><div><span style="font-size: 16px;"><strong>Recency bias</strong><strong>:</strong> Because it places greater emphasis on recent data, it may produce misleading signals when the market is extremely overbought or oversold.</span></div></li><li class="ace-line ace-line old-record-id-G9ladRkduoxVbrxo8aUurvH3sAd" data-list="bullet"><div><span style="font-size: 16px;"><strong>False signals:</strong> In sideways markets, frequent price movements above and below the EMA may create false trading signals.</span></div></li></ul><div class="ace-line ace-line old-record-id-UdpOdBWZDozNeHxyN4ouJr4Cs2e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EVafdqkMZoOsDwx3M2ouM8lcsFk"><span style="font-size: 16px;">The EMA should therefore be used together with other technical indicators, fundamental analysis, and strict risk management. Traders should not rely on any single indicator when making trading decisions.</span></div><div class="ace-line ace-line old-record-id-SMd9dDH4ko4jgyxb7FBu7DSEsJh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-ZT1ZddILQogTw5xrlXzunfuys9m"><strong>7. Exponential Moving Average FAQ</strong></h2><div class="ace-line ace-line old-record-id-DiURdgGxGoT6ogxycwxunqXqs5e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IvAad4RDVoyWryxSTBfukj8csRe"><span style="font-size: 16px;">7.1 How do I use an exponential moving average?</span></h3><div class="ace-line ace-line old-record-id-EjTqdPbn0oeRitxvegtuc0aesqb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Lg9sdt1gIoPSNaxOu1tuspiTsHe"><span style="font-size: 16px;">Observe the relationship between the price and the EMA to identify the trend.</span></div><div class="ace-line ace-line old-record-id-EF3odncPoobj6UxJKSSuKOrIsse"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A9SIdcn5go6fv5xaIljucfbTsvE"><span style="font-size: 16px;">When the price is above the EMA and the EMA is rising, the market is generally in a bullish trend. When the price is below the EMA and the EMA is declining, the market is generally in a bearish trend.</span></div><div class="ace-line ace-line old-record-id-H6DvdyG94oY8I5xO9VLuSQgNsAb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SoXzdUtwfo8hMGx4T0buGogPs0c"><span style="font-size: 16px;">The EMA can also be used as dynamic support or resistance to help determine potential entry and exit points.</span></div><div class="ace-line ace-line old-record-id-OtYedDjCWoeCdIxVPcDurP52sHh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-USwKd06B4oXvsIxJZ44u4VkysUe"><span style="font-size: 16px;">7.2 How do I use the 50-day and 200-day EMAs?</span></h3><div class="ace-line ace-line old-record-id-XTI1dEuW1o4jvDxRxGXuWYw6sJb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RQOQd5i6qoqItkx3btRumQyDsLc"><span style="font-size: 16px;">The 50-day EMA represents the medium-term trend, while the 200-day EMA represents the long-term trend.</span></div><div class="ace-line ace-line old-record-id-JTHAdefKJo5WEPxAvOjup5josIe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FJj2duoD0owmXRxsuYLuS1sUsnM"><span style="font-size: 16px;">When the 50-day EMA crosses above the 200-day EMA, it forms a golden cross and is considered a bullish signal. When it crosses below the 200-day EMA, it forms a death cross and is considered a bearish signal.</span></div><div class="ace-line ace-line old-record-id-WfhSdQqiFoplVJxGT6vuZxFfsqc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MsnddSH1koAUJ5xl46MumKoUsWh"><span style="font-size: 16px;">These crossovers are commonly used to identify changes between bullish and bearish market conditions.</span></div><div class="ace-line ace-line old-record-id-TfxXdfkz4oO3RUxhOeduDPGFsgr"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Wvb9d9KbwoN0pJxAPJruK9Lws4e"><span style="font-size: 16px;">7.3 How is the exponential moving average calculated?</span></h3><div class="ace-line ace-line old-record-id-P7Urd9DflofjgDx5eeouvBr7sZe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Agihdf3N1oJrc7xgsNhuP5lhsVd"><span style="font-size: 16px;">Current EMA = (Current closing price - Previous EMA) × Smoothing factor + Previous EMA</span></div><div class="ace-line ace-line old-record-id-JcNodgd20oVfcTxYDImuHFMVsDd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-AGwQdWZyOoQq1ix9SCZuxw7qsfc"><span style="font-size: 16px;">Smoothing factor = 2 / (Number of periods + 1)</span></div><div class="ace-line ace-line old-record-id-JkMqd8iAZoFU0xxoaZNuucX1sAf"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HdRdd9dRpolPDyxwsziuS8FMslc"><span style="font-size: 16px;">7.4 What is the difference between an EMA and an SMA?</span></h3><div class="ace-line ace-line old-record-id-Mv05dNDdaoy4nNxJ73SuTlCWswb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-P3GXdZXCpoDGuwxXalfu82Tzs5b"><span style="font-size: 16px;">An EMA assigns greater weight to recent prices, responds more quickly, and has less lag.</span></div><div class="ace-line ace-line old-record-id-BD4OduxUPotLdOx5QlEu7M1gsSV"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B2oPdrsDfoibPbxkS0mu9TFqstf"><span style="font-size: 16px;">An SMA gives equal weight to all prices within the selected period, producing a smoother curve but responding more slowly to price changes.</span></div><div class="ace-line ace-line old-record-id-V6yOdWcakoF7Czx4YCKusVwOs6b"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Urd5dNW4dovHqSxtMXfuwlCisyb"><span style="font-size: 16px;">7.5 What is the 9-day EMA in trading?</span></h3><div class="ace-line ace-line old-record-id-Tb2adLvCEo9SoqxkijTu6cRMsyb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UtwEdf66BoeUpPxkcGPuac2esSb"><span style="font-size: 16px;">The 9-day EMA is a fast-moving average commonly used by short-term traders to capture short-term price momentum.</span></div><div class="ace-line ace-line old-record-id-JrPodVFsvoSwqcxNM64u37u4sjb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X6hQdxYDAoo7UuxKPBOu0g9Cshb"><span style="font-size: 16px;">It is often combined with the 20-day or 21-day EMA to identify crossover signals.</span></div><div class="ace-line ace-line old-record-id-LA82d1P6Jo3bFxxDVQHuTi8ZsXe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DRfMd2emgo1WiTx7vCOu3jPTsbe"><span style="font-size: 16px;">7.6 How do professional traders use the EMA?</span></h3><div class="ace-line ace-line old-record-id-AH1od0F2aorNLSxgSBtupjgVs1g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WoQVdMARWoKcIMxLqgFueD5xsRd"><span style="font-size: 16px;">Professional traders usually combine multiple EMAs with different periods and use them together with trading volume, momentum indicators, and support and resistance analysis.</span></div><div class="ace-line ace-line old-record-id-XmTcdRcmxomOlMxIrcnuSNMtsjg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TtWZdgkzsokv3mxmSp7uLeyOsde"><span style="font-size: 16px;">They may also backtest their strategies using historical data and apply strict stop-loss settings to control risk.</span></div><div class="ace-line ace-line old-record-id-NAwidlQkQoBI4pxWVREuAnIlsgl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WMIodDkxXo07twx3xKWuSeyEsJf"><span style="font-size: 16px;">The exponential moving average is a practical trend indicator that balances responsiveness and stability. Whether it is used to identify market direction, locate support and resistance, or build golden cross and death cross strategies, it can provide valuable references for trading decisions.</span></div><div class="ace-line ace-line old-record-id-FA1kdn95IoYnFgx10IruAwCCsie"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-GqNVdkemQoieeOxkITBu7ADPsTd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-WB3JdTdBmocl9CxIf3zun8Uqs2f" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-BGKNdtuDCoL0NcxozYwukbARsmc" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">How to Use Bollinger Bands in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-NP16dwqkHoZKO4xELdNuGivfsUd" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-LcYpdJLy7ofqzzxbxsUuf8EMsde" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-SpjTdoEw9ou53GxSaeluZUyasXe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YaqWdXlZNoQAZ9xGeA5ufzFJsqd"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use Bollinger Bands in Trading: A Complete Beginner's Guide

<div data-page-id="RseVdQloyoLvanxvxluuy3GBs28" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-TNxodNnlPovlhGxzVc1uPqOrsec"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-NBWCdnXLeoOTLuxoDqRuXRe0sAI" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands are a volatility-based technical indicator developed by John Bollinger in the 1980s. They consist of a middle band, an upper band, and a lower band.</span></div></li><li class="ace-line ace-line old-record-id-ESqsdpBOroqFmyxYP9ou2GKosac" data-list="bullet"><div><span style="font-size: 16px;">The standard Bollinger Bands setting uses a 20-period simple moving average with upper and lower bands positioned two standard deviations away. These parameters can be adjusted according to different trading styles.</span></div></li><li class="ace-line ace-line old-record-id-I5MNdZaTLoprzfx5PDauutDMsZd" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands can help identify potential overbought and oversold conditions, volatility contractions known as squeezes, and potential shifts in trend momentum.</span></div></li><li class="ace-line ace-line old-record-id-AuuIdeR81oFqwExDg6ruKzbrsLe" data-list="bullet"><div><span style="font-size: 16px;">Bollinger Bands should not be used alone. Combining them with indicators such as RSI and MACD may improve signal accuracy.</span></div></li><li class="ace-line ace-line old-record-id-QEYtduHYUoah9WxMGUcuEuUdsxJ" data-list="bullet"><div><span style="font-size: 16px;">Users can add Bollinger Bands to candlestick charts on MEXC and use them together with appropriate risk management when trading.</span></div></li></ul><div class="ace-line ace-line old-record-id-DVp4d5NRFo6gJmxKuhRusPh3snq"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-BIffdPsVooWMJDxRJ1Xu4GUxsec"><strong>1. What Are Bollinger Bands?</strong></h2><div class="ace-line ace-line old-record-id-C49gdG4zLowLLQxC7UJu9Jk7sGc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BiZfdmNeqoPfAGxYB7TuC5etsAb"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/crypto-glossary/article/bollinger-bands-30297">Bollinger Bands</a> are a volatility-based technical analysis tool developed by John Bollinger in the 1980s to help traders evaluate price movements and market volatility. The indicator consists of three lines: a moving average in the middle, known as the middle band, and an upper band and lower band positioned a certain number of standard deviations above and below it.</span></div><div class="ace-line ace-line old-record-id-UdQXd8VrJo9z8qxDcOKunKSTs3b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GkkodL3GcoQCPexYKb3urLULslh"><span style="font-size: 16px;">The core principle of Bollinger Bands is to assess whether the current price is relatively high or low based on its position within the three bands. The distance between the bands also provides a visual indication of market volatility. Wider bands indicate increasing volatility, while narrower bands indicate decreasing volatility. Bollinger Bands are available as a built-in indicator on both Spot and Futures trading charts on MEXC.</span></div><div class="ace-line ace-line old-record-id-UmfKdoYLAo1Sl1xvCfBu0fy1sLf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;f2dffd63-5b63-496f-8fe2-2a03353f3bd9&quot;,&quot;height&quot;:643,&quot;width&quot;:1280,&quot;currHeight&quot;:643,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:643,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FMIahbRRLxozUKvxcwQquBI1RsYd%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;MIahbRRLxozUKvxcwQquBI1RsYd&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:256728,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-WWl1di8FzolKa7x9gvYufF35sbf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174922945eR5Ca8rLhwb8jO.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJNSWFoYlJSTHhvelVLdnhjd1FxdUJJMVJzWWQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiV1dsMWRpOEZ6b2xLYTd4OWd2WXVmRjM1c2JmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9NSWFoYlJSTHhvelVLdnhjd1FxdUJJMVJzWWQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/MIahbRRLxozUKvxcwQquBI1RsYd/?mount_node_token=WWl1di8FzolKa7x9gvYufF35sbf&amp;mount_point=docx_image" data-width="1280" data-height="643" data-lark-image-uri="drivetoken://MIahbRRLxozUKvxcwQquBI1RsYd" data-lark-image-width="1280" data-lark-image-height="643" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-RBntdXrCmoLlh8xYODFuFawXsXd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-X8XVdUgo5oEamRx9e4UuLDMjsWb"><strong>2. Components and Calculation of Bollinger Bands</strong></h2><div class="ace-line ace-line old-record-id-Fc1PdnLlyoOnhaxvTZGuDybWsuy"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-M8C9dN0PGoac0Yxok0tuomTUsSe"><span style="font-size: 16px;">Bollinger Bands consist of three components:</span></div><div class="ace-line ace-line old-record-id-Rp1QdBpc0oqzQuxsreruw7Easbd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RgS3dkCcAoiwLZxgW4NuIqKishc"><span style="font-size: 16px;"><strong>Middle band:</strong> Usually a 20-period simple moving average, calculated by adding the closing prices from the most recent 20 periods and dividing the total by 20. It serves as the baseline for price movements.</span></div><div class="ace-line ace-line old-record-id-QUBOd5jwXodXfvxs57wuTmSEsnh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HqJydaJHlo1LCBxnlXVugSXAsVf"><span style="font-size: 16px;"><strong>Upper band:</strong> The middle band plus two standard deviations, forming the upper volatility band.</span></div><div class="ace-line ace-line old-record-id-RBrsdm9XDoqJe9x6Hu8uxtcIsxe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UpBGdKfiWo1pKYxgYAHuZfJksog"><span style="font-size: 16px;"><strong>Lower band:</strong> The middle band minus two standard deviations, forming the lower volatility band.</span></div><div class="ace-line ace-line old-record-id-Lyy6dGaPFosdEdxaR40uFC5dsJg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NHffdK2n9obZOtxWR7Eur2tGsWd"><span style="font-size: 16px;">Because standard deviation automatically adjusts as price volatility changes, Bollinger Bands can adapt dynamically to different market conditions. This is their main advantage over fixed-channel indicators.</span></div><div class="ace-line ace-line old-record-id-Aib0dPnt5orZQXxdyE3uMKNysFd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-KSdIdBQg0oSZ8qxplbuu0YvGsbf"><strong>3. How to Trade With Bollinger Bands: Three Core Uses</strong></h2><div class="ace-line ace-line old-record-id-Y8B1djySiosc4vxpSZiuSbhLsoc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KjLkdHmpPo71TqxywzJuYadusKf"><span style="font-size: 16px;">3.1 Identify volatility squeezes and monitor breakouts</span></h3><div class="ace-line ace-line old-record-id-SAFXdpxCZotgqnxXcPFupMS8snd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jw1MdbUGQoGm0xx0wbbuh4ewsNs"><span style="font-size: 16px;">When the upper and lower bands narrow significantly and move closer together, this is known as a Bollinger Band squeeze. It indicates that market volatility is relatively low.</span></div><div class="ace-line ace-line old-record-id-GXasdHENPokTC6xnA31uqKXGs77"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-T2CWdNYzJoUgiVx3jxruKucfs0f"><span style="font-size: 16px;">Periods of unusually low volatility are often followed by renewed volatility. Traders may wait for the price to break out of the squeeze. A break above the upper band may provide a potential long entry, while a break below the lower band may provide a potential short entry.</span></div><div class="ace-line ace-line old-record-id-OFbTdPFgOoPbL1xrKtPuQdPBstf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DZNPdZ4qvoOmMlxT88wuc6nAsgf"><span style="font-size: 16px;">A stop-loss may be placed on the opposite side of the breakout pattern.</span></div><div class="ace-line ace-line old-record-id-D5C4d2y46oTeVoxsgYWuGFZ0scg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OJy6d1LN4oLeOfxvi7UuoUClsyh"><span style="font-size: 16px;">3.2 Identify overbought and oversold conditions</span></h3><div class="ace-line ace-line old-record-id-Oa59dF1CxoJZcjxdwjLuAo0Ystc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GmzidXVy3oWqwMxJ0x7uWLIDs6f"><span style="font-size: 16px;">When the price touches or moves above the upper band, it may indicate short-term overbought conditions. When the price touches or falls below the lower band, it may indicate short-term oversold conditions.</span></div><div class="ace-line ace-line old-record-id-BAN8dwnr8oshtsxvMscuY6las9f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TY0GdhfJWoMD41xhWhAuGFaMsZb"><span style="font-size: 16px;">In sideways markets, the price often moves between the upper and lower bands and returns toward the middle band. Traders may therefore look for potential buying opportunities near the lower band and selling opportunities near the upper band.</span></div><div class="ace-line ace-line old-record-id-Nw1ZdNX4UoSD1rx5Z9luZYglsDg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YmKLddCauozBYgxi1sNu2hnjsGd"><span style="font-size: 16px;">However, John Bollinger has emphasized that touching a band does not constitute a trading signal by itself. During a strong trend, the price may continue moving along the upper or lower band, a pattern commonly known as "walking the bands."</span></div><div class="ace-line ace-line old-record-id-NxtudtzD5oxCZmxItiiuzrT5s9g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-L57YdGWsMore84xrr1ius4rQs1e"><span style="font-size: 16px;">Trading against the trend under these conditions can carry significant risk. Traders should wait for additional confirmation signals before entering a position.</span></div><div class="ace-line ace-line old-record-id-HX9tdxHOVoMoHgx7chquBIqCsrc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-AHASdDg6Ko0YqxxAcXguak5Jssb"><span style="font-size: 16px;">3.3 Confirm trend direction and potential trend endings</span></h3><div class="ace-line ace-line old-record-id-KwFWdLlRqoGmEWxEaHIuKXmMsrh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GLsIdNNUeoCQP9xMPRlu2b71s7d"><span style="font-size: 16px;">During an uptrend, the price usually remains above the middle band, which may act as dynamic support. During a downtrend, the price generally remains below the middle band, which may act as dynamic resistance.</span></div><div class="ace-line ace-line old-record-id-AfR4dVAOroDzh2xw015uXAbosAc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F1eldOhZIov99IxjU7GuQKBbsKg"><span style="font-size: 16px;">At the beginning of a strong trend, the upper and lower bands often expand in opposite directions. When the band on the opposite side of the trend begins to turn and narrow again, it may indicate that the current trend is losing momentum or approaching an end.</span></div><div class="ace-line ace-line old-record-id-BqMcdYRAvoCCcoxXNfWuQZ47sQe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-PUjtdDctVo1JqOxsBWeuDRYOsHh"><strong>4. Indicators to Use With Bollinger Bands</strong></h2><div class="ace-line ace-line old-record-id-V5cMdwc0OoKLqWx93fiuGICUstb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XQaXdIsX5o8HeexeVseu6xtJsbh"><span style="font-size: 16px;">Bollinger Bands are based entirely on price data and may generate false signals when used alone. Traders may combine them with the following tools for confirmation:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-KKd8d6A7foriPNxVSv9u7opYsAc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Relative Strength Index (RSI):</strong> Helps confirm overbought and oversold conditions and filter out false reversal signals.</span></div></li><li class="ace-line ace-line old-record-id-AebqdbeSLoKy3qxZG1huxaozstc" data-list="bullet"><div><span style="font-size: 16px;"><strong>Moving Average Convergence Divergence (MACD):</strong> Tracks momentum changes and helps confirm trend direction.</span></div></li><li class="ace-line ace-line old-record-id-JnRBdq2LKo7XFfxZoLSu7bABsjg" data-list="bullet"><div><span style="font-size: 16px;"><strong>Volume indicators:</strong> Help verify whether a breakout is supported by sufficient trading activity. Breakouts with low volume are more likely to be false.</span></div></li></ul><div class="ace-line ace-line old-record-id-AOsGdZZE8o6N7VxllaTuU6Bes0e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-MAZ7d4x4coeh8SxiSuHuBs8dslb"><strong>5. Risk Management Tips for Using Bollinger Bands on MEXC</strong></h2><div class="ace-line ace-line old-record-id-DV5sdYomlo5KozxVOBGu5G03scf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ELOJdw4QjoU9yJxXX0JuufPhsph"><span style="font-size: 16px;">Regardless of the indicator used, risk management remains essential to trading. When using Bollinger Bands on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, traders should consider the following:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Q6iKdda4Oo1xplx0YV7uGhJUsRd" data-list="bullet"><div><span style="font-size: 16px;">Set stop-loss orders appropriately. A stop-loss for a long position may be placed below the lower band, while a stop-loss for a short position may be placed above the upper band.</span></div></li><li class="ace-line ace-line old-record-id-LFgRdyX2LocsanxBqBNuxb6SsFe" data-list="bullet"><div><span style="font-size: 16px;">Adjust position size according to the width of the bands. The greater the volatility, the smaller the position should generally be.</span></div></li><li class="ace-line ace-line old-record-id-AS63dkEu3oLuXDxqmKKue2b4sNU" data-list="bullet"><div><span style="font-size: 16px;">Avoid trading too frequently during periods of low volatility.</span></div></li><li class="ace-line ace-line old-record-id-ShucdPuzLoDcVUx10h1ubIiVssc" data-list="bullet"><div><span style="font-size: 16px;">Remember that technical analysis is based on historical data and cannot guarantee future results. No indicator can ensure profits.</span></div></li></ul><div class="ace-line ace-line old-record-id-Dj3CdlsZBox2tVxP2rBuyrKEsbd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FIlydgwI6oAB6hxzbE0ukss6sKe"><strong>6. Bollinger Bands FAQ</strong></h2><div class="ace-line ace-line old-record-id-K8DydTss2orFhixjWVUuU7pIsVb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OTCedCgEJoL5HjxgeCjusqsZsih"><span style="font-size: 16px;">6.1 How can I use Bollinger Bands effectively?</span></h3><div class="ace-line ace-line old-record-id-QuEVd26kQojFgnxm1VZuf3oWsAd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YzrTdcugZov1FMxaXaduR5ZSsKe"><span style="font-size: 16px;">Bollinger Bands can be used to identify volatility squeezes, overbought and oversold areas, and trend direction.</span></div><div class="ace-line ace-line old-record-id-Y877dy2UAohKt1xJM1pulyklsvd"><span style="font-size: 16px;">Signals should be confirmed with tools such as the Relative Strength Index. Traders should not enter a position solely because the price touches one of the bands.</span></div><div class="ace-line ace-line old-record-id-J1pQdRNJ4oDebHxXe9auaXdBsdc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-OXVOd9NwFoxPntxxGSnunIYdsKe"><span style="font-size: 16px;">6.2 What are the best Bollinger Bands settings?</span></h3><div class="ace-line ace-line old-record-id-Xlp5dwdIsobBCgxvnnIu3HA8soh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ELxcdCRfdoa43vxLmtdu0xSgshh"><span style="font-size: 16px;">The standard setting is a 20-period moving average with bands positioned two standard deviations away. This setting is suitable for most trading scenarios.</span></div><div class="ace-line ace-line old-record-id-UcXzdTrRFoiteExrGXguAxi8sAd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KULedlV7Zoh46RxyahvuDJKWsBh"><span style="font-size: 16px;">Short-term traders may use a 10-period setting with 1.5 standard deviations, while longer-term traders may use a 50-period setting with 2.5 standard deviations.</span></div><div class="ace-line ace-line old-record-id-RjXedhCLSoKJyOxW4pYuIpDvsOp"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-Xv35dx2dFo20MVxSzdwuSVHLsUe"><span style="font-size: 16px;">6.3 Which timeframes are suitable for Bollinger Bands?</span></h3><div class="ace-line ace-line old-record-id-GIQmdWAYmoe6UrxZS1Nusm5qssg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V8SmdmCUAoLpW8xXyWCuAOMXs2e"><span style="font-size: 16px;">Bollinger Bands can be used on any timeframe.</span></div><div class="ace-line ace-line old-record-id-StMXdWtLboldRyx68xuugmi2sqc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NtMPdQDD6opqzoxhrebuu2FUsOd"><span style="font-size: 16px;">Day traders commonly use charts ranging from five minutes to one hour, while swing traders often use four-hour and daily charts. Signals on longer timeframes are generally considered more reliable.</span></div><div class="ace-line ace-line old-record-id-MWird5q66oNbTAxKa1buJMSZsPo"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-LPDtdQflJoFVXjxjs1ruQfr0sfd"><span style="font-size: 16px;">6.4 Are Bollinger Bands a good indicator?</span></h3><div class="ace-line ace-line old-record-id-KT5adcomMoFb2sxpmy5uUZhSs5f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LjWYdSJVYoF421xve2Yuf1UmsPh"><span style="font-size: 16px;">Bollinger Bands are among the most widely used volatility indicators because they are intuitive and adapt to changing market conditions.</span></div><div class="ace-line ace-line old-record-id-GDaYdqafsovYysxBcO4u9IvxsNc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UJ1mdUI77o1mLtx2czZu22JYsyb"><span style="font-size: 16px;">However, they are not a complete trading system and should be used together with other indicators and appropriate risk management.</span></div><div class="ace-line ace-line old-record-id-Ar1GdIPT1oZngsxw0NquBgIEsYM"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-R4oLdiQvLoRQduxVxJQujVrhsCg"><span style="font-size: 16px;">6.5 What is a Bollinger Bands day trading strategy?</span></h3><div class="ace-line ace-line old-record-id-RkMKda9khozLTExIjJGuJDtBsTc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DoYPdWLFkoI6CmxkMyNu60DgsIb"><span style="font-size: 16px;">A common approach in a sideways market is to buy near the lower band and sell near the upper band.</span></div><div class="ace-line ace-line old-record-id-M3UEdWS3BoXstvxShjyuiMbvsPd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Q2pVdBwI5oH6n3xAhi0ucxMysic"><span style="font-size: 16px;">Another approach is to enter in the direction of a breakout after a Bollinger Band squeeze, using the middle band or the opposite band as a potential target.</span></div><div class="ace-line ace-line old-record-id-E6yfdN5bMocerCxQ2dCuO7XIsie"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-TXT6dpvJsoEdNDxBdTzuCLBwsjb"><span style="font-size: 16px;">6.6 What are the best indicators to use with Bollinger Bands?</span></h3><div class="ace-line ace-line old-record-id-FzP4dwPOAoiR1AxPBnXuKgOWsht"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EH8xd8u4VowY4VxJDYQuLSGSsCh"><span style="font-size: 16px;">The Relative Strength Index, Moving Average Convergence Divergence, and volume indicators are commonly used with Bollinger Bands to help filter out false signals.</span></div><div class="ace-line ace-line old-record-id-QZrddv8I2oQ8P7xZ6qNuypiCsHd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PHNtdFeQyoCwNCxio3quV0t1slc"><span style="font-size: 16px;">6.7 How do I set up Bollinger Bands on MEXC?</span></h3><div class="ace-line ace-line old-record-id-NGagdC6B3osILvx0gQ9uvlonsPc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-FIfndKuojoeGazxjejEuLRQfsCc"><span style="font-size: 16px;">Go to the MEXC Spot or <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> trading page, open the candlestick chart, and click Indicators. Search for and add Bollinger Bands, then customize the period and standard deviation settings as needed.</span></div><div class="ace-line ace-line old-record-id-IPzKdKbbVo0FE0x4QxHu8Rj7sYg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Mh3vdDKG5oZXoYxqvQ4uz9R3smf"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-Nr5zdHcOhotzrbxlHbUuJePKsTh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;94f8d154-a77b-4993-bd74-418e6160bcda&quot;,&quot;height&quot;:639,&quot;width&quot;:1280,&quot;currHeight&quot;:639,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:639,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJcCfbtu6Co6acGxLQv4ui1xJsmc%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;JcCfbtu6Co6acGxLQv4ui1xJsmc&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:275968,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-CdEbdnXiLoQL3IxxNAEuBD6PsCe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716174922592a69klOrv0Wsy9D.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKY0NmYnR1NkNvNmFjR3hMUXY0dWkxeEpzbWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQ2RFYmRuWGlMb1FMM0l4eE5BRXVCRDZQc0NlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KY0NmYnR1NkNvNmFjR3hMUXY0dWkxeEpzbWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/JcCfbtu6Co6acGxLQv4ui1xJsmc/?mount_node_token=CdEbdnXiLoQL3IxxNAEuBD6PsCe&amp;mount_point=docx_image" data-width="1280" data-height="639" data-lark-image-uri="drivetoken://JcCfbtu6Co6acGxLQv4ui1xJsmc" data-lark-image-width="1280" data-lark-image-height="639" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-Aqn4dycBfodpRExX12Ku9zLOsbe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-AQVydL7WcozXaCxfSPSumo4ysof"><span style="font-size: 16px;">Recommended Reading:</span></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-JDdAddWCoonEVhxij9fuRcS2sSb" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-Ma6xdDjRGo51ayxmF7YuPYxFsfe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-Un65dge7ZouatExVnBLuBO1ts4d" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256">How to Use the Parabolic SAR Indicator in Trading</a></span></div></li><li class="ace-line ace-line old-record-id-Pni9dAQIJogSmkxQQExuqe2ysbe" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-YXzhdKi5DoXES1xkoARuvajDsBg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B96Mde570oYnrNx6qzAuXSJxsVc"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use the Parabolic SAR Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="DcxDdlSbKovkIFxmWB3ucxcXsFh" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-PEB3ds1m8oPJsIxpEkSuFLe3shf"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-U2TkdYl5ko5tpcx3enOuSJ9hs2X" data-list="bullet"><div><span style="font-size: 16px;">The Parabolic SAR is a trend-following indicator developed by J. Welles Wilder. It uses dots above or below the price to indicate the direction of the market trend.</span></div></li><li class="ace-line ace-line old-record-id-TonRdi4YLogiCqxnh7cu6YW6sAb" data-list="bullet"><div><span style="font-size: 16px;">Dots below the price indicate an uptrend, while dots above the price indicate a downtrend. A change in the position of the dots may signal a potential trend reversal.</span></div></li><li class="ace-line ace-line old-record-id-DVNJd3Se0oSL2CxAZcouhocqsZO" data-list="bullet"><div><span style="font-size: 16px;">The main uses of the Parabolic SAR include identifying trends, setting trailing stops, and finding potential entry and exit points.</span></div></li><li class="ace-line ace-line old-record-id-Ow3Jdm6EGoTLOYxaoLzu52WdsIg" data-list="bullet"><div><span style="font-size: 16px;">The indicator may generate false signals in sideways markets, so it is recommended to use it with tools such as the Average Directional Index.</span></div></li></ul><div class="ace-line ace-line old-record-id-ZJIbdLWnIo1UNHxWM8euniTYsPd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FM3bdbmSxos92gxnff9uxEcqsLc"><strong>1. What Is the Parabolic SAR Indicator?</strong></h2><div class="ace-line ace-line old-record-id-YvdZdi7N5o20ETxQTfcuyXWtsvg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NP2EdPmADoAMJPxGuM1uN0YusFg"><span style="font-size: 16px;">The Parabolic Stop and Reverse indicator, commonly known as the Parabolic SAR, is a trend-following tool developed by renowned technical analyst J. Welles Wilder, who also created the Relative Strength Index. The indicator appears on a chart as a series of dots above or below the price. It is named after the parabolic shape formed by these dots.</span></div><div class="ace-line ace-line old-record-id-FT2GdracVoRwcDxy5aQuFhVIsae"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZfSJdih1domJxIxzmG8uZIpKste"><span style="font-size: 16px;">The indicator is relatively easy to interpret. When the dots appear below the price, the market is considered to be in an uptrend, and traders may prefer to hold long positions. When the dots appear above the price, the market is considered to be in a downtrend, and traders may prefer to hold short positions or stay on the sidelines. When the price crosses the dots and the dots move to the opposite side of the price, it may indicate a potential trend reversal.</span></div><div class="ace-line ace-line old-record-id-U5NXdHq1ZoBgsxxa6uiuHlaksOb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;86cf9b30-69b6-4ffa-aeb8-d206e0cdfb4d&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXUnSbxJniownmHxGEUKuCgQPsxb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;XUnSbxJniownmHxGEUKuCgQPsxb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:211610,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-H9eOdwNXhoy3hXxw1tAumUPcs4b"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175226393ys1U1zkgFkHpHo.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYVW5TYnhKbmlvd25tSHhHRVVLdUNnUVBzeGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiSDllT2R3Tlhob3kzaFh4dzF0QXVtVVBjczRiIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YVW5TYnhKbmlvd25tSHhHRVVLdUNnUVBzeGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XUnSbxJniownmHxGEUKuCgQPsxb/?mount_node_token=H9eOdwNXhoy3hXxw1tAumUPcs4b&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://XUnSbxJniownmHxGEUKuCgQPsxb" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-VPs7dbFZIo0yu8xOcZmukB5gszg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-IvoTdlWvrobZOLxTTk7uxjFPsrf"><strong>2. Parabolic SAR Formula</strong></h2><div class="ace-line ace-line old-record-id-VUIFd0BKxoKsalxxwbyu8aS9s6e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TO5wdbvszoN9lLxtzqausYY8sth"><span style="font-size: 16px;">The Parabolic SAR calculation is based on two key variables: the extreme point and the acceleration factor.</span></div><ul start="1" class="list-bullet1"><li style="white-space:pre;" class="ace-line ace-line old-record-id-SpGIdOQL0oMHqGxFiamuhVNdseh" data-list="bullet"><div><span style="font-size: 16px;"><strong>Uptrend formula:</strong> Current SAR = Previous SAR + Previous acceleration factor × (Previous extreme point - Previous SAR)</span></div></li><li style="white-space:pre;" class="ace-line ace-line old-record-id-WFcmdprBvoB3ZixiHbauf0QvsLf" data-list="bullet"><div><span style="font-size: 16px;"><strong>Downtrend formula:</strong> Current SAR = Previous SAR - Previous acceleration factor × (Previous SAR - Previous extreme point)</span></div></li></ul><div class="ace-line ace-line old-record-id-HCjbdyH19op1bWxykoguDex9sUg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LLIadPpXQodkRjxXAr3u0nSWsLd"><span style="font-size: 16px;">In an uptrend, the extreme point refers to the highest price. In a downtrend, it refers to the lowest price. The acceleration factor defaults to 0.02 and increases by 0.02 whenever a new extreme point is reached, up to a maximum of 0.20. As the trend continues, the indicator moves progressively closer to the price. Users do not need to calculate the indicator manually, as it can be loaded automatically on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC </a>market charts.</span></div><div class="ace-line ace-line old-record-id-NUR2dJIG4owMPwxpMKau6uKnsKb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-P7jidcuM6oHbZIxBorqunQJ8sPe"><strong>3. How to Use the Parabolic SAR Indicator in Trading</strong></h2><div class="ace-line ace-line old-record-id-EmszdcHbKoqR86xNH24uLqkgshc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-THAadds29orbT3xBNiYuVc88szd"><span style="font-size: 16px;">3.1 Identify the trend direction</span></h3><div class="ace-line ace-line old-record-id-LDb0dg5Vaoeo3Kxs2ABu2BhJspg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SM96dp1nLoXp1mxSwGgu8S7gskf"><span style="font-size: 16px;">This is the most basic function of the indicator. After opening a chart, traders can quickly identify whether the current trend is bullish or bearish by observing whether the dots are above or below the price. This can help traders avoid taking positions against the prevailing trend.</span></div><div class="ace-line ace-line old-record-id-HHifdnM3soMkIPxaglRu2gLHsBd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-WcamdiIFMogAdjxO9anuZoaxsag"><span style="font-size: 16px;">3.2 Set a trailing stop</span></h3><div class="ace-line ace-line old-record-id-EjVWd2wgVodThnxZjwbu85wdslg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C7B6dkbWpo0tUKxZxnkuBCkysAg"><span style="font-size: 16px;">The Parabolic SAR can also function as a dynamic trailing stop. During an uptrend, the dots move higher as the price rises. Traders may place a stop-loss at the latest dot, helping them lock in profits while the trend continues and exit when the trend breaks down.</span></div><div class="ace-line ace-line old-record-id-TCCxdPgweou0PRx5W3PuY22Asjg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-UjJAd0CLHoOTM1x0MgmuwrgisTd"><span style="font-size: 16px;">3.3 Identify reversal signals</span></h3><div class="ace-line ace-line old-record-id-I5ipdPcA0o8vwOxfs9jumKOEskd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YME5dHFGuoqADBxxgGWuqSbascC"><span style="font-size: 16px;">When the price falls below the dots during an uptrend, the dots move above the price, which may signal that traders should close long positions and consider opening short positions. When the price rises above the dots during a downtrend, the dots move below the price, which may signal that traders should close short positions and consider opening long positions. This is the core logic behind the stop-and-reverse system, allowing traders to continue following the market trend.</span></div><div class="ace-line ace-line old-record-id-JgxSd7oRAoUqy5xtuMouVYWhsee"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-O8y9dLBANoTKVrxdDgWumu0Psgd"><strong>4. How to Use the Parabolic SAR on MEXC</strong></h2><div class="ace-line ace-line old-record-id-J9cXd9Wo6oxCazxjwgVudfW5s9d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MthRdUwcHo8wkYxSLS3u7ARfsce"><span style="font-size: 16px;">Go to the MEXC Spot or <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures</a> trading page, open the candlestick chart, and click Indicators. Search for and add the Parabolic SAR indicator, then customize its parameters in the settings.</span></div><div class="ace-line ace-line old-record-id-MSm5dhQyHoeWsTxEBUeuqHaPsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LbtldVWeIo8hLbxmCkNuVXsssgg"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-IDWvd55CqohU4oxG3KcuDPrssIf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2cde168e-6ad6-4ae6-96fa-324d3aec00e3&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FBbgKblT0joA3K9x0EKXurGkCste%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;BbgKblT0joA3K9x0EKXurGkCste&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:253100,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-O60YdhOwToJh46xiYMSuX1AKsPe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175225979vWee7BeE2G0SmX.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJCYmdLYmxUMGpvQTNLOXgwRUtYdXJHa0NzdGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTzYwWWRoT3dUb0poNDZ4aVlNU3VYMUFLc1BlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9CYmdLYmxUMGpvQTNLOXgwRUtYdXJHa0NzdGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/BbgKblT0joA3K9x0EKXurGkCste/?mount_node_token=O60YdhOwToJh46xiYMSuX1AKsPe&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://BbgKblT0joA3K9x0EKXurGkCste" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-CJ6qdw1EdoKJmZx7DUouj3wasUf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-IraydN7KYoQ2YKxP31Bu4eDfsWg"><strong>5. Advantages, Limitations, and Tips for Using the Parabolic SAR</strong></h2><div class="ace-line ace-line old-record-id-HZtadlreRoD2A4xgdZHunyjdsze"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HfsgdVT4roAxZ2xh31RuUUhasBf"><span style="font-size: 16px;"><strong>Advantages:</strong> The signals are clear and easy to interpret, helping traders focus on the direction of the trend. The indicator automatically provides potential exit levels and can help manage risk. It performs particularly well in strong, trending markets.</span></div><div class="ace-line ace-line old-record-id-PC8dd8LU2od20sxXzuPuEZ6BsOf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NrYsdSTfvoKtk0xKDMLurjgqsHc"><span style="font-size: 16px;"><strong>Limitations:</strong> The Parabolic SAR is a lagging indicator, so its signals may be delayed. In sideways markets, the dots may frequently switch above and below the price, generating numerous false signals. Relying on the indicator alone may lead to repeated losses.</span></div><div class="ace-line ace-line old-record-id-Ho2Odp0kQopr5Tx4RStu8rsPs3b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-En0RdhEYpopW1WxlTNouHRcasad"><span style="font-size: 16px;">It is recommended to combine the Parabolic SAR with other indicators. For example, traders may use the Average Directional Index to confirm trend strength and only act on signals when the trend is strong. They may also use moving averages to filter the trend direction and trade only in line with the broader market trend. Any strategy should also be supported by sound position sizing and risk management.</span></div><div class="ace-line ace-line old-record-id-LjEDdV5n0o8s4oxmL08uXJeDsoc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-LeKldTU6FoYA6Px1GJjudAufs1b"><strong>6. Parabolic SAR FAQ</strong></h2><div class="ace-line ace-line old-record-id-JVE8dLYLOoJFl7xB3dRuE073scC"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-HIoBdGlGKoFBUwxJGutuzzmusWh"><span style="font-size: 16px;">6.1 What is the Parabolic SAR indicator?</span></h3><div class="ace-line ace-line old-record-id-QX3pdyyEhoSTzNxXSgou5LhksDg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JkhrdLqbUoKbtGxKujMuaI7gsFd"><span style="font-size: 16px;">The Parabolic SAR is a trend-following indicator that uses dots above or below the price to show the trend direction and potential reversal points. It can also be used as a trailing stop tool.</span></div><div class="ace-line ace-line old-record-id-HEKYdREjtomoxGxoqnquJX8Qskh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IiORdWF52off3IxeJoxuOm8msff"><span style="font-size: 16px;">6.2 How can I use the Parabolic SAR effectively?</span></h3><div class="ace-line ace-line old-record-id-CYWldrH4HoDfl1x0gBpu3lIXsqh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RoC9dIGLHoSzQIxKzxwu2KRMscq"><span style="font-size: 16px;">First, use the position of the dots to identify the trend direction and enter trades in line with the trend. The latest dot can be used as a reference when setting a stop-loss. When the dots move to the opposite side of the price, consider exiting the position or reversing direction. Other indicators should also be used to filter false signals in sideways markets.</span></div><div class="ace-line ace-line old-record-id-Op2udOTOhoWAqTxF5bau6eRLsWe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-AUCnd9ZhGo4Kn3x0hzbuzScmsVf"><span style="font-size: 16px;">6.3 What are the best Parabolic SAR settings?</span></h3><div class="ace-line ace-line old-record-id-Wm9TdG7S2oul6uxpkzduysQnszb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MBEldlJvuoylWnxhBvluPj11s4i"><span style="font-size: 16px;">The default acceleration factor is 0.02, with a maximum value of 0.20. These settings are suitable for most market conditions. Short-term traders may increase the acceleration factor, while longer-term traders may reduce it.</span></div><div class="ace-line ace-line old-record-id-K69WdmcV8oASupxYxP6uQQEusDc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-RsO3dFuLuojzq2xzqVEukOgAsMe"><span style="font-size: 16px;">6.4 Can the Parabolic SAR be used on 1-minute and 5-minute charts?</span></h3><div class="ace-line ace-line old-record-id-S20mdW8UDoewpwxIPy5uftBTskg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X72AdT80no45onxxR7nuvhVosTf"><span style="font-size: 16px;">Yes. The indicator can be used on all timeframes, and day traders commonly use it to 1-minute and 5-minute charts. However, shorter timeframes contain more market noise, so it is recommended to combine the indicator with a trend confirmation tool.</span></div><div class="ace-line ace-line old-record-id-ZsN7dr7Reoi6njxiJu4u3kMns1g"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ZJ5vd5Oglo26m8xrbJzuE3HysJh"><span style="font-size: 16px;">6.5 What are some common Parabolic SAR strategies?</span></h3><div class="ace-line ace-line old-record-id-NJqvdqtyhoZ3vTxyvKJuuEzDsqW"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VL3ZdfC2HosKtIx2AOSuK4izszf"><span style="font-size: 16px;">Common strategies include trend following strategies, dual-timeframe strategies that use a longer timeframe to determine direction and a shorter timeframe to identify entry points, and filtering strategies that combine the Parabolic SAR with the Average Directional Index.</span></div><div class="ace-line ace-line old-record-id-Lu95di4imo93SDx36L8uYt9XsHd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-XvuxdoeydoxEfExCb80u8YyBslg"><span style="font-size: 16px;">6.6 What is the 7% stop-loss rule?</span></h3><div class="ace-line ace-line old-record-id-CC2cdvbhIoItNqxKir0uC84Xsud"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IFegdbqrOoGiDQxAyUDu8IswsFh"><span style="font-size: 16px;">The 7% stop-loss rule is a fixed-percentage risk management method. It requires traders to exit a position when the loss reaches 7% of the purchase price. The Parabolic SAR, by comparison, provides a dynamic stop-loss level. The two approaches can also be combined.</span></div><div class="ace-line ace-line old-record-id-YkG4dtXgko8H0Fx8IueuE9NnsYc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-FiwddK0wmoDoABxQE21uUNCKsrc"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-RGGXdr9CaozwN2xtmLJuYZZvsqe" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-UCh8dJsuKoXaO5xsNQju80eYsXf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-Se4mdsLFVo8veBxxKsNuNr4Ls1f" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536" data-lark-is-custom="true" style="font-size: 16px;">How to Use Bollinger Bands in Trading</a></div></li><li class="ace-line ace-line old-record-id-NExYd0uqfoscexxRR65uHfyzsGf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-use-the-ichimoku-cloud-indicator-in-trading-416912217726086144">How to Use the Ichimoku Cloud Indicator in Trading</a></span></div></li></ul><div class="ace-line ace-line old-record-id-DN4MddWNGonhPcxTPbgu4IIKsTd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-G8oRdFd2QouN2UxmbmJulFICs9f"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Use the Ichimoku Cloud Indicator in Trading: A Complete Beginner's Guide

<div data-page-id="ZEQAdixMPofpV3xGpXeu1D9HsRd" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-Bquzdeyz0o2vHoxhPdtu7lFDsK1"><strong>Key Takeaways</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-VojidvwW0oS95kx1b1Gurlwxsac" data-list="bullet"><div><span style="font-size: 16px;">The Ichimoku Cloud is a comprehensive technical indicator that combines trend direction, support and resistance, and momentum analysis.</span></div></li><li class="ace-line ace-line old-record-id-DEG8dPx3roEz52xyJjFuY2wosKh" data-list="bullet"><div><span style="font-size: 16px;">The indicator consists of five lines: the Conversion Line, Base Line, Lagging Span, Leading Span A, and Leading Span B. The area between the two leading spans forms the cloud.</span></div></li><li class="ace-line ace-line old-record-id-JqMVdqjMboeRzGxKzBqu4VEAsVb" data-list="bullet"><div><span style="font-size: 16px;">Traders can assess market trends and identify potential buy and sell signals by observing the price's position relative to the cloud, changes in cloud color, and line crossovers.</span></div></li><li class="ace-line ace-line old-record-id-Xpo2dYh9joSouixILkUubZe4sId" data-list="bullet"><div><span style="font-size: 16px;">The Ichimoku Cloud can be enabled and customized directly on MEXC Spot and Futures trading charts to support everyday trading decisions.</span></div></li></ul><div class="ace-line ace-line old-record-id-OD8tdDuyMolRsExnmIxuLV46sIe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-UNwHdZ0wwofUgdxZxAfuOkXTsud"><strong>1. What Is the Ichimoku Cloud?</strong></h2><div class="ace-line ace-line old-record-id-TluudQcVnolyIHxj4okusNgvsrb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BxBid28slojt9hxk3BzuzkLqsLg"><span style="font-size: 16px;">The Ichimoku Cloud is a technical analysis method that combines multiple indicators into a single chart. Its name reflects the idea of understanding market conditions at a glance. The indicator was developed by Japanese journalist Goichi Hosoda in the 1930s. After years of research and refinement, it was publicly introduced in the 1960s and has since become a classic indicator widely used by traders around the world.</span></div><div class="ace-line ace-line old-record-id-TJP6dTC82oHWfpxBvIduSVzes9d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IKvhdALhrolbwcxkBYgurCyXsGe"><span style="font-size: 16px;">Unlike traditional moving averages, the Ichimoku Cloud can simultaneously display potential support and resistance levels, trend direction, and price momentum. This allows traders to assess the broader market picture on a single chart and identify potential entry and exit opportunities more efficiently. The Ichimoku Cloud is currently available on MEXC Spot and Futures trading charts and can be added directly to the candlestick chart.</span></div><div class="ace-line ace-line old-record-id-WztjdtfC8on2XwxiMzZuN0VjsLe"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;2ac874f0-f7cd-445d-926f-ae64e88e4ca4&quot;,&quot;height&quot;:642,&quot;width&quot;:1280,&quot;currHeight&quot;:642,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:642,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FInF7bowwEoTYBBxpfpVuUcLIsqo%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;InF7bowwEoTYBBxpfpVuUcLIsqo&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:300985,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-Xq82d6qQpoNsQwx5dMuuvtyTsgc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175540049ykGgTD0CTOUCsP.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJJbkY3Ym93d0VvVFlCQnhwZnBWdVVjTElzcW8iLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiWHE4MmQ2cVFwb05zUXd4NWRNdXV2dHlUc2djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JbkY3Ym93d0VvVFlCQnhwZnBWdVVjTElzcW8vP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/InF7bowwEoTYBBxpfpVuUcLIsqo/?mount_node_token=Xq82d6qQpoNsQwx5dMuuvtyTsgc&amp;mount_point=docx_image" data-width="1280" data-height="642" data-lark-image-uri="drivetoken://InF7bowwEoTYBBxpfpVuUcLIsqo" data-lark-image-width="1280" data-lark-image-height="642" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-A82TdQLe5oQJDdxzIYMu1cO7sPh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-N1mydapGMoLLaax9YsMu3E2ksSd"><strong>2. How Is the Ichimoku Cloud Calculated? Five Main Components Explained</strong></h2><div class="ace-line ace-line old-record-id-XW64dmE6aob0lJxK4IduXyQwsbc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MgZ6dEtQJooyAqx7H8ZuiHPqsSf"><span style="font-size: 16px;">Understanding the Ichimoku Cloud requires knowing how its five components are calculated and what they represent.</span></div><div class="ace-line ace-line old-record-id-NjvYd2RaKoU2PfxqUvyuYmwasfc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ABgTdT5xboWuEbx4JqjuPheNsdh"><span style="font-size: 16px;"><strong>Conversion Line:</strong> Based on nine periods and calculated as:</span></div><div class="ace-line ace-line old-record-id-VbrydEjzEoPBn5xx9Vau0NYmsxb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EzqVdtEtqoOfB3xuyCzuh0qZsYc"><span style="font-size: 16px;">(Highest high over the past nine periods + Lowest low over the past nine periods) / 2</span></div><div class="ace-line ace-line old-record-id-JJR7d9qRqocDFZxYZS4uc0vesob"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SOpidULN3oQtloxSWVZu1w8vsxc"><span style="font-size: 16px;">The Conversion Line responds most quickly to price movements and represents short-term price momentum.</span></div><div class="ace-line ace-line old-record-id-L1SpdZJvho86BRxiu49utl9isrc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C9tHdxy02oOTeqxBKNOuyNB6sVc"><span style="font-size: 16px;"><strong>Base Line:</strong> Based on 26 periods and calculated as:</span></div><div class="ace-line ace-line old-record-id-GfpjdfFwIoiH12xgSNZu5oZ3sce"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-A0gzdo9R3owff9xknbcusmzssMe"><span style="font-size: 16px;">(Highest high over the past 26 periods + Lowest low over the past 26 periods) / 2</span></div><div class="ace-line ace-line old-record-id-L1HWdjo0QofwiUxSAD7u7upRsJf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-P6hldu7UlozRwXxkIKluS5rbsvc"><span style="font-size: 16px;">The Base Line is smoother and represents the medium-term trend. It is also commonly used as a reference for dynamic support and resistance.</span></div><div class="ace-line ace-line old-record-id-A1Q6d9zDvo3TX4xrTTYufSDzsSd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Tqxxd0hnCoCexgx6xlKummUjshe"><span style="font-size: 16px;"><strong>Lagging Span:</strong> The current closing price plotted 26 periods back. It is used to compare the current price with historical prices and help confirm the trend.</span></div><div class="ace-line ace-line old-record-id-BwxodDm8Mo8MnFxAXntunBhLs3c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IHEpdf8kaoydqpxrRdHuuibqsUf"><span style="font-size: 16px;"><strong>Leading Span A:</strong> Calculated as:</span></div><div class="ace-line ace-line old-record-id-UMVZdZRAloqwVzxs1SkuW4x0suc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-F5DUdzoxZoIJXVxNOK3uvH5JsYg"><span style="font-size: 16px;">(Conversion Line + Base Line) / 2</span></div><div class="ace-line ace-line old-record-id-SGUGdfGQlovk9rxUdI5uHbq5sQb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TRxcdP4SuoSrbyxi0BquxCfFs0d"><span style="font-size: 16px;">The result is plotted 26 periods ahead and forms one boundary of the cloud.</span></div><div class="ace-line ace-line old-record-id-SEyzdzwkmoSeD9xs2CzuNlvosEg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OgQtdd65yockUwx6IStuQtjssAd"><span style="font-size: 16px;"><strong>Leading Span B:</strong> Calculated as:</span></div><div class="ace-line ace-line old-record-id-Ajt2d5J6so6An2xqbL8uanbgsBg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HGHxdT7muoYzIvxRPeXumdofshg"><span style="font-size: 16px;">(Highest high over the past 52 periods + Lowest low over the past 52 periods) / 2</span></div><div class="ace-line ace-line old-record-id-NAdDdrn6qoKO5XxjrIvu7hdzsde"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Ih7fdK5iXoKUCYxi7SOuO2nus0c"><span style="font-size: 16px;">The result is also plotted 26 periods ahead and forms the other boundary of the cloud.</span></div><div class="ace-line ace-line old-record-id-XH2UdsgyoohAbXx6f9zuPVMgshc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-SpDLdcVvQo6FYjxKvoQu6OXKsKR"><span style="font-size: 16px;"><strong>Cloud:</strong> The area between Leading Span A and Leading Span B. It is the central component of the indicator. Because the cloud is projected 26 periods into the future, it can help traders identify potential future support and resistance areas.</span></div><div class="ace-line ace-line old-record-id-HBREdV6V3oXqMaxESv1u7ns4sgg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FG8SdmpYMo4DHNx8ZDSubw9CsDg"><strong>3. How to Interpret the Ichimoku Cloud</strong></h2><div class="ace-line ace-line old-record-id-MQ71dfaiFox9OMxyVzOudawjste"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BtfAdKsKcoBWLtxOVssuNZjdsfe"><span style="font-size: 16px;">The Ichimoku Cloud can mainly be interpreted from three main ways.</span></div><div class="ace-line ace-line old-record-id-KHhed6KO7olGuGxUgcOurwxYsWe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BkL2dFZ9VoyylAx85fpuMFpJsrg"><span style="font-size: 16px;"><strong>First, observe the price's position relative to the cloud.</strong> When the market price is above the cloud, it produces a bullish signal and indicates an uptrend. When the price is below the cloud, it generally indicates bearish conditions and indicates a downtrend. When the price is moving inside the cloud, the market is generally considered to be ranging or consolidating. Traders should remain cautious and wait for a clear breakout signal.</span></div><div class="ace-line ace-line old-record-id-Iy2ndILjdoFMr1xA6auuPZ8As4G"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Bzrod8SSDoefPkx4uBGuEvlTs2d"><span style="font-size: 16px;"><strong>Second, observe the color of the cloud.</strong> When Leading Span A is above Leading Span B, a green cloud is formed, indicating bullish conditions. When Leading Span A is below Leading Span B, a red cloud is formed, indicating bearish conditions. A change from a red cloud to a green cloud is considered bullish, while a change from green to red is considered bearish.</span></div><div class="ace-line ace-line old-record-id-RyaqdpuGmonfQDx16vQuTpMRsAe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C1cRdQ4lAou3TfxjId8ulCzqsrb"><span style="font-size: 16px;"><strong>Third, observe the thickness of the cloud.</strong> A thicker cloud generally indicates stronger support or resistance, making price breakouts more difficult. A thinner cloud suggests weaker support or resistance, making it easier for the price to break through.</span></div><div class="ace-line ace-line old-record-id-V3NSdkIAookWCOxUE4FusJv0s07"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-DK5kdi9MJo2oEExwidZuPQRUsuh"><strong>4. Ichimoku Cloud Buy and Sell Signals</strong></h2><div class="ace-line ace-line old-record-id-KnXtdLafFo3JhgxEadLulD7ysac"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-DlAEdToSio6r0rxqt5OuUTNlsF7"><span style="font-size: 16px;">The Ichimoku Cloud can generate several clear trading signals. Beginners may focus on the following types.</span></div><div class="ace-line ace-line old-record-id-WvGgd1RJcoA42yxuhKju76G1ska"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-IlxEd50ncoFqQNxkpNauHIBEshb"><span style="font-size: 16px;"><strong>Conversion Line and Base Line Crossover Signals: </strong>During an uptrend, if the price is above the cloud and the Conversion Line crosses above the Base Line, it may provide a buy signal. During a downtrend, if the price is below the cloud and the Conversion Line crosses below the Base Line, it may provide a sell signal. These signals follow logic similar to golden crosses and death crosses between moving averages, but they may respond more quickly.</span></div><div class="ace-line ace-line old-record-id-RSwndrdzBogHCvxhsYhuKmemsFb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-EafTd9vmjomQeexwIxkuYujbscT"><span style="font-size: 16px;"><strong>Price and Base Line Crossover Signals: </strong>During an uptrend, when the price crosses above the Base Line while remaining above the cloud, it may provide a buy signal. During a downtrend, when the price crosses below the Base Line while remaining below the cloud, it may provide a sell signal.</span></div><div class="ace-line ace-line old-record-id-J5xBdAPfgoZuvPxMunMuLHKpsRd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ACuXduQcroG9rfxDDoFuBoR3sXc"><span style="font-size: 16px;"><strong>Cloud Breakout Signals:</strong> When the price breaks above the cloud from below and remains there, it may indicate that the trend is shifting from weak to strong. This is generally considered a relatively reliable medium- to long-term buy signal. When the price breaks below the cloud, it may indicate that the trend is weakening, and traders may consider exiting or opening a short position.</span></div><div class="ace-line ace-line old-record-id-FoT2dZogDoWwNKxCAbUuIHWksLf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OftLdRmfQofjfpxB9Sruld57suj"><span style="font-size: 16px;">Signals aligned with the broader trend are generally more reliable. When the price is above a green cloud, traders may prioritize buy signals. When the price is below a red cloud, they may prioritize sell signals. Countertrend signals are generally weaker and should be approached cautiously, especially by beginners.</span></div><div class="ace-line ace-line old-record-id-YxdydyoJ1ocJqUxvqqIuOhrJsSe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-TOdhdPQVzoc3uex0iLxuchI6sZc"><strong>5. Entry and Exit Strategy for Beginners Using the Ichimoku Cloud</strong></h2><div class="ace-line ace-line old-record-id-R4N8d8erpowvxvx6fE9uju8Ksoc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-OrpCd2fBkopYHbxX7e0uEGBqsPg"><span style="font-size: 16px;">Beginners may use the following as a simple entry and exit framework:</span></div><div class="ace-line ace-line old-record-id-IWVidB3CsolnetxrAPku9pavsYb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-K4v5daRYIoe3xhxOzWyubZcRs6g"><span style="font-size: 16px;">1. Use the cloud to determine the broader trend direction and only trade in the same direction as the trend.</span></div><div class="ace-line ace-line old-record-id-DDZCd67j3oFg10x0MkZu9sh5srd"><span style="font-size: 16px;">2. Wait for confirmation signals. For example, after the price breaks above the cloud, wait for the Conversion Line to cross above the Base Line while the Lagging Span is also above historical prices. Using multiple confirmation signals may improve reliability.</span></div><div class="ace-line ace-line old-record-id-Lh1bdcUEgohqHGx9Y4uuU0vPsGb"><span style="font-size: 16px;">3. After entering a position, place the stop-loss below the Base Line or outside the cloud boundary to control the risk of each trade.</span></div><div class="ace-line ace-line old-record-id-Ca6Zd4PC0oGbLExiEQTuKr1Vsjh"><span style="font-size: 16px;">4. If the Conversion Line crosses the Base Line in the opposite direction or the price moves back into the cloud, consider taking profits gradually or exiting the position.</span></div><div class="ace-line ace-line old-record-id-J3jldTPUcojLKuxEwHFudaeTsve"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PPB0dGlxEokdZnxrDoLuOR2WsZd"><span style="font-size: 16px;">Traders may also combine the Ichimoku Cloud with tools such as the Relative Strength Index and exponential moving averages to filter false signals in sideways markets and improve market analysis.</span></div><div class="ace-line ace-line old-record-id-GhBddVhuBoNn4pxn5udu7JFTsuh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-HjycdoWRMoDe6oxxUBKuFuMQsfb"><strong>6. How to Use the Ichimoku Cloud on MEXC</strong></h2><div class="ace-line ace-line old-record-id-RPThdDVvxoPUYLxI2JnueUrQsth"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-V6NEdledBoxQjbxKkyuu6vnEsy1"><span style="font-size: 16px;">Navigation: MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/">official website </a>→ Spot/<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures </a>→ Indicators → Ichimoku Cloud</span></div><div class="ace-line ace-line old-record-id-TVpLdfuwlotssbxFgaoupX1asOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-HQ8gdwcg2oIUm4xDiiUu2iQXs5f"><span style="font-size: 16px;">Once the indicator is enabled, the values for each component will be displayed above the candlestick chart based on the cursor position. Click the settings button to adjust the basic parameters, which are set to 9, 26, 52, and 26 by default. You can also customize the color and thickness of each line according to your preferences. To remove the indicator, click the corresponding close button.</span></div><div class="ace-line ace-line old-record-id-LQuRdn3FKoxJNUxtPQIuobDqsnc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Lja1dHXw3ov7v8xLrm5uAzu2sLg"><span style="font-size: 16px;">*BTN-<strong>Spot Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/exchange/BTC_USDT">https://www.mexc.com/exchange/BTC_USDT</a>*</span></div><div class="ace-line ace-line old-record-id-GtGfd1EcNo49iHxBdHZuRFE2sJh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;7013a333-3e54-4459-ba02-f2d3637433a1&quot;,&quot;height&quot;:640,&quot;width&quot;:1280,&quot;currHeight&quot;:640,&quot;currWidth&quot;:1280,&quot;natrualHeight&quot;:640,&quot;natrualWidth&quot;:1280,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FHcKCbQIRfoz6idxzIQPuTWqrsIa%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;HcKCbQIRfoz6idxzIQPuTWqrsIa&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:294040,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AZn8dhuujodhThx6HLauN0sEs3c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260716175539315FOY6zazhpLLjD0.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJIY0tDYlFJUmZvejZpZHh6SVFQdVRXcXJzSWEiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQVpuOGRodXVqb2RoVGh4NkhMYXVOMHNFczNjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9IY0tDYlFJUmZvejZpZHh6SVFQdVRXcXJzSWEvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/HcKCbQIRfoz6idxzIQPuTWqrsIa/?mount_node_token=AZn8dhuujodhThx6HLauN0sEs3c&amp;mount_point=docx_image" data-width="1280" data-height="640" data-lark-image-uri="drivetoken://HcKCbQIRfoz6idxzIQPuTWqrsIa" data-lark-image-width="1280" data-lark-image-height="640" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-UuycdPIzWoGPexxrjH7ukBKzsOh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-JBXpdSkqRo0tBHx3uO0uDZ3ssue"><strong>7. Ichimoku Cloud FAQ</strong></h2><div class="ace-line ace-line old-record-id-At7idkd3OopONMxx8h3uIDHHsVd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-IrCdd8nSNot8HjxYlAPut76gsXc"><span style="font-size: 16px;">7.1 What is the Ichimoku Cloud?</span></h3><div class="ace-line ace-line old-record-id-KFTmdiGmLoiwKtxq4tluDZ7HsrN"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-E3aKdQnUDoj8JYxElppur489s7b"><span style="font-size: 16px;">The Ichimoku Cloud is a comprehensive technical analysis indicator consisting of the Conversion Line, Base Line, Lagging Span, Leading Span A, and Leading Span B. It displays trend direction, momentum, and potential support and resistance areas, allowing traders to assess market conditions at a glance.</span></div><div class="ace-line ace-line old-record-id-EBnZdlbBMoLWqexBPHouQBSIsjc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ECCVdfh7EoOImhxa2GEuNGy0s0c"><span style="font-size: 16px;">7.2 How do I interpret the Ichimoku Cloud?</span></h3><div class="ace-line ace-line old-record-id-IwYCdy8y8oOxqTxbno8uheM4sKf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VDshdyVP3ohWSxxZ3v1u2oexsVe"><span style="font-size: 16px;">The main method is to observe the price's position relative to the cloud. Prices above the cloud indicate a bullish trend, prices below indicate a bearish trend, and prices inside signal consolidation. Traders may also consider the cloud color, with green indicating bullish conditions and red indicating bearish conditions, together with line crossover signals.</span></div><div class="ace-line ace-line old-record-id-SezVdY63JoAYXzx4J0DuVCJNsqh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-JR0idltS1oGvulxb0wfuSIgOsoe"><span style="font-size: 16px;">7.3 What are the main Ichimoku Cloud buy and sell signals?</span></h3><div class="ace-line ace-line old-record-id-CjRGdaf9YoTFe8xankUuYMRMsbf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-YjhcdYVEDoRbWPxWKn7uGJNnsof"><span style="font-size: 16px;">The main buy signals include:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Ot9NdtVKooQAJ6xrFRdun7Y3sEf" data-list="bullet"><div><span style="font-size: 16px;">The price breaking above the cloud</span></div></li><li class="ace-line ace-line old-record-id-YBMWdSmzWodSrix1bsJuVu8ps8g" data-list="bullet"><div><span style="font-size: 16px;">The cloud changing from red to green</span></div></li><li class="ace-line ace-line old-record-id-M5zGdVSVyokHLtxn1yyuVZuAskf" data-list="bullet"><div><span style="font-size: 16px;">The Conversion Line crossing above the Base Line</span></div></li><li class="ace-line ace-line old-record-id-RfuLdeLA1opxOHxrsMOuZrU8sCh" data-list="bullet"><div><span style="font-size: 16px;">The price crossing above the Base Line</span></div></li></ul><div class="ace-line ace-line old-record-id-MGMkd6aSRo5JyMxB5ubuw2OHs8g"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CXBVdYIpnogfXAxec7cukWGwsSH"><span style="font-size: 16px;">The main sell signals are the opposite:</span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-Js1pdZQzjoYFkfxwOusuutMbsjc" data-list="bullet"><div><span style="font-size: 16px;">The price breaking below the cloud</span></div></li><li class="ace-line ace-line old-record-id-Bk9SdjQWzoBSZDxQGksun0itsRG" data-list="bullet"><div><span style="font-size: 16px;">The cloud changing from green to red</span></div></li><li class="ace-line ace-line old-record-id-CIzhd6Jleom7IdxBEbnuHwTIsoh" data-list="bullet"><div><span style="font-size: 16px;">The Conversion Line crossing below the Base Line</span></div></li><li class="ace-line ace-line old-record-id-FewjdPHEroDOHnxxDFLudWXZssd" data-list="bullet"><div><span style="font-size: 16px;">The price crossing below the Base Line</span></div></li></ul><div class="ace-line ace-line old-record-id-RaHidGemooHUnXxBUhBu5CLBsNL"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-UKyKdhSY3ovFcZxJIOtuXtwVsfe"><span style="font-size: 16px;">7.4 Does the Ichimoku Cloud strategy have a high success rate?</span></h3><div class="ace-line ace-line old-record-id-AJsqdJdbZoRqM9xxyMcu5ANjsij"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Wi70d5MVzoN5r1xsWjzuqCofsye"><span style="font-size: 16px;">No indicator can guarantee profits. The Ichimoku Cloud generally performs better in clearly trending markets but may generate false signals during sideways or ranging conditions. Using multiple confirmation signals, combining the indicator with other tools, and applying strict stop-loss management may improve the reliability of the strategy.</span></div><div class="ace-line ace-line old-record-id-HiJvdrgsKoUuEBxCzfCu94NhsTh"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-DuVKdMXPaoxy3exyX9ZueU43sMa"><span style="font-size: 16px;">7.5 Is the Ichimoku Cloud suitable for day trading?</span></h3><div class="ace-line ace-line old-record-id-XiGNdG3WZoJe31xWKEkug7QNsnc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-RzzNdGoyLoxPg4xuYJnuIZBtsDk"><span style="font-size: 16px;">Yes. Short-term traders can use the indicator on lower timeframes. However, because shorter timeframes contain more market noise, it is recommended to confirm the broader trend on a higher timeframe first and then look for entries in the same direction on a lower timeframe. Stop-loss levels may also need to be tightened accordingly.</span></div><div class="ace-line ace-line old-record-id-IIigd22EyoyY9ExnVVmu0nNvsvc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-PJ3ldplU3o8hJyxUgJ4uRi8JsYf"><span style="font-size: 16px;">7.6 How do I use the Ichimoku Cloud indicator on MEXC?</span></h3><div class="ace-line ace-line old-record-id-NaMXdHKPoogqmHxRZZVuPdaYsIh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ZOeLdOhRkooOiQxeOacuXSQasvC"><span style="font-size: 16px;">Log in to the <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> official website and go to the Spot or Futures trading page. Click Indicators and select Ichimoku Cloud to enable it. The indicator's parameters and line styles can also be customized.</span></div><div class="ace-line ace-line old-record-id-XR6ldiKYVoEmBJxwuj9uE6TTsNc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-B2XBdnH87oA6qaxheyiuPyVcsDM"><span style="font-size: 16px;">The Ichimoku Cloud provides traders with a powerful tool for understanding market trends and is particularly suitable for trend-following strategies. However, no indicator is effective under all market conditions. It is recommended to combine the Ichimoku Cloud with other indicators and set appropriate stop-loss levels when opening positions on MEXC to manage trading risk.</span></div><div class="ace-line ace-line old-record-id-VXridr9xRoXxqzxVhVUuI1PwsSb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KskTdYmEeotJuqxMFb3uLZdLs5b"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-OqJGdEkgvoXODYxvmbFutoLYsAd" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576" style="font-size: 16px;">How to Use Moving Average Indicators in Trading</a></div></li><li class="ace-line ace-line old-record-id-DBgVdVGRKoXxyFxvCQjuv19zsce" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Exponential Moving Average Indicator in Trading</a></div></li><li class="ace-line ace-line old-record-id-TqjXdY9tZowuP5xl9eKuMkdGsDb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536" data-lark-is-custom="true" style="font-size: 16px;">How to Use Bollinger Bands in Trading</a></div></li><li class="ace-line ace-line old-record-id-OsTad75uSoELnGxTT7quCW4GsZd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-parabolic-sar-indicator-in-trading-416910594228448256" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Parabolic SAR Indicator in Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-SIzBdrpTJoKJDzxUcaNuLViMsKg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MSZ1dYUm5olt4rxd9FDuzI2jsGn"><span style="font-size: 16px;"><strong>Risk Warning: </strong>Technical indicators are based on historical data and do not guarantee future performance. Digital assets are highly volatile. Trade cautiously based on your risk tolerance and avoid blindly following market trends.</span></div></div>

How to Trade Pre-Market Perpetual Futures on MEXC?

<div data-page-id="UwG5dq511oMKYQxBCW3u9uPysqe" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusUIZZzfGUjVFpZGfpn1wItg"><strong>1. Advantages of Pre-Market Perpetual Futures</strong></h2><div class="ace-line ace-line old-record-id-doxusntWgf3SNaAuZWyG66wtt4f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-AJYRdZfAHomI9txnyPLuE5IBsdf"><span style="font-size: 16px;"><strong>Early Positioning</strong>: Participate in trading before the official Futures go live. Stay ahead of the market and seize first-mover advantages.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-Rw8jduUtioXhrhxSUgKu2K6tspc"><span style="font-size: 16px;"><strong>Profit from Volatility</strong>: Leverage the high volatility of popular tokens before listing to capture potential gains.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-YjqIdMtZxoQ1ZoxjN5duWBhbsSb"><span style="font-size: 16px;"><strong>Seamless Transition to Standard Futures</strong>: Once the token is officially listed, the Pre-Market Perpetual Futures will automatically convert into standard perpetual Futures. No need to transfer positions—trading continues without interruption.</span></div><div class="ace-line ace-line old-record-id-doxusv9NnDYFmcySY0Fj1IZHKrg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusytpGdyEzTc7QMwURAh39ed"><strong>2. How to Trade Pre-Market Perpetual Futures on MEXC</strong></h2><div class="ace-line ace-line old-record-id-doxusQT34EYlOKIOIZNs8uQT33f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusOYV6Ui2RdifwT80JNPSRAh"><span style="font-size: 16px;">2.1 Web</span></h3><div class="ace-line ace-line old-record-id-doxusKeDGJoEpYDnN84VzrRc6Dc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusa9DgP7U5IeH55c874S5Dme"><span style="font-size: 16px;">Open and log in to the <a data-lark-is-custom="true" href="https://www.mexc.com">MEXC official website</a>. Click <strong>Futures</strong> in the top navigation bar to enter the Futures trading page.</span></div><div class="ace-line ace-line old-record-id-doxus19tGfydGamRkoG3Q9mBLpb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusMJS2VlWogJHh35f6EQnbAf"><span style="font-size: 16px;">On the trading page, click the Futures pair selector (▼) to view categories like 0 Fees, MEME, Solana Ecosystem, etc.</span></div><div class="ace-line ace-line old-record-id-doxusZqpsRzeLFpkULpfi5MkXmd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusL760VZKG8mNBR6Dar967mc"><span style="font-size: 16px;">Select <strong>Pre-Market</strong> to view all active Pre-Market Perpetual Futures pairs. Click on the pair you want to trade and start your Pre-Market Perpetual Futures trading journey.</span></div><div class="ace-line ace-line old-record-id-doxusTcOFXB7wCJdNzGytuPUpsh"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;935f56b9-2b22-4ed8-b8ed-bbafa9104b47&quot;,&quot;height&quot;:1380,&quot;width&quot;:2878,&quot;currHeight&quot;:1380,&quot;currWidth&quot;:2878,&quot;natrualHeight&quot;:1380,&quot;natrualWidth&quot;:2878,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FQrkSbtXlAohEujxynpuujSQ6sac%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;QrkSbtXlAohEujxynpuujSQ6sac&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:928870,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-TYpgdboGRoYAyCxm2zHuZtZissc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260622131220356Lg5UsLjzzaZft4.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJRcmtTYnRYbEFvaEV1anh5bnB1dWpTUTZzYWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiVFlwZ2Rib0dSb1lBeUN4bTJ6SHVadFppc3NjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9RcmtTYnRYbEFvaEV1anh5bnB1dWpTUTZzYWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/QrkSbtXlAohEujxynpuujSQ6sac/?mount_node_token=TYpgdboGRoYAyCxm2zHuZtZissc&amp;mount_point=docx_image" data-width="2878" data-height="1380" data-lark-image-uri="drivetoken://QrkSbtXlAohEujxynpuujSQ6sac" data-lark-image-width="2878" data-lark-image-height="1380" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusHNK1twDeqqQR1FIS80gZZb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusJkj7UIgHvD7bzZ4sC7dyAg"><span style="font-size: 16px;">2.2 App</span></h3><div class="ace-line ace-line old-record-id-doxusAdvtvTVYBsbIYJGecvgfhc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus9ALU6dAgGS1EZrnrq2TXhe"><span style="font-size: 16px;">1) Open and log in to the MEXC App. Tap <strong>Futures</strong> at the bottom of the homepage to enter the Futures trading page.</span></div><div class="ace-line ace-line old-record-id-MVi2dzqoxooLhgxgFzXuLQARsfc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusoqbQdriK3tt30OgIN33Sqf"><span style="font-size: 16px;">2) At the top of the Futures trading page, tap the contract pair selector (▼) to switch trading pairs.</span></div><div class="ace-line ace-line old-record-id-R4w0dJ2p7ohynbxWFkcuQlIosRe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusbHNfBpty0KoKJVQ467IV0e"><span style="font-size: 16px;">3) Under <strong>USDT-M</strong>, find and select <strong>Pre-Market</strong>. You will see all active Pre-Market Perpetual Futures pairs listed. Tap the pair you wish to trade and start your Pre-Market Perpetual Futures trading journey.</span></div><div class="ace-line ace-line old-record-id-doxusYpZuEXmN1EtNBbtR9N7cme"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;63cf28ee-ed7a-411d-9f09-9347f233b79f&quot;,&quot;height&quot;:2160,&quot;width&quot;:3129,&quot;currHeight&quot;:2160,&quot;currWidth&quot;:3129,&quot;natrualHeight&quot;:2160,&quot;natrualWidth&quot;:3129,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FZwnWbX4EUo6YTwxztf4up4AxsZE%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;ZwnWbX4EUo6YTwxztf4up4AxsZE&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1161691,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-E2uLdFwc1okch3xJMdIusqfos8I"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260622131219702OO8MRbSrFGeHUC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJad25XYlg0RVVvNllUd3h6dGY0dXA0QXhzWkUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRTJ1TGRGd2Mxb2tjaDN4Sk1kSXVzcWZvczhJIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ad25XYlg0RVVvNllUd3h6dGY0dXA0QXhzWkUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/ZwnWbX4EUo6YTwxztf4up4AxsZE/?mount_node_token=E2uLdFwc1okch3xJMdIusqfos8I&amp;mount_point=docx_image" data-width="3129" data-height="2160" data-lark-image-uri="drivetoken://ZwnWbX4EUo6YTwxztf4up4AxsZE" data-lark-image-width="3129" data-lark-image-height="2160" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxuskgygQ2C1qIR9A6VODgj9cf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusyQs4v6dOI3p36VUL0zL3zd"><strong>3. Risks of Pre-Market Perpetual Futures</strong></h2><div class="ace-line ace-line old-record-id-doxusEFmtEOgT8rDvBxjzCOKrNe"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusVZr9iuKZuDKZ4uxFEkJgEg"><strong style="font-size: 16px;">3.1 Lower Liquidity</strong></h3><div class="ace-line ace-line old-record-id-doxusR7QNkp1Dz0iRpMH7Iv2ktA"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-LHFcde9tJoAwjKx8QKUubCjcstc"><span style="font-size: 16px;">Compared to standard perpetual Futures, Pre-Market Perpetual Futures typically have fewer participants and shallower order books.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-WaHEdXeGjoLmwRx6aldunaHVsng"><span style="font-size: 16px;">Lower liquidity can lead to wider bid-ask spreads and more significant slippage.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-R3NXdIUHHo0aFXx3NGVuQupOsLg"><span style="font-size: 16px;">The lack of sufficient counter-parties may affect your ability to open or close positions quickly.</span></div><div class="ace-line ace-line old-record-id-doxusmSd02yPZ0w24oyCT6OlnGg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusVkBLUtvj6fTOnaoRLNyWhg"><strong style="font-size: 16px;">3.2 Higher Volatility</strong></h3><div class="ace-line ace-line old-record-id-doxus2qJnq5PxTIriMnFzUrAc4d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-GLVFd113HofXzIxcnqyub12xsEh"><span style="font-size: 16px;">Due to fewer participants and less balanced orders, the market is more sensitive to price swings.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CQEKdda0goHrCzxelSMugBeysoP"><span style="font-size: 16px;"><strong>Funding Rate Volatility</strong>: With fewer index price sources, the funding rate may fluctuate dramatically, potentially offsetting profits or even leading to losses if not properly managed.</span></div><div class="ace-line ace-line old-record-id-MpBkd4PeLoAzGvxBhGVu66Bdsnl"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ENDvdrIZfo9S0TxAbbQuBrvPs7c"><span style="font-size: 16px;"><strong>Important Reminder:</strong> Pre-Market Perpetual Futures involve higher volatility, lower liquidity, and a greater risk of forced liquidation. Prices are highly sensitive to market sentiment and information, making this a speculative product. Please evaluate your risk tolerance carefully before participating, even as we continue to improve the trading experience.</span></div><div class="ace-line ace-line old-record-id-doxus700YIHOXp0ooAdpG0MNsUc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnqziNFLloQi9U2aeNGLAjg"><strong>4. Pre-Market Perpetual Futures FAQs</strong></h2><div class="ace-line ace-line old-record-id-doxusA2AmJLLw5MBvQnjjLtYPEc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuszViJq7GFWAko046nvAl2zb"><span style="font-size: 16px;">4.1 What happens after a token's Pre-Market Perpetual Futures are launched?</span></h3><div class="ace-line ace-line old-record-id-doxusi8DgdLZRESq7tk63nSj2Bg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusavxzpiPulrAv5ljGv8mMCf"><span style="font-size: 16px;"><strong>4.1.1 Before Spot listing: </strong>The Futures contract remains in Pre-Market Perpetual mode and trading continues normally.</span></div><div class="ace-line ace-line old-record-id-doxusthk82yKsjCOesreOykTBag"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdfM3mlVpwTOxphxDBIwJwg"><span style="font-size: 16px;"><strong>4.1.2 After Spot listing: </strong>If no abnormalities occur, the Futures contract will gradually transition into a standard perpetual Futures contract. The exact transition time will be announced separately.</span></div><div class="ace-line ace-line old-record-id-doxusVqRjhF9DHUgXeJFO4seWFW"><span style="font-size: 16px;"><br></span></div><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusEqiRhhKHz0HhUvzCw10Qvg" start="1"><li data-list="number"><div><strong style="font-size: 16px;">During the transition period:</strong></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusoWaRJQurwwNe3fUJdP786b" start="1"><li data-list="number"><div><span style="font-size: 16px;">1) No manual action is needed: conversion is automatic.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusQP9uRQaasX7xzWwQvPNSQb" start="1"><li data-list="number"><div><span style="font-size: 16px;">2) Candlestick chart data and trading entry points remain unchanged.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusrID2wMgoxzXMTb125SWqAg" start="1"><li data-list="number"><div><span style="font-size: 16px;">3) Open orders and existing positions remain intact.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxuspqBphOTeqhEB9Kq9N1UgDf" start="1"><li data-list="number"><div><span style="font-size: 16px;">4) Risk parameters and index pricing sources may be adjusted.</span></div></li></ol><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusFZqdeX9bfTpD2NKMUqMUKb" start="1"><li data-list="number"><div><span style="font-size: 16px;">5) After Spot listing, due to market-based price discovery, Futures prices may fluctuate sharply. Please manage your positions and risk accordingly.</span></div></li></ol><div class="ace-line ace-line old-record-id-doxusnSAKCMj5nBoDzEsAZFj1qf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYj42Djogb6ZzpWL8wZ4r7Q"><span style="font-size: 16px;"><strong>4.1.3 If the Spot listing is canceled or other risk issues arise,</strong> the token's Pre-Market Perpetual Futures may be delisted. Delisting and settlement details will be announced separately.</span></div><div class="ace-line ace-line old-record-id-doxusWWCXW812e4lLrnE6Gngtlg"><span style="font-size: 16px;"><br></span></div><ol style="text-align:left" class="ace-line ace-line old-record-id-doxusrtWW0eXhCcdS8djJlhjyCd" start="1"><li data-list="number"><div><strong style="font-size: 16px;">Settlement guidelines:</strong></div></li></ol><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusM4S29K36qdanONljLp1kUc" data-list="bullet"><div><span style="font-size: 16px;">Settlements will be executed at the fair price.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuszo5FD98nA4nzLLbkrniIie" data-list="bullet"><div><span style="font-size: 16px;">The settlement schedule will be announced in advance and displayed on the trading page.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRgXiyfqOX7Vb24GqOM9Hmf" data-list="bullet"><div><span style="font-size: 16px;">After the announcement, new positions will be restricted, and only position closure will be allowed.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxushikqa63eK6CuSGVo26Wedb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2QQTOPdSe9Xscbm4FtCgVd"><span style="font-size: 16px;">4.2 Trading mechanism for Pre-Market Perpetual Futures</span></h3><div class="ace-line ace-line old-record-id-doxusl42rAjLcoVq7ouhIlCRLvd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus06oDtLrcgJDvEfuEZI5Rpb"><span style="font-size: 16px;"><strong>Modes: </strong>Both isolated and cross margin modes are supported and available on the Website and App. Users can choose to open long or short positions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSdoRZMUZsZMwmr3pbz6F6e"><span style="font-size: 16px;"><strong>Liquidation Mechanism: </strong>Same as standard perpetual Futures, ensuring market stability.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgEBta0FMaEjokNVsXVelmc"><span style="font-size: 16px;"><strong>Fees: </strong>Fee structure is identical to standard perpetual Futures.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbIRfbdM3Lot3Mu4A7ypm2b"><span style="font-size: 16px;"><strong>Pricing: </strong>Determined by market forces and may deviate from the actual Spot listing price.</span></div><div class="ace-line ace-line old-record-id-doxus335Tesfwr6vIzSWvwZBwMh"><span style="font-size: 16px;"><strong>Dynamic parameter adjustments: </strong>MEXC may adjust parameters like funding rate limits and intervals, tick size, max leverage, initial margin, and maintenance margin in response to market risks. Always refer to the trading page for the latest information.</span></div><div class="ace-line ace-line old-record-id-doxustAIeO7qQsBI95XWv7V2kXg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusLnsd6jYZJi3MD2udjp4iBg"><span style="font-size: 16px;">4.3 Difference between pre-market Spot and Pre-Market Perpetual Futures</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-Yq2rdML4SoRTMDxmXYtuuRgiscg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CtSOdLCI9oxv2kxhDT2uoCIWs4e"><span style="font-size: 16px;">Pre-market Spot trading involves trading actual tokens while Pre-Market Perpetual Futures are USDT-margined derivatives and do not involve ownership of the underlying token.</span></div><div class="ace-line ace-line old-record-id-doxusnYhCkacHPIknm4CPCqW17f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusyFmEpjGjoyaOFnyTHTSnB2"><span style="font-size: 16px;">4.4 Will Pre-Market Perpetual Futures affect a token's Spot listing price?</span></h3><div class="ace-line ace-line old-record-id-doxusHImKjYIQ8iZHM3RiR9uxZe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1NV3qZydFWgZI0r0jGklZf"><span style="font-size: 16px;">While Pre-Market Perpetual Futures can reflect market expectations, the actual Spot listing price is influenced by multiple factors and may not directly align with the Futures price. Ultimately, both prices are driven by supply and demand dynamics.</span></div><div class="ace-line ace-line old-record-id-doxusEpVRTOAnn4ZwCARdJw8lwd"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusmSvSoxHzKNym0xXbtEyTDf"><span style="font-size: 16px;">4.5 Will the transition from pre-market to official perpetual Futures cause losses?</span></h3><div class="ace-line ace-line old-record-id-doxusbdN7Lfig61tKPn9G1YLCOh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusOw2Rsxq85LbHHJyk6UK2jg"><span style="font-size: 16px;">The transition process itself does not incur any additional costs or losses. All profits and losses result from normal market movements, not the conversion mechanism.</span></div><div class="ace-line ace-line old-record-id-doxus48xhdwWZ9VnmSzIidgz6ag"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusr33Clfot5EbFZayIWZrSdd"><span style="font-size: 16px;"><strong>Reminder: </strong>The Pre-Market Perpetual Futures market has lower liquidity, higher volatility, and a significant risk of forced liquidation. Prices are sensitive to market sentiment and news, and the product is inherently speculative. Please assess your risk tolerance carefully before participating.</span></div><div class="ace-line ace-line old-record-id-doxusRz5beCJy2lkWPhZxqOzZiO"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-KGVcdWYawowgTgxXudNuGZRAsDO"><strong style="font-size: 16px;">Recommended Reading:</strong></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-BNm3dIbg6oleJ2xg2BsuvkFcsUf" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/futures-trading-faq-305425827477864448" style="font-size: 16px;">Futures Trading FAQ: A Complete Beginner's Guide</a></div></li><li class="ace-line ace-line old-record-id-HvIodgB7roPrixxhy58u8MQvs0g" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-the-mexc-app-305421274812529664" data-lark-is-custom="true" style="font-size: 16px;">How to Trade Futures on the MEXC App</a></div></li><li class="ace-line ace-line old-record-id-BC9Rd6CAOoBJ7kxzbCEuTKzusUf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920" data-lark-is-custom="true" style="font-size: 16px;">Copy Trading Guide For Lead Traders</a></div></li><li class="ace-line ace-line old-record-id-MoVIdnv5XobK04xY3TmuU3Uasye" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-futures-loss-coverage-faq-353767290712346624" data-lark-is-custom="true" style="font-size: 16px;">MEXC Futures Loss Coverage FAQ</a></div></li><li class="ace-line ace-line old-record-id-BqQLd4aGhoHOOhxsvEOuuNZlsfh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/faq-on-liquidation-for-futures-trading-8123281969561" data-lark-is-custom="true" style="font-size: 16px;">FAQ on Liquidation for Futures Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-doxuscrEJoQLewHp4aRWcn5l0kd"><br></div></div>

MEXC Copy Trade Terms Explained

<div data-page-id="DLYjd9F7ooSAtRxWWRkuAvIPspc" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-doxusT3V0dQpGYDtmA7A1N4dW65"><span style="font-size: 16px;">In copy trading, investors grow their assets by replicating the trades of professional traders. Copy trading's popularity is indebted to its simplicity and convenience. To make the most of this trading method, understanding its key concepts and terminology is essential for beginners. This article provides a detailed breakdown of the core concepts in MEXC Copy Trade, helping you better understand this investment tool.</span></div><div class="ace-line ace-line old-record-id-doxuskWi6YqihSKv6aGKhW4SwcG"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuskgHGeGQcJjjnzsZ02GSVMg"><strong>1. Copy Trade Terms</strong></h2><div class="ace-line ace-line old-record-id-BhASdfirFowMEexRDjsuObVaslb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus92x5LADiQCvG6n6MR4EGud"><span style="font-size: 16px;">These terms are found on the [<a data-lark-is-custom="true" href="https://futures.mexc.com/copyTrade/setting/22394266">Copy Trade Parameter Settings</a>] page. Understanding and mastering them will help you quickly set up copy trading parameters and start copy trading.</span></div><div class="ace-line ace-line old-record-id-doxusgbBqwY6f4tvcVyXKEqf2Ff"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;1b364f01-fb24-4515-9273-24796d75802d&quot;,&quot;height&quot;:442.63537906137185,&quot;width&quot;:804,&quot;currHeight&quot;:442.63537906137185,&quot;currWidth&quot;:804,&quot;natrualHeight&quot;:1220,&quot;natrualWidth&quot;:2216,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.3628158844765343,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FVl25bXxxrok2IHx08CUufc9OsOg%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;Vl25bXxxrok2IHx08CUufc9OsOg&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:377797,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-M0eFd3Vh3o1PByxGRDXuXcLes6o"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611153237947II0dmjozfGxa0P.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJWbDI1Ylh4eHJvazJJSHgwOENVdWZjOU9zT2ciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTTBlRmQzVmgzbzFQQnl4R1JEWHVYY0xlczZvIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9WbDI1Ylh4eHJvazJJSHgwOENVdWZjOU9zT2cvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Vl25bXxxrok2IHx08CUufc9OsOg/?mount_node_token=M0eFd3Vh3o1PByxGRDXuXcLes6o&amp;mount_point=docx_image" data-width="2216" data-height="1220" data-lark-image-uri="drivetoken://Vl25bXxxrok2IHx08CUufc9OsOg" data-lark-image-width="2216" data-lark-image-height="1220" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusP5uKw17RITKjfyDW0obxVg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusOcJYLkSaGevin9G0Uo5Oyc"><span style="font-size: 16px;">1.1 Copy Trade Mode</span></h3><div class="ace-line ace-line old-record-id-doxustcwzmwMbpyp77cGAIkppHc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus7zu2m7eY9tTO8Jt9ZoiCX2"><span style="font-size: 16px;"><strong>Smart Ratio: </strong>This mode replicates the trader's fund allocation proportionally.</span></div><div class="ace-line ace-line old-record-id-QlOLdStWkofhyRxubvwunPD8sRf"><span style="font-size: 16px;">Example: If a trader has an account balance of 1,000 USDT and uses 100 USDT for a trade (10% of their assets), and you have 110 USDT in your copy trade sub-account, your order will use 11 USDT (10% of your assets).</span></div><div class="ace-line ace-line old-record-id-doxusN8EF5SDAMvT72F95ULjPrf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-NyeRdmOTVosU5cxAYhuuALersih"><span style="font-size: 16px;"><strong>Fixed Amount</strong>: In this mode, you invest a predetermined amount of margin for each copied trade.</span></div><div class="ace-line ace-line old-record-id-TdYjdtxofoC8SvxutrouHSFMsYW"><span style="font-size: 16px;">Example: If you set a fixed amount of 50 USDT, regardless of the trader's trade size, your order will always use 50 USDT as margin.</span></div><div class="ace-line ace-line old-record-id-doxus4heBG6DYyDjSqyWWW3IIhb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-KNmydcZbDopABpxa52Zu5QnRsje"><span style="font-size: 16px;"><strong>Fixed Ratio</strong>: This mode sets your order quantity as a multiple of the trader's order quantity.</span></div><div class="ace-line ace-line old-record-id-Y4D1dj6kPonb2Mx6Kzwulm52sTd"><span style="font-size: 16px;">Example: If you set a fixed follow ratio of 0.7 and the trader executes an order of 100 contracts, your order will be for 70 contracts.</span></div><div class="ace-line ace-line old-record-id-doxusr2ruM8rJ3NESaWX6gTSc4d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusZwXQQiSuqCIx84uWCfCB7f"><span style="font-size: 16px;">1.2 Copy Trade Amount</span></h3><div class="ace-line ace-line old-record-id-doxusJ0Qld6HdGFOemrBoTnYT6e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusB8m8AZQptCZWsSEqbKp4Pc"><span style="font-size: 16px;"><strong>Available: </strong>The displayed available balance refers to the available balance in your Spot account. After submitting Copy Trade information, the system will transfer the specified funds from your Spot account to your Copy Trade account. Note that the copy trading funds must be ≥ 0.01 USDT.</span></div><div class="ace-line ace-line old-record-id-doxusT4athY9Sx8T88LpN5zZUZb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxushPex7xYl56CT2OCIZDowkg"><span style="font-size: 16px;">1.3 Account Stop-Loss</span></h3><div class="ace-line ace-line old-record-id-Iiqmd6U6Com7ZgxZRd6u7VS1sEe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-C3ZUdhr2josLmHxuYOEuVGNGsJg"><span style="font-size: 16px;"><strong>Account Stop-Loss</strong>: When your account equity reaches the preset threshold, your copy trading relationship will be canceled. All your open orders will be closed at market price, and the remaining assets will be transferred back to your Spot account. Due to market fluctuations, the actual net value at the time of cancellation may differ from your preset value.</span></div><div class="ace-line ace-line old-record-id-doxusnUCw8osrW4VA5M8sHwiheF"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusrnreBTu1l39iNgtBKiWqKf"><span style="font-size: 16px;">1.4 Trader Liquidation Settings</span></h3><div class="ace-line ace-line old-record-id-doxusPRLYYPoNFuS2PXM6UMgmJb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus8rPbaqyw2aNPqYODgDVOgd"><span style="font-size: 16px;"><strong>Follow to Close: </strong>If the trader's position is liquidated, your corresponding copy trade will also be closed accordingly.</span></div><div class="ace-line ace-line old-record-id-doxuscOkIjqR6jxGYz3aoVvsKpe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusZohzbXt1IRA69qNqrFcvcd"><span style="font-size: 16px;"><strong>Do Not Follow: </strong>Once selected, when a trader's lead trade position is liquidated, your corresponding copy trade position will not follow to close. When that happens, the system will send you a notification, and you must go to <strong>My Copy Trades</strong> → <strong>Current</strong> to manage the copy trade position. You can choose to enable <strong>Auto Margin Addition</strong> to lower the liquidation risk or close the position.</span></div><div class="ace-line ace-line old-record-id-doxussgPM3SMq6Yes2szHtvx9Zg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus3fZqOJvXdTNTSwqZ0nIs1e"><span style="font-size: 16px;">1.5 Risk Control Settings</span></h3><div class="ace-line ace-line old-record-id-doxusHvcMV3DTu5T4kUjQ2tGlXc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus0SAMxYp8EHeSpPm7wbRb5c"><span style="font-size: 16px;"><strong>Maximum Ratio per Order: </strong>When the cost of a single Futures order reaches the maximum asset ratio, the system will place the order at the maximum order cost. You can set a maximum order ratio to prevent individual orders from being too large.</span></div><div class="ace-line ace-line old-record-id-doxusaOsLPljr4Ry7g4eoqnuo7e"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxustJA3W0p4iMvLntrWMDSNcc"><span style="font-size: 16px;">1.6 Margin Mode</span></h3><div class="ace-line ace-line old-record-id-doxusnDg0mzXnL5lYZQI17jKzif"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus75WFpsdEmXqnUMeNnIdkze"><span style="font-size: 16px;"><strong>Follow </strong><strong>T</strong><strong>rader</strong><strong>: </strong>If the trader uses the isolated margin mode for their orders, the follower will also use the isolated margin mode. If the trader uses the cross margin mode, the follower will also use the cross margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusiL3N170dmJtGm927f00Izf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxushBzRni48yGuOvAojvglNlf"><span style="font-size: 16px;"><strong>Cross: </strong>Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the cross margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusl9UZGBCGDm48gUTzdljrrg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusVMyoV5kJzTeydYti1hOZRh"><span style="font-size: 16px;"><strong>Isolated: </strong>Regardless of whether the trader uses isolated margin or cross margin, the follower will always use the isolated margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusx1M8elt7Q6KNiaydaOP0Ij"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusJuUYbBb8hYKCZuarrJL86b"><span style="font-size: 16px;">1.7 Margin Settings</span></h3><div class="ace-line ace-line old-record-id-doxus8rWOEwEWYlJxUtIRPiXo0d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus5k0BgEJY6gODymhSlJDe2c"><span style="font-size: 16px;">Note: These settings only apply to positions in the isolated margin mode.</span></div><div class="ace-line ace-line old-record-id-doxusKVTxNsgLcg3y4EMA3mnkcb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustytXDwVVvbcMC9akBeTbYf"><span style="font-size: 16px;"><strong>Do Not Adjust Margin: </strong>Your copy trading position may not be able to adjust the margin to reduce the risk of forced liquidation.</span></div><div class="ace-line ace-line old-record-id-doxusz8Lm2AoNXCtm07r03WnZjc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXzAsf67AtJUf0jiL7okE0g"><span style="font-size: 16px;"><strong>Auto Margin Addition: </strong>To protect against liquidation, your copy trading balance will automatically be used as additional margin when your isolated position is at risk. While this helps prevent liquidation, in extreme market conditions, you could lose all funds allocated to this trader.</span></div><div class="ace-line ace-line old-record-id-doxuse7AopySkSALsz0dsv4KVUe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFB4NVJIyMYI4AAC5rYhuJg"><span style="font-size: 16px;"><strong>Base on Trader's Settings: </strong>The margin for your copy trading position will be based on the trader's margin settings, including <strong>Auto Margin Addition</strong> and manual margin adjustment.</span></div><div class="ace-line ace-line old-record-id-doxusLVuxScA67qcsI7662MHL3f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusxHRYPzRTqgP7GXdXN0QMog"><span style="font-size: 16px;">1.8 Leverage &amp; Slippage Settings</span></h3><div class="ace-line ace-line old-record-id-doxusAPtyt8e1zMM9IJtRfTlVNh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusZaxJvnbCI7hiWZu6Nd9Jtu"><span style="font-size: 16px;"><strong>Slippage: </strong>Copy trades use IOC (Immediate or Cancel) limit orders that follow your slippage settings. If no matching orders are found within your specified slippage range, the order will be automatically canceled, and the copy trade will be marked as failed.</span></div><div class="ace-line ace-line old-record-id-doxusgrX2LVqxIs54O6JDLjlmrg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusbCE2TxVwd8BxXAj7CUcHOf"><strong>2. Trader Terms</strong></h2><div class="ace-line ace-line old-record-id-doxusnFQQ35CPHjZQSIZudPuOcf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusUJ23LsDhySYECCcjkKUkFe"><span style="font-size: 16px;">These terms are located on the <strong><a data-lark-is-custom="true" href="https://futures.mexc.com/copyTrade/leader/155B59A">Trader Details</a></strong> page. Here, you can explore the trader's data from multiple dimensions to help you choose a trader that fits your trading style.</span></div><div class="ace-line ace-line old-record-id-doxusjciEDE8OcSpWmYceQCla6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;375932cc-78a7-426a-b314-e5f9c9e61beb&quot;,&quot;height&quot;:443.846291331546,&quot;width&quot;:724,&quot;currHeight&quot;:443.846291331546,&quot;currWidth&quot;:724,&quot;natrualHeight&quot;:1372,&quot;natrualWidth&quot;:2238,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:0.32350312779267204,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FNG94b5GpDotZ20xK1TuuI6Zjszf%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;NG94b5GpDotZ20xK1TuuI6Zjszf&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:467459,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AmKEdscU5oehNBxuCkWukAFNsEb"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611153238450qD8k5nz6fQna8j.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJORzk0YjVHcERvdFoyMHhLMVR1dUk2WmpzemYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQW1LRWRzY1U1b2VoTkJ4dUNrV3VrQUZOc0ViIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ORzk0YjVHcERvdFoyMHhLMVR1dUk2WmpzemYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/NG94b5GpDotZ20xK1TuuI6Zjszf/?mount_node_token=AmKEdscU5oehNBxuCkWukAFNsEb&amp;mount_point=docx_image" data-width="2238" data-height="1372" data-lark-image-uri="drivetoken://NG94b5GpDotZ20xK1TuuI6Zjszf" data-lark-image-width="2238" data-lark-image-height="1372" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxus0dnkVA0otCEVTYMTL1y4Yb"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxuspdrUqWvc8Squkj1l33CiYb"><span style="font-size: 16px;">2.1 Performance</span></h3><div class="ace-line ace-line old-record-id-LXk2dbIZro9gLaxvMi1uFXj4s7c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-VqyKdro41oTqwHxbU8su4ouzs2g"><span style="font-size: 16px;">Total PNL: The cumulative profit and loss from all previously closed trades.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-YvCZdf7J9oEjE4xCLdXuCJlvsCc"><span style="font-size: 16px;">Total ROI: Total profit divided by the sum of historical margin used for copy trading.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-WZsPdQlluoFttexEad4ueQa7sHe"><span style="font-size: 16px;">Total No. of Followers: The number of unique users following this trader. Multiple follows from the same user are counted only once.</span></div><div class="ace-line ace-line old-record-id-IB5Ad5QW5oYmkJxdVRPuoexGsGb"><span style="font-size: 16px;">Followers' PNL: The total profit and loss gained by all followers of this trader.</span></div><div class="ace-line ace-line old-record-id-AC9HdQsvpo0dFNx7c61uSajqsKf"><span style="font-size: 16px;">Avg Order Amount: The trader's average order value for opening positions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-D86Mdz9S3owfxHxPClKuhloFsqA"><span style="font-size: 16px;">PNL Ratio: The ratio of total profit to total loss.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-XJD9dwRvRoUu8kxlhTFub8NesOg"><span style="font-size: 16px;">Total Win Rate: The percentage of closed orders with a positive PNL out of all closed trades.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-NCxLdTw5Tou12jxGTfxuWozzsLd"><span style="font-size: 16px;">Trading Frequency: The average number of trades per week within the selected time period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-UVnydrV1UovO3xx5QYwuKVNisbh"><span style="font-size: 16px;">Winning Trades: The total number of lead trades closed with a positive PNL.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-F1h9dLwHxoTwocxZkHOuT8cjs8c"><span style="font-size: 16px;">Losing Trades: The total number of lead trades closed with zero or negative PNL</span></div><div class="ace-line ace-line old-record-id-doxust2xTCUtiacpxXbhtoWw5Re"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusval2mW1ZaDGwVglT5ZqIMc"><span style="font-size: 16px;">2.2 Followers</span></h3><div class="ace-line ace-line old-record-id-X2F3dv3w4oYiNRxGMt5u9uD6sjb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-NZjfd9Hb0omnSZxpUdMu38t5sob"><span style="font-size: 16px;">Size of Lead Trades: The total assets in the copy trading accounts of all current followers of this trader.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-DXR0drfdfofvyYxpcJuubilpsQh"><span style="font-size: 16px;">Total Equity: Total equity in this trader's Futures account, converted to USDT.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CVUSd6O7RooYLAx4FXyum71ks5x"><span style="font-size: 16px;">Recent Trade Time: The most recent time the trader opened or closed a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RhztdlLiOoa5VmxdXeZu56o8s7c"><span style="font-size: 16px;">Fans: The number of users currently watching this trader.</span></div><div class="ace-line ace-line old-record-id-doxusydGpWhECH28mlouLhHidYc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2LCv3NwSQIIkV2IG5XDiZc"><span style="font-size: 16px;">2.3 Cumulative PNL</span></h3><div class="ace-line ace-line old-record-id-doxusoc7V3yA1ee5Wb0b3EQGmwx"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CvAodBm40oBdynx3IIzuykuysUe"><span style="font-size: 16px;">Cumulative PNL: Sum of closing PNL of all lead trades within the specific period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-AumOdDlN1oAEMoxfP0nuGkLdsAd"><span style="font-size: 16px;">Cumulative PNL Rate: The cumulative profit divided by the total margin used within the specified period.</span></div><div class="ace-line ace-line old-record-id-IYthdpDFuoleeAxGCiRujYlrsgg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusXmtm5mJ3Cbcni0rrPBNfFg"><span style="font-size: 16px;">2.4 Daily Trading Performance</span></h3><div class="ace-line ace-line old-record-id-doxusmKY2d7bq5hoDUHuHGpwI5c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Jj4hdHxpjoy5ZPxSKZ8uF8imsnb"><span style="font-size: 16px;">Daily PNL: Sum of PNL from closed orders for the day. </span></div><div class="ace-line ace-line old-record-id-VGigdUehqo4iysxGN4yuEi8FsRe"><span style="font-size: 16px;">Trading Volume: Total trading volume of all closed lead trade orders.</span></div><div class="ace-line ace-line old-record-id-doxusPXvxkfdqMSEZTTiCOJbdab"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusBWtpoBOh9qle7d2xKH6tCd"><span style="font-size: 16px;">2.5 Followers' PNL</span></h3><div class="ace-line ace-line old-record-id-doxusqF64yaH359NdcRXiyDBzug"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusXjN9QE3InLvZeOwykSo3Z1"><span style="font-size: 16px;">Followers' PNL: The total profit and loss accumulated by all followers since this trader started leading trades.</span></div><div class="ace-line ace-line old-record-id-doxus9gzrXehdHJYCbelcMJ1x7d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusF5ka9MAOLMmPJyBbCnpmgb"><span style="font-size: 16px;">2.6 Futures Preference</span></h3><div class="ace-line ace-line old-record-id-doxuscLVANXp66Q8blnTBJ5VRMg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus8F0urL10Q2UeZcrof7FEsh"><span style="font-size: 16px;">Futures Preference: Data summary of all closed lead trade orders under different Futures.</span></div><div class="ace-line ace-line old-record-id-doxusOMuJBPgaw45a28q8C9kc4d"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxus2cBsFfS8o9FCxigCm7AMxc"><span style="font-size: 16px;">2.7 Holding Duration</span></h3><div class="ace-line ace-line old-record-id-doxusvZKVePPCJVjFKyCE7ntleh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHG4OvUaHe9xzgjefVW74nb"><span style="font-size: 16px;">Holding Duration: The system automatically calculates and displays the holding periods and corresponding ROI based on each trader's strategy, including open positions. Order statistics reflect the holding duration of each order, while position statistics show the holding period for each position.</span></div><div class="ace-line ace-line old-record-id-doxusEQbt6jkzGovaxbL37pLprb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusWKWu8zR5XEBhaGifd5peSc"><span style="font-size: 16px;">If you want to learn more about Copy Trade, check out the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trading-tutorial-app-390734907452925952">MEXC Copy Trade Tutorial (App) </a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trade-tutorial-website-390797347687474176">MEXC Copy Trade Tutorial (Website) </a>.</span></div><div class="ace-line ace-line old-record-id-Din1dlrqvon8fexLBy8uxd0Msuc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-VfsBduAk9oeljOxNdEvuvaREsdh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-I6H7dZ5cioP6AXxRTyZuROUjssp" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-choose-mexc-copy-trade-traders-273442451564862464" style="font-size: 16px;">How to Choose MEXC Copy Trade Traders</a></div></li><li class="ace-line ace-line old-record-id-KtGXdWXQEogViQxqsWSuiaIqsae" data-list="bullet"><div><a href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920" data-lark-is-custom="true" style="font-size: 16px;">Copy Trading Guide For Lead Traders</a></div></li><li class="ace-line ace-line old-record-id-SKxwdqADwo8r02xycphugyfrsnf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/mexc-copy-trade-profit-share-rules-explained-390867312704727040">MEXC Copy Trade Profit-Share Rules Explained</a></span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1inkx1VkHsNp4xYtRyoFsc"><br></div><div class="ace-line ace-line old-record-id-doxusJmBxQffMZHZ2cTWXE9J0Vd"><br></div></div>

MEXC Copy Trade Profit Share Rules Explained

<div data-page-id="RSwNdtusxo3OW8xObNMujgJBsnh" data-lark-html-role="root" data-docx-has-block-data="true"><div class="ace-line ace-line old-record-id-QWLRdh3GFo6N1AxElG8uGrEtsrd"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/learn/article/17827791519457">Copy trading</a> is the process of replicating the trades of other traders, including all of their trading actions.</span></div><div class="ace-line ace-line old-record-id-doxus0TAFAr72HoMdB7XrVbX7oB"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusjI555sBQbHadYangJM76Zb"><span style="font-size: 16px;">If you're a standard account holder who doesn't want to miss out on market opportunities, you can choose to follow professional traders and automatically synchronize with their trading activity. To get started, refer to the following guides: "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trading-tutorial-app-390734907452925952">MEXC Copy Trade Tutorial (App) </a>" and "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/mexc-copy-trade-tutorial-website-390797347687474176">MEXC Copy Trade Tutorial (Website)</a>."</span></div><div class="ace-line ace-line old-record-id-doxusgcJP5mnEkblNCs1ftMyNEf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusXkO1CVdnzMeoF1CwqNypmg"><span style="font-size: 16px;">If you have solid trading experience and wish to become a copy trader yourself, read the "<a data-lark-is-custom="true" href="https://www.mexc.com/support/article/copy-trading-guide-for-lead-traders-390827713106257920">Copy Trading Guide For Lead Traders</a>" to learn about the process. As a trader, you also have the opportunity to earn attractive profit-sharing rewards.</span></div><div class="ace-line ace-line old-record-id-doxusFEV5ev2T8ZFDw9AdHK7jQd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuskTvkvEFjHP668GQO2DbMhd"><strong>1. How to View and Edit Profit-Share Information</strong></h2><div class="ace-line ace-line old-record-id-doxusSTM12ylwfX17j1efrKU4Mc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusBROtR78EWEPmSd0rViYaeg"><span style="font-size: 16px;">1.1 Web</span></h3><div class="ace-line ace-line old-record-id-doxusz4hZb7b5HxkCIp7RIiFxJf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusHIDVkqmS9yswvCg50BX4dd"><span style="font-size: 16px;">Open and log in to the <a data-lark-is-custom="true" href="https://www.mexc.com">MEXC official website</a>. Go to <strong>Futures</strong>, then click <strong>Copy Trade</strong> to access the copy trading page.</span></div><div class="ace-line ace-line old-record-id-doxusI5N7J1gJAjV2GZusBZmjtc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;33522739-76f5-4f73-ae46-3e14e8a96074&quot;,&quot;height&quot;:1286,&quot;width&quot;:2874,&quot;currHeight&quot;:1286,&quot;currWidth&quot;:2874,&quot;natrualHeight&quot;:1286,&quot;natrualWidth&quot;:2874,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPPerbZN9zoKodCx7bGZu2I0ms5f%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;PPerbZN9zoKodCx7bGZu2I0ms5f&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:621380,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-LJD4d0SJ3oDLhVx0ko4uXL4esfe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202606111555128075PRly0ekdfcQ83.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQUGVyYlpOOXpvS29kQ3g3YkdadTJJMG1zNWYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiTEpENGQwU0ozb0RMaFZ4MGtvNHVYTDRlc2ZlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QUGVyYlpOOXpvS29kQ3g3YkdadTJJMG1zNWYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PPerbZN9zoKodCx7bGZu2I0ms5f/?mount_node_token=LJD4d0SJ3oDLhVx0ko4uXL4esfe&amp;mount_point=docx_image" data-width="2874" data-height="1286" data-lark-image-uri="drivetoken://PPerbZN9zoKodCx7bGZu2I0ms5f" data-lark-image-width="2874" data-lark-image-height="1286" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxuswLbacvM7BKZv49dzSRueDf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus3wSIpAfSrLDdzrZ9TZj3vc"><span style="font-size: 16px;">On the copy trading page, click the <strong>&gt; </strong>on the name card to enter <strong>My Lead Trades</strong>.</span></div><div class="ace-line ace-line old-record-id-doxusEWLoa19EHfq0NB9BwBzqUf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;01f4eaeb-1a20-4dd3-a141-a464d17a2d4f&quot;,&quot;height&quot;:1220,&quot;width&quot;:2874,&quot;currHeight&quot;:1220,&quot;currWidth&quot;:2874,&quot;natrualHeight&quot;:1220,&quot;natrualWidth&quot;:2874,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDMAfbs8tcoo6JdxUjChun5Tlsvb%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;DMAfbs8tcoo6JdxUjChun5Tlsvb&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:593898,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-FuvfdXo29oOkZVxFT20uVXbKsKg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155511053aNt18hehiroDL8.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJETUFmYnM4dGNvbzZKZHhVakNodW41VGxzdmIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiRnV2ZmRYbzI5b09rWlZ4RlQyMHVWWGJLc0tnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9ETUFmYnM4dGNvbzZKZHhVakNodW41VGxzdmIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DMAfbs8tcoo6JdxUjChun5Tlsvb/?mount_node_token=FuvfdXo29oOkZVxFT20uVXbKsKg&amp;mount_point=docx_image" data-width="2874" data-height="1220" data-lark-image-uri="drivetoken://DMAfbs8tcoo6JdxUjChun5Tlsvb" data-lark-image-width="2874" data-lark-image-height="1220" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusxruS4hLPVxEAZyM7kIHlPh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusszfclCJKuLn5eDvgYymZBe"><span style="font-size: 16px;">On the My Lead Trades page, click <strong>Profit Share Stats</strong> to view your total profit share, expected profit share, and profit share ratio. To request a change to your profit share ratio, click the pencil icon.</span></div><div class="ace-line ace-line old-record-id-doxusW721rWKszrzS0DdLeN25ah"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;24312b9c-91d9-4c8b-8565-2c1d19268c0b&quot;,&quot;height&quot;:1376,&quot;width&quot;:2876,&quot;currHeight&quot;:1376,&quot;currWidth&quot;:2876,&quot;natrualHeight&quot;:1376,&quot;natrualWidth&quot;:2876,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FF0x6bZVnbofuIixY8UxuLUfXsec%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;F0x6bZVnbofuIixY8UxuLUfXsec&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:464980,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-WbpXdpUF4oPia1xpYXru65Qrsug"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155512189glUnNcWEZTsxcO.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJSU3dOZHR1c3hvM09XOHhPYk5NdWpnSkJzbmgiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6IjcxODE0Mzg5NDgwMTc3MDA4NjkiLCJhbGlnbiI6ImNlbnRlciIsImltYWdlIjp7InRva2VuIjoiRjB4NmJaVm5ib2Z1SWl4WThVeHVMVWZYc2VjIiwibWltZVR5cGUiOiJpbWFnZS9wbmciLCJzaXplIjo0NjQ5ODAsInNjYWxlIjoxLCJ3aWR0aCI6Mjg3NiwiaGVpZ2h0IjoxMzc2LCJuYW1lIjoiaW1hZ2UucG5nIiwiY3JvcCI6WzAsMCwwLDBdLCJyb3RhdGlvbiI6MCwiY2FwdGlvbiI6eyJ0ZXh0Ijp7ImFwb29sIjp7Im5leHROdW0iOjAsIm51bVRvQXR0cmliIjpudWxsfSwiaW5pdGlhbEF0dHJpYnV0ZWRUZXh0cyI6eyJhdHRyaWJzIjpudWxsLCJ0ZXh0IjpudWxsfX19fSwiYXJlYV9jb21tZW50cyI6bnVsbH0=" data-suite="eyJmaWxlVG9rZW4iOiJGMHg2YlpWbmJvZnVJaXhZOFV4dUxVZlhzZWMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiV2JwWGRwVUY0b1BpYTF4cFlYcnU2NVFyc3VnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9GMHg2YlpWbmJvZnVJaXhZOFV4dUxVZlhzZWMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/F0x6bZVnbofuIixY8UxuLUfXsec/?mount_node_token=WbpXdpUF4oPia1xpYXru65Qrsug&amp;mount_point=docx_image" data-width="2876" data-height="1376" data-lark-image-uri="drivetoken://F0x6bZVnbofuIixY8UxuLUfXsec" data-lark-image-width="2876" data-lark-image-height="1376" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusU39zwKmguHZV1SyLEt1vTg"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-doxusu9lwYyj5Ath9QXWdvpBJ1d"><span style="font-size: 16px;">1.2 App</span></h3><div class="ace-line ace-line old-record-id-doxusIBdkzxzDQ6JWitXRLCV0qg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus84X5C6bFQmhpmSTmFuLUSg"><span style="font-size: 16px;">1) Open and log in to the MEXC App. On the homepage, tap <strong>More</strong> in the quick access section.</span></div><div class="ace-line ace-line old-record-id-KYW8dSe3OoLB38xhahfu6fN5sdN"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFW4SBlbDe1zrqU9gwjdWwb"><span style="font-size: 16px;">2) Under the <strong>Futures</strong> category, tap <strong>Copy Trade</strong>.</span></div><div class="ace-line ace-line old-record-id-IcgRdi3DYo3BilxiQThubMSdsLb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1hWYcQcGiuv45ENOAuks3N"><span style="font-size: 16px;">3) On the Copy Trading page, tap <strong>Lead</strong> <strong>Trade Management</strong>.</span></div><div class="ace-line ace-line old-record-id-RhDrdgYEcoBKj3xnejku9BvbsOb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusw1BYrSr3m13MohaCwuat5g"><span style="font-size: 16px;">4) On the <strong>Lead</strong> <strong>Trade Management</strong> page, tap <strong>Profit Share Stats</strong> to view your total profit share, expected profit share, and profit share ratio. To request a change to your profit share ratio, tap the pencil icon.</span></div><div class="ace-line ace-line old-record-id-doxusmnhscON6Pb0DqmIJZ7GWsc"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;aa101a32-0f8e-4aef-9a4c-cfbe42405368&quot;,&quot;height&quot;:2164,&quot;width&quot;:4175,&quot;currHeight&quot;:2164,&quot;currWidth&quot;:4175,&quot;natrualHeight&quot;:2164,&quot;natrualWidth&quot;:4175,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FLGEWb4rFoobruZxVwh9u5JVXs6d%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;LGEWb4rFoobruZxVwh9u5JVXs6d&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:1526242,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-AvyYdgg5KoGQgvxKSV3uyvA7std"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260611155512050S6awy9oxBxzEIO.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJMR0VXYjRyRm9vYnJ1WnhWd2g5dTVKVlhzNmQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiQXZ5WWRnZzVLb0dRZ3Z4S1NWM3V5dkE3c3RkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9MR0VXYjRyRm9vYnJ1WnhWd2g5dTVKVlhzNmQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/LGEWb4rFoobruZxVwh9u5JVXs6d/?mount_node_token=AvyYdgg5KoGQgvxKSV3uyvA7std&amp;mount_point=docx_image" data-width="4175" data-height="2164" data-lark-image-uri="drivetoken://LGEWb4rFoobruZxVwh9u5JVXs6d" data-lark-image-width="4175" data-lark-image-height="2164" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div class="ace-line ace-line old-record-id-doxusmG0btqTFmHtfN86p8nQd0e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusBxfhdCRwQq5eECOQZL7qDf"><strong>2. Profit Share Overview</strong></h2><div class="ace-line ace-line old-record-id-ZiOCdZulZoaBnDx0FIsutycks2b"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusHJLYi8W5HKz2W6LgHY4ypg"><span style="font-size: 16px;"><strong>Total Profit Share: </strong>Calculated daily at 16:00 (UTC), based on the realized profits from all fully closed copy trade positions over the previous 24 hours. The settlement cycle runs from 16:00 the previous day to 16:00 the current day (UTC). Profit share is only triggered if the follower's total profit during the settlement period is greater than 0. After each settlement, the total profit share is reset to 0.</span></div><div class="ace-line ace-line old-record-id-doxusmOg1hAASKFNHh5K5iFXjpc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxuscvddZCRXtNjlP1JApOqmUd"><span style="font-size: 16px;"><strong>Expected Profit Share: </strong>The total estimated shareable profit since the last settlement, calculated based on the withheld profits from followers. The actual amount distributed will depend on the final settlement result.</span></div><div class="ace-line ace-line old-record-id-doxusFaY9qiPtCpn636kuSZjBml"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusNiPBA8iiXTaxILmYm4Hejf"><span style="font-size: 16px;"><strong>Profit Share Ratio: </strong>The default ratio is 10%. You may apply to change this ratio, with a maximum of one change allowed per day. The result of your application will be communicated via email, SMS, or in-site notification.</span></div><div class="ace-line ace-line old-record-id-doxusgdpktNjeQROBJsHDhO1K3g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusiajcd5MChmUssQuKYvCnyb"><strong>3. Profit Share Calculation</strong></h2><div class="ace-line ace-line old-record-id-doxusFwKkqqkShYcNyiPn8nFWtc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-UWCmd8AHCo9gljx05lJu9ixJsad"><span style="font-size: 16px;">Profit is shared with the trader only when the total realized profit from all fully closed follower positions is greater than 0.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-HyTbdZ65LozEUUxIAIiuZmdjsHh"><span style="font-size: 16px;">Partially closed positions are not eligible for profit share.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-DrDwd0uyjotgWFxD1KPuDImusce"><span style="font-size: 16px;">If a follower has any associated open positions, settlement will be deferred to the next settlement day.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-RCzkdPqbOob8xJxCCJVu5HdTsZc"><span style="font-size: 16px;">If a follower unfollows a trader, profit share will be settled immediately.</span></div><div class="ace-line ace-line old-record-id-doxusZzAwV8tX9wcPsg7YDMMS0c"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxustssXqsNml0Y5tmnzZ0lDIh"><strong style="font-size: 16px;">3.1 Details:</strong></div><div class="ace-line ace-line old-record-id-doxusvE1damdqoR2rcBpfwfG9qg"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusFfTT07g8TYlbSIaNmx4V6g"><span style="font-size: 16px;"><strong>Pre-Freeze: </strong>To secure the trader's earnings, when a follower fully closes a position and the realized profit is greater than 0 (since the last settlement), a portion of the profits is pre-frozen in a system intermediary account based on the profit share ratio.</span></div><div class="ace-line ace-line old-record-id-doxus5dPO3pcMECHe3qZYi1a9Re"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusCn5gSkciXRFyyQiyuTfmqe"><span style="font-size: 16px;"><strong>Actual Settlement: </strong>Profit share is settled daily between 16:00–17:00 (UTC), covering the previous day's results. If the realized profit from all fully closed positions since the last settlement is greater than 0, profit share is processed.</span></div><div class="ace-line ace-line old-record-id-doxusmfNrMlXZkQ41nswV8b4RiT"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusfaOgFnsFnKRwoYu5K8kjVg" data-list="bullet"><div><span style="font-size: 16px;"><strong>Formula: </strong>Trader's Actual Profit Share = Total Realized Profit from All Follower Positions × Profit Share Ratio</span></div></li><li class="ace-line ace-line old-record-id-ZkA2d4ii5obSmcxYw23uHRx1szf" data-list="bullet"><div><span style="font-size: 16px;"> If there are multiple followers, this is calculated individually and then totaled.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxusAIBz1SYweQH99sbqU9NuSb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus0r3yqcGShjgiM8QjNDAFpe"><span style="font-size: 16px;"><strong>Pre-Freeze Refund: </strong>Refund = Pre-Frozen Amount - Trader's Actual Profit Share (Any remaining amount after deducting the trader's share is refunded to the follower's Futures account in USDT-M).</span></div><div class="ace-line ace-line old-record-id-doxusZ6qPORGJNspH3VieE9Z3Wc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusJh3v99KWacfDYMot3Bp6Be"><span style="font-size: 16px;"><strong>Settlement Time: </strong>Profit share is settled daily from 16:00 to 17:00 (UTC). Typically, all settlements are completed by 17:00.</span></div><div class="ace-line ace-line old-record-id-YSSRdWVavoWBhrxsK3JuDWNXsUc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WrOvdxpvtorOwlxRqYJuFRvwsGf"><span style="font-size: 16px;"><strong>3.2 Example of Realized </strong><strong>PNL</strong><strong> Profit Distribution Process for Followers:</strong></span></div><div class="ace-line ace-line old-record-id-YjtVdyQBOorQ4hxIInaumd7BsDb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-UTFUdvNYIoMJVwxxphruN5fispb"><span style="font-size: 16px;">Assume User A follows Trader B with an initial investment of 1,000 USDT. Trader B has a profit-share ratio of 10%.</span></div><div class="ace-line ace-line old-record-id-DV7fd5VIPoj3MUxj1A1uyp8Qsde"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Z9yodFu5eoYStxxaVL6u9rq8sYd"><strong style="font-size: 16px;">Day 1:</strong></div><div class="ace-line ace-line old-record-id-NPnVd5MNzoHbLnxFhcwuQ1c4srg"><span style="font-size: 16px;">User A generates a profit of 200 USDT from copying Trader B's trades. As per the 10% profit-share agreement, 20 USDT is allocated to Trader B. After the profit distribution, User A’s assets amount to 1,180 USDT.</span></div><div class="ace-line ace-line old-record-id-ST9JdTEF3ohmY2x2PoguS0QcsFc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-VO33diLAQoS9oFx4XcSuNUbXs5g"><strong style="font-size: 16px;">Day 2:</strong></div><div class="ace-line ace-line old-record-id-V0QKdQiVSolLyExEsxnuTpaTspv"><span style="font-size: 16px;">The daily loss is 150 USDT. The cumulative PNL since the last profit distribution (after Day 1) is now -150 USDT. As this is negative, no profit share is distributed. User A’s assets drop to 1,030 USDT.</span></div><div class="ace-line ace-line old-record-id-YRFVdd9m5oZMX9xx4kSumkhKsCd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BZANdZcZ2oFJOjxQS8NuOwKjscW"><strong style="font-size: 16px;">Day 3:</strong></div><div class="ace-line ace-line old-record-id-WAaKd8ODtoz1OVxttECutaG6snc"><span style="font-size: 16px;">A profit of 100 USDT is recorded. The cumulative PNL since the last profit-sharing event is now -50 USDT (-150 + 100). As it remains negative, no profit share is distributed. User A’s assets rise to 1,130 USDT, still below the previous benchmark of 1,180 USDT. </span></div><div class="ace-line ace-line old-record-id-Tg1Td8UWioyzsRxlExxu3Scasnd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-CQuFdDFmzokm0cxORQGugXsHsjb"><strong style="font-size: 16px;">Day 4: </strong></div><div class="ace-line ace-line old-record-id-RdCpdkwBjofgDlxNadyuxMXvs0c"><span style="font-size: 16px;">A profit of 100 USDT is again recorded, bringing the cumulative PNL to +50 USDT. Since this figure is now positive, a 10% share, equivalent to 5 USDT, is allocated to Trader B. Before profit sharing, User A’s assets reach 1,230 USDT; after the deduction, the final asset is 1,225 USDT.</span></div><div class="ace-line ace-line old-record-id-T2qMdmWmnoTCMCxUHNduD5NhsKc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-Kg1adgMXlonvDZx2S3Quv8wLsjb"><strong style="font-size: 16px;">Day 5 onwards:</strong></div><div class="ace-line ace-line old-record-id-OBn2daXcJoOchbxlU22uSZ1CsTc"><span style="font-size: 16px;">Profit sharing only applies when User A’s assets exceed the most recent post-distribution benchmark (currently 1,225 USDT), meaning cumulative PNL since the last profit share must be positive.</span></div><div class="ace-line ace-line old-record-id-SLxEdU7ANol24dx3afOuHxBWs8G"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BAIod4VxLoT7SOxBH4DuLxT2sEM"><span style="font-size: 16px;">The profit distribution process is illustrated in the table below: </span></div><div><table class="ace-table" data-ace-table-col-widths="67;100;100;112;100;100;100;123" style="border:none;border-collapse:collapse;table-layout:fixed;width:500px;"><colgroup><col width="67"><col width="100"><col width="100"><col width="112"><col width="100"><col width="100"><col width="100"><col width="123"></colgroup><tbody><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-XEsvdxkm7ovSjyxLhWuuycJqsvd"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-OZipde6pxoawVrxSj85uBParsNf"><span style="font-size: 16px;">Daily Initial Asset </span></div><div style="text-align:center" class="ace-line ace-line old-record-id-Owsqd9qRAonx7pxOkCgufqeasUd"><span style="font-size: 16px;">(USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-B2J6dKnURox1ygxX092u4JeJsPc"><span style="font-size: 16px;">Daily PNL (USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-CgcodOhFsoBCyaxf8mbubx5ksth"><span style="font-size: 16px;">Assets Before Profit Sharing</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-DfyTdG6nhorVHMxCGK3uwZ5dsfe"><span style="font-size: 16px;">(USDT)</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-ZH09dqBxPopuaYxM2jXulrNgs8c"><span style="font-size: 16px;">Net Profit?</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-L3LxdU9GwolJD7xn7gIui5Lqs7e"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-FQMXd2cAWoWRbIx3y4buUG9fsVf"><span style="font-size: 16px;">Cumulative PNL After Profit Distribution</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-PIkKdwf63o7xzDx1HEQu26LMs4f"><span style="font-size: 16px;">(USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-QlXJdUlogocRebxY1aMut68bslb"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Jbp7d2aYPoHMNkxUlzkugygFshh"><span style="font-size: 16px;">10% Profit Share to Trader B</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-BE6HdlJXgoGZ52xSeJ0u7eGYsCg"><span style="font-size: 16px;">(USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-BfMUdARtEogHerxz2Wwu3ecysMc"><span style="font-size: 16px;"><br></span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-G96FduRkKotl75x0qzvuQp1Hsvb"><span style="font-size: 16px;">Assets After Profit Distribution</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-S15Vdl8dfo5b5bxSC3duf6XhsUc"><span style="font-size: 16px;">（USDT)</span></div><div style="text-align:center" class="ace-line ace-line old-record-id-YrqKd18Zroc4W0x0zjNuYBlOsSe"><span style="font-size: 16px;"><br></span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Rfq9dL2NMo6741xRM5dujsk7sjh"><span style="font-size: 16px;">Day 1</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-OVBWd4kvooEx6FxyeH8uU1jysfh"><span style="font-size: 16px;">1,000</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-JGr2dgZYDoVYxaxuvJMug7wPssg"><span style="font-size: 16px;">+200</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-PXFpdHA4UoallvxYzC0u4ddjsHU"><span style="font-size: 16px;">1,200</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-F5QIdZqhPokOdWx7kfEuXytKsEg"><span style="font-size: 16px;">✅</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-HEbVdiuKhoeMCVxco3duby4usDb"><span style="font-size: 16px;">-</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-L8dedxvkNoIQalxszIsuP6fIsHe"><span style="font-size: 16px;">-20</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-ZNVKdzjkpoLCFaxj070uUBvtscc"><span style="font-size: 16px;">1,180</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Z3K3dluJ4oV51Ix6Q5XupPQksVc"><span style="font-size: 16px;">Day 2</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-TI1WdwCinoO8R4xGEt1usCUusYe"><span style="font-size: 16px;">1,180</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-WwdldwOAqoWDkMxvzv0u60dIsUg"><span style="font-size: 16px;">-150</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-McJmd6ytZoJbEaxvt48u5Ga8skf"><span style="font-size: 16px;">1,030</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-Mbn2dFdwHoMYz3xZO3pui47ZsTc"><span style="font-size: 16px;">❌</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-J7JWdsUL7o2H0dxHZxeu7zFhsUd"><span style="font-size: 16px;">-150</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-PtOvd59vAo00kBxXopruZq4Tsjc"><span style="font-size: 16px;">0 </span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-EnytdCQUMoYeOkxZobTut0x9s5e"><span style="font-size: 16px;">1,030</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-SU4udQQU3oX961xj2nquIoXBsog"><span style="font-size: 16px;">Day 3</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-DVT5dvFY1o8Ty2xqhhauFdYrsAf"><span style="font-size: 16px;">1,030</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-QouDdzqXSohEeTxeF5ku2a5dsrd"><span style="font-size: 16px;">+100</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-FU7AdknHyoeidSxNIkGuxaKrsXg"><span style="font-size: 16px;">1,130</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-GSYPdgjIoosrFcxzJ6Hui1wNsMb"><span style="font-size: 16px;">❌</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-BxkUdwwlPoNjVgx6iZMuWjdAsoj"><span style="font-size: 16px;">-50</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-TWzvdv6cmoGnRYxLnbOupArXsRe"><span style="font-size: 16px;">0</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-NCtZdbfRdovvynxUXNPuLN3isRe"><span style="font-size: 16px;">1,130</span></div></td></tr><tr style="height:39px;"><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-HCYodYGd9ozClkxeCz0uEpw3s7P"><span style="font-size: 16px;">Day 4</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-RvQBdRsdxolFRYxbihbuUcJbs0f"><span style="font-size: 16px;">1,130</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-MmrsdVT3zoQNabx8ixVuV8SOsqh"><span style="font-size: 16px;">+100</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-NsuTdsLjqovLKtxXnTyu4MgSsVG"><span style="font-size: 16px;">1,230</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-H9zyd5sGnoay5jxNsr9uUtcisde"><span style="font-size: 16px;">✅</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-EpYtd6NfeoH2owxK1FduXo6NsAc"><span style="font-size: 16px;">+50</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-SFUkdySqeoMJoHxIxVquzXB4sWf"><span style="font-size: 16px;">-5</span></div></td><td colspan="1" rowspan="1" style="border: 1px solid rgb(222, 224, 227); padding: 8px; vertical-align: middle; font-size: 10pt;"><div style="text-align:center" class="ace-line ace-line old-record-id-RN1Jd4RoxozudPxgjNmu7kgtsJd"><span style="font-size: 16px;">1,225</span></div></td></tr></tbody></table></div><div class="ace-line ace-line old-record-id-BR15dJav0ohpMQxoelmuxxhIsjc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-ULV8dQqd7oPlbDxp9LWuILk6sCc"><span style="font-size: 16px;"><strong>Result:</strong> User A's assets = 1,000 (initial capital) + 250 (cumulative realized PNL) – 25 (profit share amount) = 1,225 USDT.</span></div><div class="ace-line ace-line old-record-id-WZAOdUqUrocDm0xIc1Du6UZvsHd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-X06od5qL8ocKGlx5jPsumVzxs9b"><span style="font-size: 16px;">Profit sharing is only triggered when the Follower's assets increase relative to the last profit-sharing settlement. In other words, the cumulative realized PNL since the most recent profit distribution must be positive for a new round of profit sharing to occur. If the Follower’s assets have declined during this period, meaning the cumulative realized PNL is negative, no profit share will be allocated to the trader.</span></div><div class="ace-line ace-line old-record-id-M6UidOm94oZbjsxdnvHuh6mWsdc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-MTG7dSiOYoOAI9xrRDKujYnRsGh"><strong style="font-size: 16px;">Notes:</strong></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-LqxwdyMWYoKFZUxyflAu2m2IsJP" data-list="bullet"><div><span style="font-size: 16px;">The calculations above are for illustrative purposes only. All types of trading-related fees have been excluded.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-C3SCdoiloo3DtFxDsm2u8xoDsre" data-list="bullet"><div><span style="font-size: 16px;">Profit share is settled only if the Follower has no active positions (i.e., fully closed all positions) tied to the Trader at the time of settlement.</span></div></li></ul><div class="ace-line ace-line old-record-id-doxus1cAWthNcI7alo6GFx76ziC"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMPOEEIQxvatoP68a4FiKIg"><strong>4. Expected Profit Share Calculation</strong></h2><div class="ace-line ace-line old-record-id-doxusEPocLIuhSnJjmDlWIuvzrh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1pSqJufrInztrJ7W79UBPb"><span style="font-size: 16px;">Expected Profit Share = Sum of Withheld Profits from Followers</span></div><div class="ace-line ace-line old-record-id-doxusWkub0WsmgAYqN4SSbcEYGb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusEXmwBKFgUujponG7irdZWo"><span style="font-size: 16px;">For traders with multiple followers, the withheld profit from each follower is calculated separately and then totaled.</span></div><div class="ace-line ace-line old-record-id-doxust6bJ7CA8WUl3Xer6ye7TJe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusPI8Bh5ENCHz0Mxpwz3AsRh"><span style="font-size: 16px;">Estimated profit updates every 5 minutes. This is for reference only: the final settled amount may deviate from the estimate.</span></div><div class="ace-line ace-line old-record-id-doxus8pxa6J6KhnRTh9dsSO22gh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus1OyxDVLHm8rESLAVGvFxQd"><strong style="font-size: 16px;">Example:</strong></div><div class="ace-line ace-line old-record-id-doxusdWvAsWUyqoudvHCDU9geWc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxus2ABI5nbvYPRDCV9s5YzFne"><span style="font-size: 16px;">Trader A (profit share ratio: 10%) has one follower, B. On a given day, trader A opens two copy trading positions, and follower B mirrors both. Later, follower B fully closes one position while the other remains open.</span></div><div class="ace-line ace-line old-record-id-doxusJ9287hlKw8B1rTAPtw33oh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-CIEhdltjmouCu5xilT2up15RsGf"><span style="font-size: 16px;">The closed position by follower B has a realized profit of 100 USDT. Withheld profit share = 100 × 10% = 10 USDT</span></div><div class="ace-line ace-line old-record-id-doxus1d6IrTonp1m4Yjx5XSCICe"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusGmiOrPR9dTaLnUQvqUsFRh"><span style="font-size: 16px;">Trader A's Estimated Profit Share = 10 USDT</span></div><div class="ace-line ace-line old-record-id-HKbfdVmCooBDdzxyCGUukIXcsFc"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-ZRTPdIby3oBF5fxjOotufYEWsxg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-TwNnd5lZDojFOlxbcjlu2yw1sCd" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-choose-mexc-copy-trade-traders-273442451564862464" style="font-size: 16px;">How to Choose MEXC Copy Trade Traders</a></div></li><li class="ace-line ace-line old-record-id-UdsedkiTioUaeZx1D2ju4jXSs5P" data-list="bullet"><div><a href="https://www.mexc.com/support/article/mexc-copy-trade-terms-explained-390860380627510272" data-lark-is-custom="true" style="font-size: 16px;">MEXC Copy Trade Terms Explained</a></div></li></ul><div class="ace-line ace-line old-record-id-doxusLcjc6Eeu5wCTMFqbosP9Lg"><br></div></div>

MEXC Futures Funding Rate: Calculation Methods and How to View Funding Rates

<div data-page-id="CXRJd6HiXogr2hxShYAuMU6hs4f" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusYmTRaU7SMSgW47g7672QRf"><strong>1. What Is the Funding Rate?</strong></h2><div class="ace-line ace-line old-record-id-doxuslTK8YR7hSYOnxSc4YCQ0Zd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-TiwYdmKXpok7UqxlsVeuVBZ6sDG"><span style="font-size: 16px;">The<a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list"> funding rate</a> is a key mechanism in the perpetual futures market that helps keep futures prices aligned with spot prices. Through this mechanism, long and short position holders periodically pay fees to each other at a fixed rate. MEXC does not charge any fees for funding payments.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-ITeAdGB3eoKbAyxyxgFuJCL1sUd" data-list="bullet"><div><span style="font-size: 16px;"><strong>Positive </strong><strong>funding rate</strong><strong>:</strong> Long position holders pay funding fees to short position holders</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-AhrGdZ6OcouoMkxiyb4uG9OlsCd" data-list="bullet"><div><span style="font-size: 16px;"><strong>Negative </strong><strong>funding rate</strong><strong>:</strong> Short position holders pay funding fees to long position holders</span></div></li></ul><div class="ace-line ace-line old-record-id-MAfddoNxXofryMxMfOKutrpns0d"><span style="font-size: 16px;">The funding fee is calculated as follows: <strong>Funding Fee = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong></span></div><div class="ace-line ace-line old-record-id-XHsidbTeIo8RhRxsDWbuwkJlsNd"><span style="font-size: 16px;">Note that funding fee deductions may affect your liquidation price and final PNL. Funding settlement times vary by trading pair. Please refer to the information displayed on the official MEXC website for the exact schedule.</span></div><div class="ace-line ace-line old-record-id-doxusZBWXaJfOOzUZVkV8dplOfc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-FzMudN3UFopYlNxbGN5uIamfsHb"><strong>2. Why Do Perpetual Futures Require a Funding Rate Mechanism?</strong></h2><div class="ace-line ace-line old-record-id-doxusGvO4mDvMflMQlpy9JtrWEh"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusVCcf4xdenVMrVUpzPBrAib"><span style="font-size: 16px;">The funding rate exists due to dynamic changes in market supply and demand. When a large number of traders hold positions in the same direction, futures prices may deviate from the underlying spot index price, potentially causing abnormal market fluctuations.</span></div><div class="ace-line ace-line old-record-id-W4Jadwcqpo4F1Mxptgnuhtuts5d"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-At7UdZNaCosMDlxMupouHkGLs2d"><span style="font-size: 16px;">The funding rate mechanism uses economic incentives to guide trader behavior, encouraging futures prices to realign with the underlying asset price. This mechanism effectively prevents excessive price deviations and reduces the risk of market manipulation. For experienced traders, funding rates can also present additional profit opportunities.</span></div><div class="ace-line ace-line old-record-id-doxusu8xg8PjkJHmhZc6WU1Pyxe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-RaBmdjbWYonHA9x0lTquTcxnswg"><strong>3. How to Check the Current Funding Rate on MEXC?</strong></h2><div class="ace-line ace-line old-record-id-doxusTaDVGlmT0mCeXsHKD71Ptb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QSvSdImtsoiASExthTlumvvzscd"><span style="font-size: 16px;">On the MEXC <a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">Futures trading</a> page, you can directly view the current funding rate and the funding countdown for each Futures trading pair. As funding rates differ across trading pairs, simply switch between pairs to check the relevant information.</span></div><div class="ace-line ace-line old-record-id-doxusgnRZtLaCrSXc282Ewx4MDf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusNT5CIattqgrH3sn4YJZXlh"><span style="font-size: 16px;">*BTN-<strong>Open Futures Trading</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/BTC_USDT">https://www.mexc.com/futures/BTC_USDT</a>* </span></div><div class="ace-line ace-line old-record-id-doxus7sfacjOXtXXmt4DBfSEp3g"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;dff50b66-1fb3-4126-b9bc-9e7bc2eae236&quot;,&quot;height&quot;:2259,&quot;width&quot;:5277,&quot;currHeight&quot;:2259,&quot;currWidth&quot;:5277,&quot;natrualHeight&quot;:2259,&quot;natrualWidth&quot;:5277,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXAHZbsME1oVwynxgieJui7IOspd%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;XAHZbsME1oVwynxgieJui7IOspd&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:4151995,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusgDpRC0Ovm1tewa2B8gT9Fg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125529487T6R2KJAUYDN3sC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYQUhaYnNNRTFvVnd5bnhnaWVKdWk3SU9zcGQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNnRHBSQzBPdm0xdGV3YTJCOGdUOUZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YQUhaYnNNRTFvVnd5bnhnaWVKdWk3SU9zcGQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XAHZbsME1oVwynxgieJui7IOspd/?mount_node_token=doxusgDpRC0Ovm1tewa2B8gT9Fg&amp;mount_point=docx_image" data-width="5277" data-height="2259" data-lark-image-uri="drivetoken://XAHZbsME1oVwynxgieJui7IOspd" data-lark-image-width="5277" data-lark-image-height="2259" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusA23gYBdvGrm23lwpsPQPqd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusaqi9bMux7vQUoTnWzGzi5e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Z66SdazVLoPmg2xo3c9uuRpYsHh"><strong>4. Detailed Funding Fee Calculation Methods</strong></h2><div class="ace-line ace-line old-record-id-doxusAtpSgoXdYMUcYYB8YFqbih"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-PjzfddSV0oACvLxREJZuvybxsCf"><span style="font-size: 16px;">MEXC supports two Futures modes, each with a slightly different funding fee calculation method.</span></div><div class="ace-line ace-line old-record-id-doxuspjtdq0UgPlm5KuNCQZYb9c"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-EwL3d0QlbodNpjx1ygZulymWswc"><span style="font-size: 16px;">4.1 Funding Fee Calculation for Stablecoin-Margined Futures </span></h3><div class="ace-line ace-line old-record-id-doxusVuIicVQRb40zzhwBJI3IAc"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-O6DgdJHSEoFIG2xs9f2ubVAIslh"><span style="font-size: 16px;"><strong>Funding Fee</strong><strong> = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong> <strong>Position Value = </strong><strong>Position Size</strong><strong> (</strong><strong>crypto quantity</strong><strong>) × Fair Price</strong></span></div><div class="ace-line ace-line old-record-id-doxusDq0pMbXpPi2BCX4dXLMQkf"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-WSfidrVveozoN2xWGWmu6HBxs0c"><span style="font-size: 16px;">Example: Assume Trader A holds a long position of 10 BTC in BTCUSDT Perpetual Futures. The current fair price is 10,000 USDT, and the funding rate is 0.01%.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-DP0Fd84tpoi9ZHxlQFMuHh2qsyd" data-list="bullet"><div><span style="font-size: 16px;">Position value = 10 × 10,000 = 100,000 USDT</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-XqcmdBeoBoxXX8xkaZxu7JNxstf" data-list="bullet"><div><span style="font-size: 16px;">Funding fee = 100,000 × 0.01% = 10 USDT</span></div></li></ul><div class="ace-line ace-line old-record-id-CnZodKT3ioEAoixXKtPueNj0spC"><span style="font-size: 16px;">Since the funding rate is positive, Trader A (the long position holder) must pay 10 USDT, while short position holders with the same position size will receive 10 USDT.</span></div><div class="ace-line ace-line old-record-id-doxus1diEDMQsShxHsGlohcCV8f"><span style="font-size: 16px;"><br></span></div><h3 class="heading-3 ace-line old-record-id-P3Bqd57XHox8WzxU1VsumPLsswc"><span style="font-size: 16px;">4.2 Coin-Margined Futures Funding Fee Calculation</span></h3><div class="ace-line ace-line old-record-id-doxus5zVV5qgMHhV8r1kemp07Cd"><span style="font-size: 16px;"><br></span></div><div style="white-space:pre;" class="ace-line ace-line old-record-id-SSSfdAsyYoFS9ixofOHufBuTsPe"><span style="font-size: 16px;"><strong>Funding Fee</strong><strong> = </strong><strong>Position Value</strong><strong> × </strong><strong>Funding Rate</strong> <strong>Position Value = </strong><strong>Position Size</strong><strong> (Cont) × </strong><strong>Contract</strong><strong> Value</strong><strong> / Fair Price</strong></span></div><div class="ace-line ace-line old-record-id-doxusUmkWpSALgPitutqZg4xxge"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-XFFkdCRjhoO0ucxP4Tmu5NCAsne"><span style="font-size: 16px;">Example: Assume Trader A holds 100 cont. of BTCUSD long position, with each cont. having a value of $100. The current fair price is 10,000 USDT, and the funding rate is 0.01%.</span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-YHr0d9tuhoqMdixNddduYWmds6c" data-list="bullet"><div><span style="font-size: 16px;">Position value = 100 × 100 / 10,000 = 1 BTC</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-TDfldPQdvo3OthxmHzsuxlJQsOc" data-list="bullet"><div><span style="font-size: 16px;">Funding fee = 1 BTC × 0.01% = 0.0001 BTC</span></div></li></ul><div class="ace-line ace-line old-record-id-FRMPdlkVfoX9MfxzC20u9ceasyb"><span style="font-size: 16px;">Since the funding rate is positive, Trader A must pay 0.0001 BTC, while the corresponding short position holders will receive 0.0001 BTC.</span></div><div class="ace-line ace-line old-record-id-doxusVXpd5jGY2DHOqJxYSK1vBc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-Hf6rdL1rYoLBN4xa59Ju0AsssBf"><strong>5. Funding Settlement Time and Fee Rules</strong></h2><div class="ace-line ace-line old-record-id-doxusSgeRLR7u9ztuAgEcgiYcEg"><br></div><div class="ace-line ace-line old-record-id-WmhLdBm8HoeAZKxT3Qlu01N3sqe"><span style="font-size: 16px;"><div data-page-id="CXRJd6HiXogr2hxShYAuMU6hs4f" data-lark-html-role="root" data-docx-has-block-data="false"><div class="ace-line ace-line old-record-id-MCa8dCjQeo4A9ex0sU7unQoesXc">Funding fees are generally settled every 8 hours, at 00:00, 08:00, and 16:00 (UTC). Only users who hold open positions at the settlement time are required to pay or receive funding fees. Positions closed before the settlement time will not incur any funding fees. The entire process is fully automated, with funding fees directly exchanged between Futures position holders.</div><div class="ace-line ace-line old-record-id-OUNddfg1po6X6Mxx9n4ujdpAsob"><br></div><div class="ace-line ace-line old-record-id-Wvdud9EevoQPxXxsRqzuBUsIs1Z">Please note:</div><div class="ace-line ace-line old-record-id-KA7ldmJTjoNtSZxep8LunHkbsqp">1. Funding fee settlement may be delayed by up to 15 seconds due to batch processing. Positions opened shortly after the settlement time, such as 08:00:05 (UTC), may still be included in the current settlement, whether the trader pays or receives the fee.</div><div class="ace-line ace-line old-record-id-N54kd291poDdMzxpmTIuRJPBsUh">2. Funding fee settlement times may vary by Futures trading pair. Please refer to the product page for details.</div></div></span></div><div class="ace-line ace-line old-record-id-doxusbQcD0YIs2YrJ0zFpJZqv8c"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxus7pgcc10zKg1LUnhwohUpMf"><span style="font-size: 16px;">*BTN-<strong>View Funding Rates</strong>&amp;BTNURL=<a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list">https://www.mexc.com/futures/information/funding_list</a>* </span></div><div class="ace-line ace-line old-record-id-doxusnx5QI31F2FURUXktnXG9Sg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-CDEvdPTaloPCnwxr5FauTMpvsMc"><strong>6. How to Check Paid or Received Funding Fee Records?</strong></h2><div class="ace-line ace-line old-record-id-doxusrGqmNal4n2dCSs7fFI4a4f"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-QHQQdQe09o4vgSxe0WduJ8OQsbf"><span style="font-size: 16px;"><strong>Web: </strong>Go to the<strong><a data-lark-is-custom="true" href="https://www.mexc.com/futures/orders/contract?type=funding">Orders</a></strong> page and select <strong>Funding Fees</strong> to view detailed records.</span></div><div class="ace-line ace-line old-record-id-doxus1uSZpqNfhf3NmUdulJaCth"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;086f11d0-e490-4fce-97df-83463eb14132&quot;,&quot;height&quot;:808,&quot;width&quot;:2938,&quot;currHeight&quot;:808,&quot;currWidth&quot;:2938,&quot;natrualHeight&quot;:808,&quot;natrualWidth&quot;:2938,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FR2AebnoT4ovATKx6KnlunWPvsRg%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;R2AebnoT4ovATKx6KnlunWPvsRg&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:227687,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusSz0KXi8GcrJkwAOWgznVhu"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125523868JLt0i36E1jaWLt.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJSMkFlYm5vVDRvdkFUS3g2S25sdW5XUHZzUmciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNTejBLWGk4R2NySmt3QU9XZ3puVmh1Iiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9SMkFlYm5vVDRvdkFUS3g2S25sdW5XUHZzUmcvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/R2AebnoT4ovATKx6KnlunWPvsRg/?mount_node_token=doxusSz0KXi8GcrJkwAOWgznVhu&amp;mount_point=docx_image" data-width="2938" data-height="808" data-lark-image-uri="drivetoken://R2AebnoT4ovATKx6KnlunWPvsRg" data-lark-image-width="2938" data-lark-image-height="808" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusLWOdkEOU07iLwJ9BN3JqDc"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-JMBHdoGrCofYwfxY7jrupN3lsRc"><span style="font-size: 16px;"><strong>App: </strong>Tap <strong>Profile Icon</strong> → <strong>Transactions</strong> → <strong>Futures Orders</strong> → <strong>Capital Flow</strong>, then use <strong>Filter</strong> to select <strong>Funding Fee</strong>and tap <strong>Confirm</strong> to view the records.</span></div><div class="ace-line ace-line old-record-id-doxustzILzJISXWVdRR8hYSKmYf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;95cf3a53-ce54-4336-8f1c-068eb7cced7e&quot;,&quot;height&quot;:2160,&quot;width&quot;:4173,&quot;currHeight&quot;:2160,&quot;currWidth&quot;:4173,&quot;natrualHeight&quot;:2160,&quot;natrualWidth&quot;:4173,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FUGSxbuTGuoFTFxxJSVQuoAoxsAh%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;UGSxbuTGuoFTFxxJSVQuoAoxsAh&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:2235491,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusHzB8309sCwv9dNSzjNSvvf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125528599aENITioW947SUC.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJVR1N4YnVUR3VvRlRGeHhKU1ZRdW9Bb3hzQWgiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNIekI4MzA5c0N3djlkTlN6ak5TdnZmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9VR1N4YnVUR3VvRlRGeHhKU1ZRdW9Bb3hzQWgvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/UGSxbuTGuoFTFxxJSVQuoAoxsAh/?mount_node_token=doxusHzB8309sCwv9dNSzjNSvvf&amp;mount_point=docx_image" data-width="4173" data-height="2160" data-lark-image-uri="drivetoken://UGSxbuTGuoFTFxxJSVQuoAoxsAh" data-lark-image-width="4173" data-lark-image-height="2160" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusK4fjJ0OgldZBzbyjO5TlBd"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-doxusi6MZOn4Y9QYjZb136F53Ag"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-QLNLdN35qozUtJx9GuCuwYeEsyh"><strong>7. How to View Historical Funding Rate Data?</strong></h2><div class="ace-line ace-line old-record-id-doxustlJ7DlQsKvqVgYgvwZkHsb"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-BDUsdbip6oXkizxhdzguYk77sRb"><span style="font-size: 16px;"><strong>Web: </strong>Visit the MEXC<strong><a data-lark-is-custom="true" href="https://www.mexc.com/futures/information/funding_list">Funding Rate History</a></strong> page to view complete historical data.</span></div><div class="ace-line ace-line old-record-id-RZhEdgTJNokBTdx0Wp2umNGEs4e"><span style="font-size: 16px;"><br></span></div><div class="ace-line ace-line old-record-id-H4goduyjEo77d7xLGw5uptgEsdg"><span style="font-size: 16px;"><strong>App: </strong>From the app homepage, enter <strong>Futures</strong>, tap the <strong>Funding/Countdown</strong> section, then select <strong>View </strong><strong>funding rate</strong><strong> history</strong> to access historical funding data.</span></div><div class="ace-line ace-line old-record-id-doxusfqAV2ZMepxQfRNORVOHZTb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" data-type="image" data-ace-gallery-json="{&quot;items&quot;:[{&quot;uuid&quot;:&quot;56c2a5c7-cded-44b5-b3f8-279d02c7cdae&quot;,&quot;height&quot;:2163,&quot;width&quot;:4173,&quot;currHeight&quot;:2163,&quot;currWidth&quot;:4173,&quot;natrualHeight&quot;:2163,&quot;natrualWidth&quot;:4173,&quot;pluginName&quot;:&quot;imageUpload&quot;,&quot;scale&quot;:1,&quot;src&quot;:&quot;https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FGkaLbTwgoo43Pcx79PJuNmfysgc%2F%3Fpreview_type%3D16&quot;,&quot;file_token&quot;:&quot;GkaLbTwgoo43Pcx79PJuNmfysgc&quot;,&quot;image_type&quot;:&quot;image/png&quot;,&quot;size&quot;:2489218,&quot;comments&quot;:[]}]}" class="image-uploaded gallery old-record-id-doxusfObgqx8NHCFJxToedmq2be"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20260216125529599phyritCcWEZAud.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJHa2FMYlR3Z29vNDNQY3g3OVBKdU5tZnlzZ2MiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94dXNmT2JncXg4TkhDRkp4VG9lZG1xMmJlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Ha2FMYlR3Z29vNDNQY3g3OVBKdU5tZnlzZ2MvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/GkaLbTwgoo43Pcx79PJuNmfysgc/?mount_node_token=doxusfObgqx8NHCFJxToedmq2be&amp;mount_point=docx_image" data-width="4173" data-height="2163" data-lark-image-uri="drivetoken://GkaLbTwgoo43Pcx79PJuNmfysgc" data-lark-image-width="4173" data-lark-image-height="2163" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px; width: 750px;"></div><div class="ace-line ace-line old-record-id-doxusPM9TErHhqg5AjdOkAfLESd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-YoyQdbs0AoPZ3xxzi6WuGWewsMb"><span style="font-size: 16px;">Recommended Reading:</span></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-YPSjdtthgoSmvtxDnMOuikt6smf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/futures-trading-faq-305425827477864448">Futures Trading FAQ: A Complete Beginner's Guide</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-OdR0di5iwoDylZxLXoEuRjw7sXf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-the-mexc-app-305421274812529664">How to Trade Futures on the MEXC App</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-OXbAd8r12obgHyxGBfquw2zVs6b" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/how-to-trade-futures-on-mexc-web-305423980641926144">How to Trade Futures on MEXC Web</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-J728dp5edouxUIxX01zujrrWsVh" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/time-in-force-tif-for-futures-trading-305427906242034688">Time in Force (TIF) for Futures Trading: A Complete Guide</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-CO2ddZTT9orF1wxngpjujX1Msrd" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/faq-on-auto-deleveraging-adl-8127010829081">FAQ on Auto-Deleveraging (ADL)</a></span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-FX2CdaleVoYUgkxX7aCu5xy5sMf" data-list="bullet"><div><span style="font-size: 16px;"><a href="https://www.mexc.com/support/article/faq-on-index-price-fair-price-and-last-price-7950960183961">FAQ on Index Price, Fair Price, and Last Price</a></span></div></li></ul></div>

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