Futures are a way to trade cryptocurrencies without actually owning assets on the MEXC exchange. In this guide from MCrypto, you will learn about MEXC future trading in the most detailed way
Overview of the Future trading interface on the MEXC website
Basic information about the MEXC exchange
MEXC Global is a reputable cryptocurrency trading platform. Serving more than 6 million users in 70 countries around the world. In addition to providing Spot, Margin, and Perpetual Future trading services, MEXC also introduced MEXC Launchpad, a product that supports blockchain projects listing new tokens.
Along with MEXC Kickstarter, MEXC future trading is one of the popular products of this platform. Allows users to predict future prices of cryptocurrencies to make profits.
Before starting to trade, users need to have an account that has completed the KYC information verification process on MEXC. The process of creating an account, verifying it, or how to delete MEXC account is similar to other popular cryptocurrency exchanges. Therefore, in this article, we will only guide MEXC future trading for readers.
The future interface on MEXC exchange
To get started, go to MEXC’s main page and select “Derivatives”, then click “Future” to open the futures trading page.
The Future page not only displays information about the asset (1) but also includes the price chart of the trading pair you choose (2). You can switch between basic and advanced views by clicking the settings icon (3) in the upper right corner of the screen.
Additionally, you can change the trading pair by clicking on the trading pair icon in the upper left corner of the screen (4). Information about your positions and orders is displayed at the bottom of the screen (5).
The order book (6) provides detailed information about whether other investors are buying or selling that asset. The market transactions section (7) displays information about recently completed transactions. Finally, you can place orders in the right corner of the screen (8).
>>See more: Trade efficiently and securely with MEXC Futures
USDT Contract and Coin-Margined Contract MEXC
USDT contracts are perpetual contracts settled in USDT, a stable cryptocurrency. In contrast, coin-margined contracts are perpetual contracts with value, settled in different cryptocurrencies. On MEXC, users can choose between USDT or coin-margined contracts from available trading pairs.
MEXC future trading details from A to Z
MEXC future trading
Step 1: To start MEXC future trading. First of all, you need to choose the cryptocurrency pair you want to trade. In this guide, we will use the BTC/USDT pair as an example.
Step 2: Then, you need to transfer assets from the spot trading account to the futures account.
In the order section, click “Transfer” and enter the amount of assets you want to transfer from the Spot account to the Future account. Once entered, click “Confirm” to confirm the transaction.
Step 3: In the order placement section, you need to enter the following information: Leverage (1), trade order type (2), amount you want to trade (3), along with stop loss and exit point word.
Once you have filled in all the information, if you predict the price will increase, select “Buy/Long”. On the contrary, if you predict the price will decrease, select “Sell/Short”.
>>See more: MEXC register on mobile phones is the most detailed
How to use the MCrypto platform leverage
You can use different levels of leverage depending on the trading pairs. MEXC supports maximum leverage up to 125X. Your maximum leverage depends on the amount of funds you use initially and the funds you keep in reserve. Therefore, it is important to determine the amount of money needed to open an initial position and the amount to maintain the position.
You can also adjust the leverage for both your Buy/Long and Sell/Short positions by clicking “Isolated.100X” for Buy/Long positions or “Isolated.20X” for Sell/Short positions.
Instructions for converting MEXC deposit mode
To meet the diverse needs of traders with different strategies. MEXC offers two margin modes: Cross Margin and Isolated Margin.
Cross Margin
Cross Margin, also known as cross margin, is a margin borrowing method in financial investment. According to this method, all capital and profits from transactions are deposited into accounts. Helps avoid sudden liquidation. However, if liquidation occurs. The entire balance in the escrow participant’s account will be lost. This creates significant risks for investors.
The advantages of this method include that the entire invested capital can be used to margin a specific position and can be converted to other positions. Additionally, the available balance can be transferred to other accounts. This method is suitable when the stock market is highly volatile, helping to avoid the risk of loss.
However, there are also disadvantages. The amount deposited under the Cross Margin method is not adjusted. This can increase the risk when liquidating the portfolio. Especially when the stock market shows signs of decline. In addition, any change in position can affect all remaining positions. Increases risks during the transaction process.
Isolated Margin
In Isolated Margin mode, you simply specify a specific margin amount for each position when placing an order. Limit the maximum loss to the initial margin.
When there is a liquidation request, you only lose the margin of that position. Does not affect other open positions. This mode also allows you to optimize leverage through the leverage slider.
By default, all traders start in Isolated Margin mode. An interesting point is that MEXC allows users to easily convert from Isolated Margin to Cross Margin with just a few simple steps.
To convert from Isolated Margin to Cross Margin, in the order section, select “Isolated.1X”. Green for Buy/Long orders and red for Sell/Short orders (1). Next, click “Cross” (2) to switch to Cross Margin mode.
Epilogue
Futures trading is often considered a field for professional investors. This is a quite complicated form of trading, requiring you to clearly understand the indicators. Use technical analysis and apply a reasonable capital management strategy to potentially profit from this transaction. Through the above article from MCrypto, I hope you have learned the basic concepts. From there, you can grasp MEXC future trading confidently and effectively.
FAQ
How to choose a cryptocurrency pair for Future trading on MEXC?
First, you need to log in to your account on MEXC. Then, visit the Future trading page and select a cryptocurrency pair you want to trade. You can choose this trading pair based on your research and predictions about the cryptocurrency market or according to your investment strategy.
How to set parameters such as leverage and stop loss?
In the MEXC future trading page, you will see items such as leverage, order type, trade amount, stop loss, and take profit points. You can enter values for these depending on your trading strategy. Leverage is an important tool to maximize profits. But it also comes with high risks, so consider carefully when setting the leverage value.
How to switch from Isolated Margin mode to Cross Margin mode?
To switch from Isolated Margin mode to Cross Margin mode. You need to go to the order placement section and click on the “Isolated.1X” option. Green for Buy/Long orders and red for Sell/Short orders. Then, click “Cross” to switch to Cross Margin mode. Make sure you understand both modes clearly. Choose the method that suits your trading strategy.
