You may not know, that in the traditional financial platform and centralized MEXC cryptocurrency exchange, MEXC Futures trading accounts for a significant market share. At that time, perpetual Futures contracts quickly rose and became one of the popular investment methods for cryptocurrency traders. So what makes futures contracts so popular? Let’s find out the answer with MCrypto.

Introduction to MEXC Futures Trading

MEXC Futures trading plays an extremely important role in helping traders increase capital and prevent risks. However, new investors will find it difficult to understand the operations of Futures contracts. The information below will provide you with useful information about what MEXC Futures is.

What is a Futures trading contract?

MEXC Futures trading contract is a type of derivative contract. Requires buyers and sellers to complete the property transaction on a fixed date and rate agreed upon in the contract. Regardless of the current asset price, transactions must be completed.

When trading MEXC Futures, you can apply to any type of physical commodity or financial instrument. Provided that the full amount of insured assets is listed in the contract. It is also seen as a type of insurance for users against risks when the market bottoms out. Thanks to that, transactions will be protected from the consequences of price fluctuations.

Explaining terms related to Futures on the MEXC exchange

For beginner traders, operations on MEXC Futures may be more complicated than Spot. Because it depends a lot on technical terms. But now you don’t need to worry because we have compiled and explained common terms, helping you be more confident when trading on Futures:

• Perpetual Futures: Also known as perpetual Futures contracts. Developed from traditional financial Futures contracts. The biggest difference with this type of contract is that there is no settlement date, as long as the position is not closed.
• Initial Margin: The minimum deposit required to open a position.
• Futures Volume: Represents the value of a Futures (USDT-M measured in Tokens; Coin-M Futures measured in USD).
• Risk limit: Use a risk limit mechanism with a tiered margin model to help users manage risk.
• Funding Rate: The funding rate is based on the price difference between the Spot market price and perpetual Futures.
• Unrealized PNL: Long/Short position PNL displays before closing the position.

• Long: Quantity (Cont) x Futures Volume (Cont) x (Fair price – Order entry price)
• Short: Quantity (Cont) x Futures Volume (Cont) x (Order price – Fair price)

• PNL: The PNL of the Long/Short position is displayed after the position is closed

• Long: Quantity (cont) x Futures Volume (Cont) x (Average closing price – Order entry price)
• Short: Quantity (cont) x Futures Volume (Cont) x (Order entry price – Average closing price)

Distinguishing between types of Futures contracts on the MEXC exchange

Currently, on MEXC Futures, there are 2 types of Futures contracts with 2 different modes.

The difference between one-way mode and hedging mode on Futures

Below is a table comparing the difference between one-way mode and hedge mode on MEXC Futures :

Difference between MEXC Futures USDT-M and Coin-M

Table comparing the differences between MEXC Futures USDT-M and Coin-M contract types:

Advantages of trading MEXC Futures

Whether before or now, MEXC Futures has always created a great attraction for cryptocurrency traders. The advantages it brings help traders to create transactions with the greatest efficiency such as:

• Leverage: Futures contracts provide leverage allowing users to gain significant profits compared to the capital invested. Because it operates on a margin basis, it means you only need to deposit a small deposit to meet the conditions of opening a position. That also helps reduce risks for investors in the investment process.
• Trading strategies: On MEXC Futures, traders can apply a variety of strategies to get the best profits. Including Grid trading strategies, short selling, arbitrage…
• Maker fee is “0”: When the Maker fee is “0”, the Maker will be the one to place limit orders and wait for order matching. From there, you can use orders to manage your capital wisely to avoid unnecessary losses.
• Risk prevention: In MEXC Futures there is a hedging mode, allowing users to hold both long and short positions. To help you achieve a balanced PNL for total assets.
• Providing customized margin modes for both USDT-M and Coin-M pairs helps control risks more easily.

Why should traders choose to trade MEXC Futures?

Trading with MEXC Futures generates high profits that have attracted the attention of countless investors. So what is the inner reason that makes traders so successful?

MCrypto fees are the lowest in the market

Because transaction fees on MEXC are considered to be the lowest in the cryptocurrency market. In which the Maker fee rate is 0.000% and the Taker fee rate is 0.010%. In addition, MEXC Futures also allows users to deposit MX into their Futures account to compensate for Taker fees.

Furthermore, MEXC’s Spot transaction fees are also always the lowest in the market. With Maker and Taker fee rates both being 0%. To know more about the fee information of the MEXC exchange, you can refer to the platform’s official homepage.

Great trading depth

For more than 5 years of operation, MEXC Exchange has always been a leader in developing and listing high-quality projects. Becoming the top choice of millions of customers from 170 countries and regions around the world. With such a large platform, MEXC has brought stable trading depth, a balanced order book, and transparent pricing. Ensuring users can trade seamlessly even under the most restrictive conditions.

MEXC Futures has high security and stability

Besides, the MEXC Futures trading system has a multi-layer and multi-cluster architecture. All are developed by experts with leading specialized knowledge of banking technology. Increase processing capacity up to 1.4 million transactions per second, creating breakthrough efficiency and performance.

In addition, customers can feel secure when trading on the MEXC exchange. Because you will enjoy the benefits of modern security measures. Including KYC identity verification, 2FA, and anti-fraud code… Ensuring the security and integrity of user data.

Flexible trading rules

In particular, MEXC Futures ‘ trading rules are also extremely flexible. The system allows users to freely adjust leverage from 1-200x. Or choose from a variety of 3 types of orders: Limit orders, market orders, and Stop-Limit orders… and also Cross as margin and Isolated Margin modes.

Instructions on how to play MEXC Futures from AZ

To be able to understand the rules and how to play Future on MEXC effectively. First of all, you need to get familiar with the Futures interface on the platform.

Get acquainted with the Futures interface on MEXC

The interface of the Futures homepage contains a lot of data related to asset types. All will be divided into 8 main parts, which we will list in detail below.

(1) Information and data about Futures asset types.

(2) Price charts of the trading pair you have selected.

(3) Where to switch basic and advanced views.

(4) Change the trading pair at the trading pair icon.

(5) Information about your positions and orders will be displayed at the bottom of the screen.

(6) Order number

(7) Information about recently completed transactions

(8) Place to place orders in the right corner of the screen.

>>See more: MEXC register on mobile phones is the most detailed

How to play Future on MEXC in detail

After getting familiar with the interface layout of the MEXC Futures platform, how do I start trading? You can read and follow the instructions on how to play Future on MEXC as follows:

• Step 1: Choose a crypto asset pair to start trading

• Step 2: Transfer spot assets to the Futures MEXC contract account

In the order placement section, select the icon with 2 arrows in opposite directions. Then fill in the amount of assets needed to transfer from the Sopt account to Futures => Click “Transfer funds” and complete.

• Step 3: Place MEXC Futures order

Take turns filling in the order information such as Leverage, order type, quantity… Start predicting price fluctuations and closing the order “Buy/Long” or “Sell/Short”

Instructions for converting margin mode on MEXC Futures

To serve traders by many different strategies, the MEXC exchange has provided 2 margin modes: Cross Margin and Isolate Margin. Here is a very simple way to switch deposit mode.

• For Cross Margin: This is a mode that allows positions to use all available balances in the account to avoid liquidation. If liquidation occurs, you will lose all your capital and open positions.
• For Isolated Margin: This is a mode where only one position can be used for open positions. You can optimize leverage with the slider or change to Cross Margin mode with just a few simple steps.

How to use MEXC Futures leverage

On MEXC Futures, you can use different leverage levels for different trading pairs. Your leverage level depends on the initial deposit and maintenance margin, they can be up to 125x. To change the leverage for a position, you can click “Isolated.100x” in Buy/Long positions or “Isolated.20x” in Sell/Short positions.

Tips for playing MEXC Futures effectively

As said, MEXC Futures will certainly cause many difficulties for new traders. However, the above problem will be overcome when you remember and apply extremely effective Futures playing tips, including:

• Determine your trading strategy and strictly follow it. That will help you reduce losses from risks and improve your chances of success.
• Make optimal use of risk management tools to set profit and loss limits. Ensure to minimize loss of investment capital.
• Diligently follow news and update important events related to the cryptocurrency market. To be flexible in creating potential trading opportunities on MEXC Futures.
• Apply technical analysis tools: charts, indicators… before making trading decisions.
• Be mentally stable, do not be distracted by emotions, and always maintain a steadfast spirit.
• Always learn and absorb new knowledge from world Crypto experts.
• Carefully research the market and MEXC Coins. Because it is the deciding factor in your success when making transactions.

So what is MEXC Coin and why does it play such an important role? You can continue to learn from the information mentioned below.

Some information about MEXC Coin

What is the MEXC exchange coin?

MEXC Coin is also known as MX Token. Traders who hold MX Tokens can use them to trade and receive commissions from the difference in selling and buying prices of that Token. Or you can use them to exercise your right to vote on team decisions or pay transaction fees and many other benefits.

Types of Coins available on the MEXC exchange

Currently, more than 100 million MX Tokens are being issued on the MEXC Exchange. Of which 40% of quarterly profits will be used to buy back from the market and burn MX Tokens to maintain supply. The amount of MEXC exchange coins will be stored according to the ratio:

• 14% of total MX Tokens are reserved for the founding team on MEXC
• 51% of the total MX Token for users to freely mine when trading
• 20% of total MX Tokens circulating in the financial market
• 15% of total MX Tokens for the team

Simple instructions on how to buy Coin on MEXC

To add Coins to your account, you can buy Coins on MEXC according to the following simple instructions:

• Step 1: Create a MEXC account

To buy coins or trade MEXC Futures, each user is required to own an account on the MEXC exchange. You can refer to the article on instructions for opening a MEXC account on our Blog.

• Step 2: Deposit money into your MEXC account

Access the “Assets” section => Select “Deposit” and follow the instructions on the system to deposit money into your account.

• Step 3: Buy Coin into the MEXC account

First, you need to go to “Buy Crypto” => and then select “P2P Trading” => Click “Buy”. The system will then display a list of asset types for you to choose from. Continue to enter the amount used to buy the Coin and proceed to payment. Finally, click “Buy” to complete the MEXC Coin purchase order.

>>See more: What is MEXC Coin and what traders need to know

Summary

So through the above article, MCrypto has provided all knowledge related to MEXC Futures for readers. However, transactions are risky, so the contents should only be for reference. Therefore, investment decisions are still based on your goals, situation, risk tolerance level, and decisions.

FAQ

What types of futures contracts do MEXC Futures support?

MEXC supports many types of contracts including BTC/USDT, ETH/USDT… and many other coins.

What are the trading fees on MEXC Futures?

For regular users, Futures trading fees will be 0.00% for Maker and 0.01% for Taker.

Why should traders choose MEXC Futures?

Because Futures trading brings them many benefits. Futures are financial derivatives used for risk management and hedging to minimize losses and improve trading efficiency.