You can now try out futures trading at the secure exchange MEXC. Futures trading is a type of derivatives trading, and when trading futures, you need to deposit margin, which allows you to use leverage. While using leverage can bring about large returns, it is also possible to lose the entire amount, so be careful.
What is futures trading in virtual currency?
A futures contract is a contract that promises to buy or sell in the future. Buy and sell when the specified date in the future comes. If the price of the currency is favorable by the specified date, it will be profitable, and if it is unfavorable, it will be a loss. To put it simply, it is a matter of predicting the future of the market and whether it will hit or miss. If things go well, your crypto assets will continue to increase. However, there is a risk that the stock will crash if you buy it. It will be an information battle while checking the market price.
merit
Futures trading allows you to decide the buying and selling price in advance, so you can avoid the risk of price fluctuations. Another advantage is that you can trade with small amounts, so you can avoid big losses in advance. You can also use leverage in this transaction, so you can suddenly increase your amount from a small amount. This is the same as gold and FX.
Demerit
Futures trading allows you to use leverage, but on the other hand, there is also the risk of large losses. Although there is an advantage that the more leverage you use, the more money you can make, there is also the possibility that you will make a big loss and lose all your money. In the case of futures on the exchange, you can use bonuses and trade commodity stocks dynamically, but depending on the method and type, you may lose assets.
MEXC Global Types of futures contracts
There are two types of futures trading on MEXC: “USDT-M” and “COIN-M”. USTD-M currency pairs handle 200 types of pairs, including BTC / USDT and ETH / USDT. Coin-M’s currency pairs are few and only 6 types.
| Payment currency | currency pair | |
| USDT-M | USDT | 200 |
| COIN-M | BTC /ETH /XRP /ATOM /ETC /CHZ | 6 |
USDT-M
The base currency of USDT-M is USDT. Trade by depositing USDT as margin. Because it supports so many currencies, over 200 types, it is used in many transactions.
Coin-M
Coin-M’s base currency is USD. Because the price fluctuations of the base currency are large, it is easier to aim for large profits compared to USDT-M. However, since there are only 6 supported currencies, transactions are very limited.
MEXC Global How to order
There are four types of order methods for futures trading: You can also apply for and utilize bonuses obtained from MEXC benefits while trading. Please contact customer service and ask about available campaigns. At MEXC, there are many business announcements such as corporate services, and there is a lot of media exposure (blogs, SNS), so there is a lot of information.
limit order
It is a method of placing an order at a predetermined price.
BBO
An abbreviation for Best Bid Offer, this is an ordering method in which only the quantity is specified.
trioger market
This is a method of placing a market order when a specified rate is reached.
trigger limit
This is a method of placing a limit order when a specified rate is reached.
MEXC Global transaction fee
The transaction fee (margin) for MEXC contracts and transactions (purchase, sale) is a flat 0.2%. This is now also specified in the Terms of Use. Data may be updated from time to time as details may be adjusted. Check the official website. If you are unsure, you can also submit a question to the center.
MEXC Global leverage
The maximum leverage for perpetual futures trading on exchanges is 200x, but it varies depending on the currency pair and type of commodity. Please refer to the list of futures products by brand and type. It will also be helpful for API verification.
| BTCUSDT | 200 |
| ETHUSDT | 200 |
| SHIBUSDT | 200 |
| DOGEUSDT | 200 |
| XRPUSDT | 200 |
| BTCUSD | 125 |
| ETHUSD | 100 |
MEXC Global funding fee
Futures trading incurs funding fees at the exchange. At MEXC, funding fees will be charged for each product brand and type every 8 hours (3 times a day). Payments and receipts occur depending on market movements and positions held.
- UTC 00:00
- UTC 08:00
- UTC 08:00
MEXC Global Transaction system
As for spot trading, please first open an account. Please refer to the article below. MEXC has many events, and the official page has various support guide functions such as VIP service, introducing new friends, trading listed coins, hedging mode, community participation, and educational programs to understand and learn. You can also trade on the app, making it easy to trade. We have many profitable clients. You can also open a corporate account.
To do this, log in, select “Futures Trading” from the top menu, and select “USDT-M” or “COIN-M”. For exchange futures, leverage differs depending on the type of product or issue.
Transit to chart screen. To do this, first select the type of commodity and currency pair for futures from the red frame in the upper left. The exchange handles more than 1,500 currencies and brands, so you won’t have to worry about choosing a product.
The right side of the screen will be the futures order screen. Select and enter the leverage, order method, price, quantity, profit take/loss cut option on the order screen for the product symbol, and finally click “Short, Long”. Your order is now confirmed. Trading of the stock has started.
When you place an order, you can see the trading status of the futures symbol at the bottom of the screen. Currency pairs currently being traded displayed on this screen can also be settled manually from “Action”. You can check whether you own futures stocks. Although this has not happened before, if you are unable to pay for a product or find an error, you will need to make a suggestion to customer service and have them work with you to resolve the issue.
MEXC Global Points to note when trading futures
Unlike spot trading, please note the following points when trading futures stocks. Regardless of the type of futures product, bonuses can be used as margin. Please be careful, especially if you came through an affiliated link or invitation from a friend, as you may not know much about it yet. MEXC also allows you to download transaction history, which can be used for tax and accounting reports. The service is improving every day.
Loss cut setting
Futures trading can be leveraged, but if the trade continues to go against the grain, the unrealized losses will get bigger and bigger, and eventually you will go bankrupt. The most important thing to do is to set a stop loss. Please think carefully about where you will cut your losses, withdraw, and take profits. If this becomes vague, it will drag you on forever.
Don’t increase leverage too much
Futures trading allows you to increase leverage, but the virtual currency market is also famous for its extremely volatile ups and downs. If the price fluctuates rapidly due to wild fluctuations, the higher the leverage, the higher the possibility of a loss cut. Especially for beginners, it is very important to keep the leverage setting low, so please be careful.
unbearable
When setting leverage in futures stocks, it is better not to tolerate waste. Especially when you are defeated, even if you put in additional funds, the situation continues to go backwards, and in most cases you end up going bankrupt. Therefore, it is important to decide where to cut your losses before trading the product in the first place.
Pay attention to margin maintenance rate
For MEXC futures, if the margin maintenance rate of a stock falls below 100%, the product position will automatically become a loss cut. If the margin maintenance rate approaches 100%, it is better to cut your losses as much as possible regardless of the type. In the case of futures stocks, we do not recommend adding funds blindly unless you are extremely confident.
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