MEXC provides traders with flexible options. Users can choose between U-based or Coin-M perpetual futures according to their personal preferences. At the same time, MEXC supports one-way and two-wayMEXC provides traders with flexible options. Users can choose between U-based or Coin-M perpetual futures according to their personal preferences. At the same time, MEXC supports one-way and two-way
Learn/Trading Guide/Futures/Fully understand the MEXC perpetual futures trading model to help you better formulate trading strategies
Fully understand the MEXC perpetual futures trading model to help you better formulate trading strategies
MEXC provides traders with flexible options. Users can choose between U-based or Coin-M perpetual futures according to their personal preferences. At the same time, MEXC supports one-way and two-way positions, allowing traders to execute trading strategies more accurately in the ups and downs of the market. Most importantly, the margin mode can be flexibly set and the leverage size can be adjusted. These convenient features make MEXC an ideal choice to meet the needs of various traders, making it easier to develop their own trading strategies and improve their trading success rate when trading perpetual futures.
Abstract of this article:
MEXC has launched USDT-M, USDC-M and Coin-M perpetual futures, providing users with over 1500 perpetual futures trading pairs. Not only is it ahead of competitors in terms of multi-speed trading of futures, but it also has unique advantages in trading fee rate , trading depth, operation experience and other aspects, which have been well received by users.
Unidirectional position holding and isolated margin mode are simpler to operate, more suitable for novice users with insufficient futures trading experience, and can help users open positions more intuitively and control risks.
The functions of the two-way position and cross margin mode are more powerful, suitable for users with rich futures trading experience, who can flexibly hold positioning and hedging risks according to the development trend of the trading target price. However, it should be reminded that users must use the take profit and stop loss function provided by MEXC reasonably to effectively control the potential loss risk.
What is MEXC futures trading?
Cryptocurrency futures trading is a trading method that uses leverage and derivative tools to conduct long and short operations on market price fluctuations. It is commonly used to hedging potential price fluctuation risks in spot trading. MEXC futures trading is divided into two margin modes: U-based and Coin-M. Among them, U-based futures can also be divided into USDT-M futures and USDC-M futures. MEXC has launched more than 1,500 trading pairs of U-based perpetual futures, providing users with a wealth of investment targets. At the same time, MEXC futures trading is also highly competitive with low commission rates , and futures trading orders (Maker) roles can enjoy a minimum of 0 commission.
1. What are U-based and Coin-M perpetual futures? What's the difference?
1.1 U-based perpetual futures
U-based perpetual futures refers to a stablecoin in futures where the pricing and settlement unit is anchored to the US dollar. Currently, MEXC has launched two types of U-based perpetual futures: USDT-M and USDC-M. For the convenience of introduction, the U-based perpetual futures referred to in the following text are all examples of USDT-M perpetual futures.
The value and profit and loss calculation of U-based perpetual futures are based on USDT . Such futures are designed to mitigate the impact of cryptocurrency price fluctuations on traders, as USDT is a stablecoin anchored to the US dollar and its value is relatively stable.
Therefore, the biggest advantage of U-based perpetual futures is that users can trade over 1500 perpetual futures on the MEXC platform using only stablecoins such as USDT as margin, and can also calculate returns in fiat currency. For example, when you earn a profit of 1000 USDT, you can simply ROI assess that it is almost worth $1000, because the value of 1 USDT is approximately $1.
1.2 Advantages of USDT-M futures
Advantage 1: Simplified risk management
There is no need to worry about the decline in the price of margin currencies (such as BTC) causing the margin to shrink.
Profit and loss are clear at a glance, making it easy to develop stop-loss strategies.
Advantage 2: More flexible use of funds
USDT can be used across futures without requiring separate margin for different currency pairs.
Advantage 3: Suitable for hedging strategy
When combined with spot or other futures, USDT-M futures facilitate the calculation of hedging ratios.
1.3 Example of USDT-M futures operation
Case: Trading BTCUSDT perpetual futures. For detailed trading tutorials, please read Futures Trading Operation Guide (App side) and Futures Trading Operation Guide (Web side) .
The first step is to open a position
- Assuming the current BTC price = 60,000 USDT
- Use 1,000 USDT as margin and open a 10x leverage long position.
- Futures value = 1,000 USDT × 10 = 10,000 USDT (equivalent to 0.1667 BTC).
Step 2, position squaring and profit and loss calculation
- If BTC rises to 63,000 USDT (+ 5%):
- Nominal profit = 10,000 USDT × 5% = 500 USDT
- If BTC falls to 57,000 USDT (-5%):
- Nominal loss = 10,000 USDT × 5% = 500 USDT
It should be noted here that the above calculation is only based on mathematical dimensions. In actual trading, traders also need to consider the impact of multiple factors such as transaction fees, capital fees , slippage, and different Maintenance Margin rates.
At MEXC, the perpetual futures trading order (Maker) handling fee rate is 0.00%, and taker handling fee rate is 0.02%. For more detailed information about MEXC handling fee rates, you can refer to MEXC related rates . The rates may vary in different countries and regions. Please refer to the rate page display.
1.4 Coin-M perpetual futures
" Coin-M perpetual futures " refers to futures that use a certain cryptocurrency (such as Bitcoin or Ethereum) as margin and calculate profits and losses. In this type of futures, USD is used as the pricing unit. The value of each futures in Coin-M perpetual futures is a certain amount of US dollars. For example, the face value of each futures in BitCoin-M perpetual futures is $100.
1.5 Example of Coin-M perpetual futures operation
Case study: BTC-based perpetual futures
The first step is to open a position
- Assuming the current BTC price is 60,000 USDT.
- Investors use 0.2 BTC as margin and open long positions with 10x leverage.
- Positioning value = 0.2 BTC × 10 = 2 BTC .
Step 2, position squaring and profit and loss calculation
- If BTC rises to 63,000 USDT (+ 5%):
- Profit = 2 BTC x 5% = 0.1 BTC .
- If BTC falls to 57,000 USDT (-5%):
- Loss = 2 BTC x 5% = 0.1 BTC .
Like U-based perpetual futures, in the actual trading process of Coin-M futures trading, other factors such as transaction fees, slippage, and capital fees need to be considered.
1.6 Comparison of USDT-M futures and Coin-M futures
| Comparison Item | USDT-Margined Contracts | Coin-Margined Contracts |
| Margin Type | Stablecoins such as USDT, USDC | Corresponding underlying assets (e.g., BTC, ETH) |
| Profit/Loss Calculation | Settled directly in USDT | Settled in underlying asset, requires conversion to fiat currency |
| Risk Exposure | Only exposed to price volatility of contract's underlying asset | Exposed to both contract price + margin asset price volatility |
| Use Cases | Multi-currency trading, short-term high-frequency strategies | Investors bullish long-term on the underlying asset |
2. What are one-way and two-way positions?
2.1 One-way position
"One-way position" refers to investors who only hold long positions or short positions in futures transactions (including USDT-M futures and Coin-M futures). If investors believe that the price of a futures asset will rise, they may hold a long position; conversely, if they believe that the price will fall, they may hold a short position. This position approach correlates investors' profits or losses with the direction of changes in futures asset prices.
2.2 Two-way position
"Two-way position" refers to the user's ability to hold both long and short positions in a futures simultaneously, and to support the independence of the long and short direction leverage. In each futures, all long positions are merged, and all bear positions are merged. When holding both long and short positions, both positions need to occupy the corresponding margin according to the risk limit level.
For example, in BTCUSDT perpetual futures, users can open a long position of 25x and also open a bear position of 50x.
2.3 Comparison of one-way and two-way positions
| Feature | One-Way Mode | Hedge Mode |
| Position Direction | Only maintains net position in one direction | Supports both long and short positions simultaneously |
| Profit/Loss Calculation | Net position P&L (calculated after long and short positions offset each other) | Long and short P&L calculated separately |
| Operational Difficulty | Simple, suitable for beginners | Complex, suitable for experienced traders |
| Suitable Trading Scenarios | Trend trading | Range-bound markets, hedging strategies |
| Flexibility | Lower | Higher |
| Capital Requirement | Lower capital occupation | Higher capital occupation |
2.4 How to choose the position mode?
Choose one-way position situation
Single direction trading : clear bullish or bearish market, no need to hold long and short positions at the same time.
Reduce operational complexity : Investors who want simple management of positioning and profit and loss.
Select the case of two-way position
Hedging risk : There are long or short exposures in spot or other investments that require hedging to reduce volatility risk.
Oscillation or arbitrage strategies : Capture long and short opportunities in volatile markets, or engage in advanced strategies such as grid trading and cross-market arbitrage.
Flexible trading needs : the proportion of multiple bear positions needs to be adjusted according to market changes.
3. What are the isolated margin mode and cross margin mode?
3.1 isolated margin mode
The isolated margin mode margin refers to each position having an independent margin account. This means that each positioning has its own margin balance, and losses can only be compensated by the margin of that positioning. The maximum loss of isolated margin mode positioning is the initial margin and additional margin used by that position. This arrangement ensures that the loss of each positioning does not affect other positioning, thus limiting the scope of losses.
The advantage of the isolated margin mode margin mode is that it allows traders to more accurately control the risk of each positioning. Users can manually add margin for isolated margin mode positioning to optimize the forced liquidation price.
Scenarios applicable to isolated margin mode mode
Novice traders : It is easier to control risks and will not cause a significant reduction in account funds due to the loss of a single positioning.
High leverage trading : In the case of high leverage, the isolated margin model can limit risk exposure.
Single positioning strategy : When only a small amount of independent positioning is opened, the warehouse-by-warehouse mode is more suitable.
3.2 Cross margin mode
In the cross margin mode, all positioning shares the same margin account. With the cross margin mode, the user's available margin will be specifically used to support the corresponding full-position positioning, and will not be used as margin for other full-position positioning.
The cross margin model may be more suitable for traders who want to use their funds more flexibly, but they also need to be more cautious because losses may affect the entire account. Currently, MEXC supports adjusting positions held by positions to full positions, but does not support adjusting positions to full positions.
Applicable scenarios of cross margin mode
Large capital account : When the account balance is sufficient, it can effectively reduce the risk of liquidation of a single positioning.
Hedging trading : When multiple positioning profits and losses complement each other, the overall risk can be reduced.
High-frequency traders : When frequently adjusting positioning, it is more convenient to use cross margin mode to manage funds.
3.3 Comparison of cross margin mode and isolated margin mode
Margin Mode Comparison Table
| Feature | Cross Margin | Isolated Margin |
| Margin Source | Shared from total account balance | Independently allocated margin for each position |
| Liquidation Risk | Lower, system automatically uses account balance to supplement margin | Higher, position liquidates directly when loss exceeds allocated margin |
| Loss Impact | Losses may affect overall account funds | Losses limited to the margin allocated to that position |
| Risk Control | Suitable for overall fund management, concentrated risk | Suitable for independent position management, dispersed risk |
| Target Users | High-frequency traders, large capital accounts, hedging traders | Beginner traders, high-leverage traders, single-strategy traders |
| Margin Addition | Automatically uses account balance to supplement margin | Must manually add margin |
4. Introduction to MEXC perpetual futures leverage modification rules
MEXC supports users to modify different leverage ratios in both long and short positions. Users can modify any leverage ratio from isolated margin mode leverage ratio, and also support modification from isolated margin mode to full position. It should be noted that MEXC does not support modification from cross margin mode to isolated margin mode. Currently, MEXC's U-based perpetual futures support 1-500 times leverage, and trading pairs that provide up to 500 times leverage include BTCUSDT and ETHUSDT . Coin-M perpetual futures support 1-200 times leverage.
5. Summarize
Overall, MEXC meets the needs of various traders for efficient, flexible, and secure futures trading by providing rich futures options, flexible margin models, and high leverage.
Currently, MEXC platform has launched a 0 fee activity . By participating in this activity, users can significantly reduce transaction costs and truly achieve the goal of "saving more, trading more, and earning more". On the MEXC platform, you can not only enjoy low-cost transactions with this activity, but also keep up with market trends, keenly capture every fleeting investment opportunity, and start a journey of wealth appreciation.
Recommended reading:
- Why choose MEXC futures trading? Learn more about the advantages and features of MEXC futures trading to help you seize the opportunity in the futures field.
- How to participate in M-Day? Master the specific methods and skills of participating in M-Day, and don't miss the futures bonus airdrop of 70,000 USDT every day
- Futures Trading Operation Guide (App End) Learn more about the operation process of futures trading on the App end, so that you can easily get started and play futures trading.
Disclaimer: This material does not provide advice on investment, taxation, legal, financial, accounting, consulting, or any other related services, nor is it advice on buying, selling, or holding any assets. MEXC Novice Academy provides information for reference only and does not constitute any investment advice. Please ensure that you fully understand the risks involved and invest cautiously. All investment behaviors of users are not related to this site.
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