Futures trading is an important part of the cryptocurrency trading market. Traders use leverage flexibly to lock in part of the margin for long and short bilateral trading, achieving the goal of small bets for big trades. This article aims to provide beginners with a beginner's guide to futures trading on the web through detailed operation explanations, making it easy to get started with 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 types of margin modes: U-based and coin-based. Among them, U-based futuress can also be divided into USDT-based futuress and USDC-based futuress. MEXC currently has more than 1200 trading pairs of U-based perpetual futures online, providing users with rich investment targets. At the same time, MEXC futures trading also enjoys highly competitive low commission rates and is widely praised. The futures trading maker role can enjoy a minimum of 0 commission.
The futures trading process on the MEXC web page provides users with more comprehensive market information references, including fund transfer, margin mode setting, leverage adjustment, position viewing, and position squaring, which is convenient for professional traders to use.
MEXC futures trading provides users with diversified order methods such as limit order , Market Order , plan order, and tracking order, meeting the trading needs of different client bases.
Before starting futures trading, you need to ensure that you have the corresponding asset in your futures account, that is, USDT . If there is no USDT in your futures account, you can transfer from spot assets. There is no transaction fee for the transfer operation.
Open the MEXC official website and log in to your account. Click on "futures" in the upper right corner under "Wallets". Click the "Transfer" button on the right to transfer assets from the spot account to the futures account, select the USDT currency, enter the amount of USDT you want to transfer, and click "Transfer Now" after filling in.
Due to the fact that the positioning mode, margin mode, and leverage mode will all affect your profits and losses during futures trading, MEXC recommends that you complete the order placement operation according to the following process.
Set up positioning mode, margin mode, and leverage mode.
Select order mode;
Set parameters;
Complete the order, i.e. open long or open short.
If you plan to trade BTC/USDT perpetual futures, you can hold both long and short positions of the BTC/USDT futures trading pair in a two-way position mode. For example, if you open a long position of 5 bitcoins in the first transaction, a short position of 3 bitcoins in the second transaction, and a long position of 2 bitcoins in the third transaction, then you hold two positions of the Bitcoin USDT-based perpetual futures - a long position of 7 bitcoins and a short position of 3 bitcoins.
In the one-way position mode, you can only hold one of the long and short positions. For example, if you open a long position of 5 bitcoins in your first transaction and a short position of 3 bitcoins in your second transaction, when the second transaction is completed, the system will first trade the long positions of 3 bitcoins out of the 5 bitcoins you already hold with the short positions of the 3 bitcoins you recently placed. In the end, your bitcoin USDT perpetual futures positioning will only have one long position of 2 bitcoins.
On the MEXC official website , select [USDT-based perpetual futures] under [Perpetual futures] in the top navigation bar [futures Trading] to enter the trading page, and switch to BTC/USDT perpetual futures trading pair on the trading page.
Click the "⚙️" button in the upper right corner to open the preferences page.
In the preferences, click on "Positioning Mode" under the trading settings, select "Two-way Position" or "Single Position", and click "OK" to complete the settings. Here we will use two-way position as an example to demonstrate.
Note that if you already have open positions and pending orders, you are not allowed to adjust the positioning mode.
In cross mode, you use all available balances in the corresponding settlement currency as positioning margin to maintain positioning and avoid forced liquidation. In this margin mode, when the Net Asset Value is insufficient to meet the Maintenance Margin requirement, forced position squaring will be triggered. If positioning is forced position squaring, you will lose all assets in the corresponding currency
Under isolated mode, when an order is triggered, the positioning of each order is calculated independently. If you need to add positions, even if you have sufficient assets in other isolated or full-position accounts, you will not automatically add positions to the trading pair and will need to manually add positions.
Click "cross" or "isolated" on the right side of the MEXC futures trading page to open the margin mode setting page, select the margin mode you want to set, and click "OK" to take effect. Here we will use cross as an example to demonstrate.
It should be noted that the adjusted margin model is not effective for positions held and pending orders.
The leverage mode of the MEXC platform is divided into two types: minimalist mode and advanced mode. The difference between the two lies in whether the leverage and margin modes used in the long and short directions are the same or different multiples.
Click the "⚙️" button in the upper right corner of the trading page to open the preference settings, click the "leverage mode" under the trading settings, select the "simple mode" or "advanced mode", and click "OK" after the selection is completed.
Here we use advanced mode as an example to demonstrate. The advanced mode allows the use of different leverage and margin modes for both long and short positions. As shown in the figure below, long positions use 25x leverage in isolated mode, while bear positions use 20x leverage in cross mode.
We use limit price as an example to demonstrate the order placement operation.
Set the margin mode to "cross", leverage ratio to "25X", and select the "Limit Price" order mode. Enter the target price in the "Price" column below, such as 65000 USDT, and enter the "Quantity", such as 49%. Click "Open Long" or "Open Short" below to complete the order.
In the trading area, you can see the maximum amount you can open long or short.
Overview of the maximum allowable calculation logic: When you submit a futures order, the system will first calculate the maximum number of futures you can open. If you switch the futures unit to "USDT" or "corresponding token", the system will convert the number of futures into the corresponding "USDT amount" or "token quantity". The maximum allowable quantity displayed on the page represents the maximum number of futures you can "buy long" or "sell short" under the current leverage ratio set based on your futures account assets.
Of course, there is another situation that needs to be noted: in order to protect the trading security of all users of the platform, the MEXC platform risk control team has set limits on the maximum opening and maximum open position for all futures trading pairs. For specific information, please read the MEXC futures trading risk restriction rules .
Calculation logic between different futures units (token quantity, USDT, cont)
Maximum open long/short: open (number of cont) = available margin/[estimated transaction price * futures face value * (initial margin rate + 2 * estimated commission rate) ]
Maximum USDT value = number of cont * face value * price
Maximum number of tokens that can be opened = number of cont * face value
Note:
The estimated transaction price and estimated transaction fee rate (used to estimate the fees for opening and closing positions) depend on the user's order placement method (market price or limit price) and the trading direction (long or short).
Limit order: Calculate the maximum opening based on the input price as the estimated transaction price (excluding Taker transactions).
Market Order: Calculate the maximum opening price based on the estimated transaction price based on the opening price (buy 1 price based on the opening price; sell 1 price based on the opening price).
The number of open positions is cont as an integer. If there is a decimal point value in the calculation of the number of positions, the decimal point value will be discarded for rounding.
If your order is not triggered, you can check it in the "Current Order" section below, as shown in the figure below. If your order is triggered, you can check it in the "Current Positioning" section.
If your order is triggered and there is a profit or loss: you can actively position squaring according to your expectations. You can also complete active position squaring by setting the take profit and stop loss function of futures trading before or after placing an order. If you want to learn more, you can refer to the article " Take Profit and Stop Loss in futures Trading ".
Mandatory position squaring is a passive position squaring behavior; in order to ensure that the loss does not exceed the margin you have deposited, MEXC will forcibly settle the part that has not been position squaring when the existing margin is lower than the necessary amount to maintain positioning. If you want to learn more, you can refer to the article " What is Mandatory Position Squaring ".
futures trading is a trading behavior that requires continuous learning and adjusting strategies according to market conditions. For beginners, it is necessary to manage risks well, allocate positioning reasonably, and not blindly follow others' advice. Trading should be based on one's own judgment.
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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.