MEXC offers a platform for crypto trading, including Futures trading and Perpetual Contracts. This detailed guide will provide insights into the specific aspects of Coin-M and USDT-M Perpetual Futures, the Futures Bonus, and other essential functionalities related to trading on MEXC.
Table of Contents
What Are Perpetual Futures?
Perpetual futures contracts are cryptocurrency derivatives similar to leveraged spot trading. These contracts allow users to speculate on price movements by choosing to buy long or sell short. Unlike traditional futures, perpetual futures do not have settlement dates. Instead, the index price is anchored by the funding rate.
What is USDT-M Perpetual Futures?
USDT-M perpetual futures are contracts quoted and settled in USDT (Tether), a stablecoin pegged to the U.S. dollar. This type of contract mitigates the impact of crypto price volatility, making it easier for traders to calculate returns in a fiat equivalent value.
For instance, a profit of 1,000 USDT is nearly equivalent to 1,000 USD.
What is Coin-M Perpetual Futures?
Coin-M perpetual futures use specific cryptocurrencies like Bitcoin or Ethereum as the margin and for PNL calculations, with USD serving as the quote unit. The contract size is fixed in USD, such as 100 USD per Bitcoin-M perpetual futures contract.
How Do Collateral Risks Vary Between Coin-M and USDT-M Perpetual Futures?
The risk scenarios differ significantly between the two types of contracts due to the nature of the collateral asset. In USDT-M perpetual futures, the collateral is in USDT, a stablecoin. Thus, a drop in the price of the underlying cryptocurrency does not affect the collateral’s value, offering a layer of protection against market volatility.
In contrast, for Coin-M perpetual futures, the collateral is the underlying cryptocurrency itself. If the price of this crypto falls, the amount of collateral required increases. This can lead to a situation where more of the underlying crypto is needed as collateral, potentially leading to higher risks and additional margin calls for the trader.
What is Isolated Margin?
Isolated margin mode allocates separate margin balances for each position, limiting potential losses to the margin associated with that specific position only. This mode provides precise risk management per trade.
What is Cross Margin?
Cross margin mode pools the margin across all positions, allowing traders to utilize their total account balance to cover losses across several positions. This mode is ideal for traders who prefer a flexible use of their funds but comes with increased risk. If you catch yourself doing this when trades go south, you will experience a rude awakening sooner or later. Watch out!
How Do You Use Leverage in MEXC Perpetual Contracts?
MEXC supports up to 200x leverage in perpetual contracts, with the actual maximum leverage varying by the token and its liquidity. Users can also use different leverage multiples for long and short positions and switch between cross margin and isolated margin modes.
How Do You Trade Futures on MEXC?
Trading futures on MEXC is straightforward, even for those new to futures trading. Here’s a step-by-step process:
- Create a Free MEXC Account: Start by signing up on the MEXC platform, which can be done through the MEXC app, website using your email, or your mobile number.
- Complete KYC Verification: Verify your identity to comply with regulatory requirements and unlock full trading capabilities.
- Open a Futures Trading Account: Navigate to the futures section on MEXC and activate your futures trading account.
- Deposit Funds: You can deposit funds in USDT through P2P trading, instant credit, or card purchases.
- Transfer Assets: Move your assets from the spot or fiat wallet to your futures account.
- Select Your Futures Contract: Choose between USDT-M Futures and Coin-M Futures depending on your preference.
- Set Your Leverage: MEXC supports up to 200x leverage. Decide the leverage you are comfortable with.
- Place Your Order: For beginners, it is advisable to start with a buy-limit or buy-market order.
What Types of Orders Are Available in MEXC Futures?
- Limit Order: Users can set the order price, which will be executed at that price or better. Time in force options include GTC (Good-Til-Canceled), IOC (Immediate-Or-Cancel), and FOK (Fill Or Kill).
- Market Order: Orders are filled at the best available price instantly without setting a price.
- Trigger Order: Orders are placed when the market price reaches the set trigger price.
- Post Only: Ensures the user is always a Maker by revoking the order if it would fill immediately as a Taker.
- Trailing Stop Order: Adjusts the trigger price based on market volatility and user-set parameters.
- Stop Limit Take Profit: Allows setting a take profit and stop loss price at the time of opening the position.
Why Choose MEXC Futures for Trading?
MEXC is a preferred choice for futures trading due to its many markets reasonable market liquidity. If you want to have;
- High Leverage: Freely adjust leverage from 1 to 200x
- Trade The Newest Coins: Enjoy the new entrants of the market, even if they are on a new experimental chain, MEXC probably has a market for it.
What are the MEXC Futures Tiered Fee Rates and How Does It Work?
MEXC Futures has adopted a tiered fee rate system to decrease transaction costs and provide a better trading experience. This structure is designed to benefit active traders by offering lower fees based on trading volume or account balance. It works in the following way:
- Trading Volume Calculation: The trading volume includes both opening and closing transactions across all contract types.
- Daily Updates: The trader level is updated daily at 16:00 (UTC) based on the user’s 30-day trading volume or the Futures account wallet balance. Note that this update time might be slightly delayed.
- Exceptions: When the contract fee rate is 0 or negative, the contract fee discount will not be applied. Additionally, market makers are not entitled to these discounts.
Futures Bonus Instruction
You can earn a futures bonus on MEXC. These have specific applications:
- The bonus is strictly for futures trading.
- Profits generated from trades using the bonus can be withdrawn, but the bonus itself cannot.
- The bonus can serve as a margin for trades or be used to cover trading fees, losses, and funding fees. For example, if you have a 5 USDT bonus and you incur a 2.50 USDT loss and a 0.03 USDT trading fee, a total of 2.53 USDT will be deducted from your bonus.
What Triggers the Clearance of the Bonus?
Transferring assets out of your futures account before fully utilizing the bonus will result in the clearance of the bonus.
Where to Check Your Bonus Balance in the App or Website?
The bonus balance is accessible in the MEXC App under:
- Wallets -> Futures -> USDT -> Bonus
For desktop users, the bonus balance can be checked by navigating to:
- MEXC Official Website -> Capital Flow -> Type -> Bonus