How to do Coin-margined Perpetual Contract Trading Tutorial on MEXC Exchange App?
- Log in to the MEXC app, click on the bottom navigation bar [Contract] to enter the contract trading, and click on the upper left corner to select the trading type. The following uses the coin-margined BTCUSD as an example.
2. The icons in the upper right corner respectively represent: K-line diagram, favorites, and more. Click the “… (more)” symbol to view the guide, instruction and other functions.
3.1 Choose trading type: coin-margined perpetual contract. The coin-margined contracts are perpetual contracts with corresponding digital assets as margin. Currently, the coin-margined contract has opened BTCUSD and ETHUSD trading pairs, and more trading pairs will be opened in the future, so stay tuned. The following will take the coin-margined perpetual contract BTCUSD as an example.
3.2 Asset transfer: if the current available assets are insufficient, click [Transfer] in the lower right corner to transfer the assets from spot account to the contract account. If the current available assets are insufficient and the spot account still has no assets, you can choose deposit or fiat currency trading.
3) Place order: enter “price and amount” and select leverage, then click “Buy Long or Sell Short” to place order
Different products with different leverage multiple and MEXC now support the max. leverage up to 125x. The leverage is determined by the initial margin and maintenance margin, which determines the minimal amount of the asset for positions opening and holding.
*At present, leverage change is available on both long and short positions. Users can change any leverage on cross mode.
How to change the leverage?
For example, the long position is 20x, and the short position is 20x. To decrease the risk of long and short hedging, the user plans to adjust the leverage of short position from 20x to 10x.
Please click “Short.50X” and adjust the leverage to the planned 10x, and then click “OK”. Then the leverage of the short position is 10x.
5. Cross Margin
Cross margin refers to the use of all available balance in the account as margin to avoid liquidation. Any other position that has achieved profitability can help increase the margin on the loss position.
The cross margin includes the initial position margin and available balance. Using the full position mode, the available balance of the user’s loss under the cross positions mode will not be used as the margin for other cross positions. At present, MEXC supports to change the positions from isolated to cross mode, and cross mode to isolate mode is not available.
6. Isolated Margin
The maximum loss of isolated position is limited to the initial margin of the position and the increased margin used by the position. If a position gets liquidated, the user will only lose the isolated position margin for each position, and the available balance of the account will not be added. Margin for isolating a certain position, you can limit the loss in this position to the initial margin when your short-term speculative trading strategy fails.
Users can manually add a margin for isolated positions to optimize the liquidation price. After a margin is increased for a position, if the user adjusts the leverage, the previous margin will be reset.
*The system default is isolated.
Note: at present, MEXC supports to change the positions from isolated to cross mode, and cross mode to isolate mode is not available.
[Change leverage multiplier under the isolated position mode]
Different leverage multiplier modification is available in both long and short positions, in which users can change any leverage multiplier under the isolated position mode.
[How to change]
For example, the current position is 20x long for BTCUSDT contract, if you want to change cross to isolate, you need to click [Buy long.20X] first, then click [Cross], finally click [Confirm] to change it.
7.Buy/Long and Sell/short
If the trader judges that the market price will rise in the future, he will buy a certain number of contracts.
Buy/long is actually buying the contract at the right price, waiting for the market price to rise and then selling (close position) to earn the difference, similar to the spot transaction, referred to as “buy first and then sell”
If the trader judges that the market price will fall in the future, he will short and sell a certain number of contracts.
Sell/short is actually selling the contract at the right price, waiting for the market price to fall and then buying (closing) to earn the difference, referred to as “sell first and then buy”.
If you have read the above tutorial, congratulations, you have completed the first transaction!
MEXC Futures supports different orders to meet the various needs of traders.
8.1 Limit orderLimit order allows users to set an order price, and the order will be executed at the order price or a price better than the order price.
8.2 Market orderThe market order will be traded at the best price currently available in the order list at the time, and there is no need to set the price by yourself, which can make the order quickly traded.
8.3 Plan order
A trigger price will be set. When the user’s selected benchmark price (market price, index price, fair price) reaches the trigger price, the normal limit price after the trigger price will occur.
8.4 Complete transaction or cancellation
Orders are fully traded at the order price or better price, or they will be completely cancelled. Partial transactions are not allowed.
If you need more information about the calculations, use the “Calculator” in our trading page.