MEXC contract trading guide

Empower yourself with MEXC's comprehensive contract trading guide that demystifies futures trading, from account funding to risk management, ensuring a confident and well-informed trading experience.

Nov 08, 2024 at 09:12 pm

MEXC Contract Trading Guide: A Comprehensive Overview

MEXC, established in 2018, is a reputable cryptocurrency exchange offering a wide array of services, including spot trading, margin trading, and contract trading. This guide will delve into the intricacies of MEXC's contract trading platform, empowering you to navigate the world of futures trading with confidence.

Step 1: Understanding Contract Trading

Contract trading involves speculating on the future price of an underlying asset, such as Bitcoin or Ethereum, without actually owning it. Traders can either go long (betting that the price will rise) or short (betting that the price will fall). Contracts have an expiration date, after which they are settled based on the underlying asset's price at that time.

Step 2: Funding Your Account

To participate in contract trading on MEXC, you must first fund your account with either cryptocurrency or fiat currency. MEXC supports various payment methods, including bank transfer, credit/debit cards, and cryptocurrency deposits. Once your account is funded, you can transfer funds to your contract trading account.

Step 3: Choosing a Contract

MEXC offers a diverse range of contract products, including perpetual contracts (with no expiration date) and futures contracts (with a set expiration date). Each contract has different trading terms, such as contract size, leverage, and maintenance margin. Choose a contract that aligns with your trading strategy and risk tolerance.

Step 4: Placing an Order

Once you have selected a contract, you can place an order to buy (go long) or sell (go short). MEXC provides multiple order types, including limit orders (executed at a specific price) and market orders (executed at the current market price). Specify the order quantity and price, and review the order details before confirming it.

Step 5: Managing Your Risk

Contract trading involves substantial risk, so it's crucial to implement proper risk management strategies. MEXC offers various tools to mitigate risk, such as stop-loss orders (which trigger an automatic sell order if the price drops to a predefined level) and take-profit orders (which trigger an automatic sell order if the price reaches a desired profit level).

Step 6: Monitoring Your Position

After placing an order, you can monitor its performance in the "Positions" section of your account. This section displays information such as your open orders, unrealized profit/loss, and liquidation price. Regularly review your positions to adjust your trading strategy as necessary.

Step 7: Settlement

When a contract expires, it is settled based on the underlying asset's price at the time of expiration. If you have an open position, you will either realize a profit or loss based on the difference between your entry price and the settlement price. Profits are credited to your account, while losses are deducted from your account balance.

Additional Features on MEXC

In addition to the core contract trading features, MEXC also offers several additional tools and services to enhance your trading experience:

• Demo Trading: Practice contract trading with virtual funds before committing real capital.
• Tradingview Integration: Perform technical analysis and access advanced charting tools directly from within MEXC's platform.
• Copy Trading: Follow experienced traders and copy their trading strategies automatically.
• Funding Rate: Understand the mechanics behind funding rates and how they impact your positions.
• Referral Program: Earn rewards by referring new users to MEXC and sharing your referral code.