MEXC perpetual contract trading rules

On MEXC, traders have access to perpetual contracts with low fees, high leverage, various trading pairs, and advanced tools for optimal decision-making in the dynamic cryptocurrency market.

Nov 16, 2024 at 12:39 am

MEXC Perpetual Contract Trading Rules

Perpetual contracts, also known as perpetual futures or perpetual swaps, are a type of derivative contract that allows traders to speculate on the future price of an underlying asset, such as cryptocurrency. These contracts differ from conventional futures contracts in that they do not have a fixed expiration date and can be held indefinitely.

MEXC, a leading cryptocurrency exchange, offers a comprehensive suite of perpetual contract trading services to its users. These services include:

• Low fees: MEXC offers competitive trading fees, which can be further reduced by holding the exchange's native token, MX.
• High leverage: Traders can access leverage of up to 125x on perpetual contracts, which can amplify both profits and losses.
• Variety of trading pairs: MEXC offers a wide range of trading pairs, allowing traders to speculate on the price of popular cryptocurrencies, altcoins, and stablecoins.
• Advanced trading tools: MEXC provides a suite of advanced trading tools, including charting tools, order types, and risk management features, to help traders make informed trading decisions.

Understanding MEXC Perpetual Contract Trading

1. Choose a Trading Pair

The first step in trading perpetual contracts on MEXC is to choose a trading pair. A trading pair is a pair of currencies that are traded against each other, such as BTC/USDT, ETH/USDT, or BNB/USDT.

2. Place an Order

Once you have chosen a trading pair, you can place an order to buy or sell the perpetual contract. There are two main types of orders: limit orders and market orders.

• Limit orders: Limit orders allow you to specify the price at which you want to buy or sell the perpetual contract. The order will only be executed if the market price reaches your specified price.
• Market orders: Market orders allow you to buy or sell the perpetual contract at the current market price. The order will be executed immediately at the best available price.

3. Monitor Your Position

Once you have placed an order, you should monitor your position to manage your risk and maximize your profits. You can monitor your position by observing the following metrics:

• Mark Price: The mark price is the current market price of the perpetual contract.
• Funding Rate: The funding rate is a small fee that is charged to traders who hold long or short positions. The funding rate is designed to encourage traders to keep the market in balance.
• Unrealized Profit/Loss: The unrealized profit/loss is the current profit or loss that you would make if you closed your position at the current market price.
• Liquidation Price: The liquidation price is the price at which your position will be liquidated if the market price moves against you.

4. Adjust Your Position

As the market price changes, you may need to adjust your position to manage your risk and maximize your profits. You can adjust your position by doing the following:

• Taking profits: If the market price is moving in your favor, you can take profits by closing your position at a profit.
• Cutting losses: If the market price is moving against you, you can cut losses by closing your position at a loss.
• Adding to a position: If you think that the market price is going to continue to move in your favor, you can add to your position by buying or selling more perpetual contracts.

5. Close Your Position

When you have made a profit or a loss, you can close your position to realize your profit or loss. You can close your position by doing the following:

• Buy to close: If you have a short position, you can buy to close your position by buying the same number of perpetual contracts that you sold.
• Sell to close: If you have a long position, you can sell to close your position by selling the same number of perpetual contracts that you bought.
• Conditional Order: You can place a conditional order to close your position at a specified price. The order will only be executed if the market price reaches your specified price.

6. Fees

MEXC charges a trading fee for each perpetual contract trade. The trading fee is a percentage of the trade value and varies depending on the trading pair. You can reduce your trading fees by holding the exchange's native token, MX.

7. Risk Management

Perpetual contract trading is a risky activity, and you should always manage your risk carefully. The following are some tips for managing your risk:

• Set stop-loss orders: Stop-loss orders are orders that automatically close your position if the market price reaches a specified