How to short sell at MEXC? Detailed explanation of the steps for shorting MEXC contracts

Short selling on MEXC involves borrowing assets, selling them, and buying back at a lower price to profit. This guide details the process for USDT-Margined Contracts.

May 31, 2025 at 08:35 am

Short selling on MEXC, a popular cryptocurrency exchange, involves borrowing an asset you believe will decrease in value, selling it, and then buying it back at a lower price to return to the lender, pocketing the difference as profit. This article provides a detailed walkthrough of the steps required to short sell MEXC contracts, ensuring you understand every aspect of the process.

Understanding Short Selling on MEXC

Short selling on MEXC involves trading futures or perpetual contracts. These contracts allow traders to speculate on the price movement of cryptocurrencies without owning the underlying asset. To short sell, you need to open a position betting that the price of a specific cryptocurrency will fall.

MEXC offers various contract types, including USDT-Margined Contracts and Coin-Margined Contracts. For this guide, we will focus on USDT-Margined Contracts, as they are more commonly used for short selling due to their stability and ease of use.

Preparing to Short Sell on MEXC

Before you can start short selling, you need to prepare your MEXC account and ensure you have the necessary funds. Here's what you need to do:

• Register and Verify Your Account: If you haven't already, sign up for a MEXC account and complete the necessary KYC (Know Your Customer) verification. This typically involves submitting personal identification documents.

• Deposit Funds: Navigate to the "Wallet" section on MEXC and deposit USDT into your account. You'll need this to margin your short position.

• Enable Futures Trading: Go to the "Futures" section and enable futures trading. This may require additional verification steps.

• Understand the Risks: Short selling can lead to significant losses if the market moves against you. Ensure you understand the risks and only trade with funds you can afford to lose.

Opening a Short Position on MEXC

Once your account is set up, follow these steps to open a short position:

• Navigate to Futures Trading: Go to the "Futures" section on MEXC and select "USDT-Margined Contracts".

• Choose the Contract: Select the cryptocurrency you want to short. For example, if you believe Bitcoin (BTC) will decrease in value, choose the BTC/USDT contract.

• Set Your Leverage: Decide on the leverage you want to use. Higher leverage can amplify both gains and losses. For beginners, starting with lower leverage (e.g., 5x) is advisable.

• Open the Short Position: Click on "Sell/Short" to open your position. You will need to specify the amount you want to short and the price at which you want to enter the market. You can choose to enter at the market price or set a limit order.

• Monitor Your Position: After opening your short position, keep an eye on the market. You can use the MEXC platform's charting tools to track price movements.

Managing and Closing Your Short Position

Managing your short position effectively is crucial to maximizing your profits and minimizing your losses. Here's how to do it:

• Set Stop-Loss and Take-Profit Orders: To manage risk, set a stop-loss order to automatically close your position if the price moves against you beyond a certain point. Similarly, set a take-profit order to lock in profits if the price reaches your target.

• Monitor Market Conditions: Keep an eye on market news and trends that could affect the price of the cryptocurrency you're shorting.

• Close Your Position: When you're ready to close your short position, go back to the "Futures" section and click on "Buy/Long" to buy back the contract you sold. You can choose to close at the market price or set a limit order.

Calculating Profits and Losses

Understanding how to calculate your profits and losses is essential for effective short selling. Here's how it works:

• Profit Calculation: If you shorted a contract at a higher price and bought it back at a lower price, the difference is your profit. For example, if you shorted 1 BTC/USDT contract at $50,000 and bought it back at $45,000, your profit would be $5,000 per contract.

• Loss Calculation: Conversely, if the price rises after you short, you'll incur a loss. Using the same example, if you shorted at $50,000 and the price rose to $55,000 before you closed your position, you'd lose $5,000 per contract.

• Leverage Impact: Remember that leverage amplifies both profits and losses. If you used 10x leverage in the above examples, your profit or loss would be 10 times higher.

Frequently Asked Questions

Q: Can I short sell any cryptocurrency on MEXC?

A: MEXC offers a variety of cryptocurrencies for short selling through its futures and perpetual contracts. However, not all cryptocurrencies are available for short selling. You can check the list of available contracts in the "Futures" section of the platform.

Q: What are the fees associated with short selling on MEXC?

A: MEXC charges various fees for short selling, including trading fees and funding fees for holding positions overnight. The exact fees depend on your trading volume and the specific contract you're trading. You can find detailed fee information on the MEXC website.

Q: How does margin call work on MEXC when short selling?

A: When short selling with leverage, if the market moves against your position and your margin balance falls below the maintenance margin requirement, you'll receive a margin call. MEXC will automatically close your position to prevent further losses if you don't add more margin to your account in time.

Q: Is it possible to short sell without leverage on MEXC?

A: Yes, you can short sell without leverage by using a 1x leverage setting. This means you're trading with your actual account balance, which reduces the risk but also limits potential profits.