Home > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide
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Written by Larry Jones
Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.
Expert Reviewed
This article has been reviewed by crypto market experts at SCM to ensure all the content, sources, and claims adhere to the highest standards of accuracy and reliability.
Last Updated on March 11, 2025
MEXC, founded in 2018 and headquartered in Singapore, stands out as a premier cryptocurrency exchange platform.
Known for its reliability and comprehensive range of offerings, MEXC has garnered trust from over 6 million users globally.
The exchange boasts an impressive average daily trading volume surpassing $500 million, underlining its significance in the crypto trading ecosystem.
When it comes to futures trading, MEXC offers several competitive advantages.
You can enjoy low fees, trade with high leverage, and choose from various contract options.
Whether you’re a novice or an experienced trader, MEXC’s intuitive platform makes navigating the complexities of futures trading easy, ensuring a seamless trading experience.
Understanding the basics and setting up your account to start futures trading on MEXC can pave the way for potentially lucrative opportunities.
In this tutorial, you’ll learn essential steps such as transferring funds to your futures account, making your first trade, and utilizing MEXC’s robust tools to manage and optimize your trades effectively.
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Trading crypto futures on MEXC involves understanding key concepts and strategies.
Start by accessing the Futures section on the MEXC platform and transferring assets from your spot account into your futures account.
MEXC offers two margin modes: Cross Margin and Isolated Margin:
The Index Price is based on the asset’s average price across several significant exchanges. Fair Price prevents market manipulation and limits liquidations based on this price.
Funding Rate is a periodic payment between traders to keep future prices aligned with spot prices. Favorable funding means longs pay shorts, and negative funding means shorts pay longs.
For efficient trading, use the MEXC Order Calculator. It helps estimate potential profits and losses, considering leverage and entry price factors.
Understanding these basics allows you to make informed decisions and manage risk effectively while trading on MEXC.
Creating an account on MEXC is straightforward. You can choose to register via the website or the app.
MEXC offers a referral program. Share your referral link with friends. You and your friends can earn a bonus when they sign up.
Creating an account on MEXC is simple. Ensure to follow security protocols to safeguard your investments. Enjoy trading with the benefits provided by the referral program.
To start trading on MEXC, you must deposit funds into your account. This process is straightforward:
Supported Payment Methods:
Minimum and Maximum Limits:
Processing Fees and Time:
Double-check the address and details before confirming any transactions to avoid errors. This ensures that your funds will be transferred successfully.
On MEXC, your funds are typically held in the main wallet by default.
This wallet is used for spot trading and storing assets. For futures trading, you need to transfer funds to the futures wallet. This ensures that your assets are correctly allocated for derivatives trading.
To start the transfer:
Supported currencies typically include popular assets like USDT, BTC, ETH, and XRP. For accurate details on supported currencies and any specific transfer limits, refer to MEXC’s official resources.
Transferring funds between wallets ensures efficient trading capital management, ensuring you are set up for spot or futures trading as required.
Choosing between coin-margined and USDT-margined futures on MEXC depends on your trading preferences and strategies.
Coin-margined futures are settled and collateralized with cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).
This type is ideal if you prefer to hold and accumulate more cryptocurrencies. It allows you to benefit from cryptocurrency price increases when trading in a bull market.
USDT-Margined Futures are quoted and settled in Tether (USDT), a stablecoin pegged to the US Dollar.
These futures offer more excellent stability because their value is closely tied to USD. They are easier to manage and calculate potential profits, appealing to traders who want simplicity.
Type | Advantages | Disadvantages |
---|---|---|
Coin-Margined | It allows holding underlying assets, is beneficial in bull markets, and has the potential for higher gains with crypto value increase. | Susceptible to crypto market volatility, requires holding crypto as collateral. |
USDT-Margined | Stable pricing, easy profit calculation, lower volatility risk. | You might miss out on potential crypto gains without direct exposure to cryptocurrency price increases. |
Coin-Margined Futures Contracts:
USDT-Margined Futures Contracts:
When deciding, consider your risk tolerance and whether you prefer holding cryptocurrencies or stable assets like USDT. This choice will influence your trading experience and potential profit opportunities.
Navigating the futures trading interface on MEXC can initially seem complex, but understanding its components can help you trade efficiently.
MEXC’s interface allows for customization with features such as:
MEXC provides several trading tools to enhance your trading experience:
Understanding these components will enhance your trading efficiency on MEXC’s futures platform.
Select a trading pair and contract type by navigating to the [Futures] tab on the MEXC platform.
For example, choose the USDT/BTC pair and the USDT-M perpetual contract. Next, decide on the leverage level. Leverage can amplify gains and losses, so choose wisely based on your risk tolerance.
Types of Orders:
To place a limit order, go to the order placement area on the right side of the trading page. Enter the desired price and quantity for a USDT/BTC pair, then click [Buy/Long] or [Sell/Short]. Your order will appear in the [Open Order] section below.
When placing a market order, enter the quantity and click [Buy/Long] or [Sell/Short]. The order will be executed at the best available price.
By following these steps, you can confidently place and manage orders on MEXC futures, optimizing your trading strategy.
The MEXC order calculator is valuable for futures trading, enabling you to assess potential outcomes before executing trades.
Accessing the order calculator is straightforward. Start by navigating to the MEXC futures trading platform. You’ll find the order calculator at the top right corner of the page.
Once there, it would be best if you input several parameters. These include:
Scenario 1: Determining Potential Profit
The order calculator will provide you with the potential profit by inputting these details. For instance, in this case, if the price moves from $50,000 to $52,000, your potential profit calculations are based on the leverage and quantity specified.
Scenario 2: Assessing Potential Loss
Here, the calculator determines the potential loss if the price drops from $50,000 to $48,000. This highlights how crucial the calculator is for risk management.
The MEXC order calculator equips you with vital insights, allowing you to make informed decisions.
In this section, you’ll find answers to common questions about trading futures on MEXC. These questions address fees, beginner steps, short selling, and automated trading.
MEXC charges trading fees on futures contracts, typically between 0.02% and 0.075% per transaction. Fees are applied differently for makers and takers, with makers paying less. To stay updated, checking the latest fee schedule on the MEXC website is essential.
First, you need to register an account on the MEXC platform. Then, deposit funds into your future account. Open the MEXC App or website, go to [Wallets], and transfer funds from [Spot] to [Futures]. Ensure you have enough USDT or other supported assets.
Yes, MEXC allows short selling. To short sell, select a futures contract and choose a sell order. This involves borrowing an asset to sell it at the current price, hoping to repurchase it at a lower price in the future. Be sure to manage your risk and understand the market conditions.
MEXC offers an API for automated trading. You need to generate API keys through your MEXC account settings. You can connect to the API and integrate these keys with your trading bots or algorithms. Detailed API documentation is available on the MEXC website to help you get started.
Embarking on futures trading with MEXC offers a dynamic opportunity in the cryptocurrency trading market. This platform facilitates a seamless trading experience with some of the lowest fees available.
Before diving in, ensure you have adequate funds in your future account. Transfers from your spot account to your futures account are straightforward and essential for starting.
Steps to Get Started:
Leverage the available resources to enhance your trading knowledge:
Take advantage of MX Tokens for an additional 10% discount on trading fees. This incentive is beneficial for managing costs and maximizing profits.
For further support, MEXC provides detailed guides and tutorials. You can always seek additional help through their customer support and educational materials.
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Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.
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