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Types of Order on MEXC Futures

2020-06-08

#FAQ#Beginner's Guide#Futures

Limit Order Limit orders allow the trader to set a specific buying or selling price, and the order will be filled at the order price or at a price more favorable than the order price. When a limit order is submitted, if there is no order of which price is more favorable than or equal to the order price available for matching in the order book, the limit order will enter the order book to be filled, increasing the market depth. After the order is filled, the trader will be charged according to the more favorable maker fee. When a limit order is submitted, if an order of which price is more favorable than or equal to the order price is already available for matching in the order book, the limit order will be immediately filled at the current best available price. Because of the liquidity consumed during the order execution, a certain trading fee will be charged as the Taker fee expense. In addition, limit orders can also be used to partially or fully close a take profit limit order. The advantage of a limit order is that it is guaranteed to be filled at the specified price, but there also exists a risk that the order will not be filled. When using a limit order, the user can also switch the effective time type of the order according to their trading needs, and the default is GTC: - GTC (Good ‘Til Canceled Order): This type of order will remain valid until it is fully filled or canceled. - IOC (Immediate or Cancel Order): If this type of order cannot be filled immediately at the specified price, the unfilled part will be canceled. - FOK (Fill or Kill Order): This type of order will be canceled immediately if all orders cannot be filled. Market Order The market order will be filled at the best price available in the order book at the time. The order can be quickly filled without having the trader set the price. The market order guarantees the execution of orders but not the execution price, as it may fluctuate depending on market conditions. Market orders are typically used when a trader needs to make a quick entry to capture a market trend. Trigger Limit Order If the trigger price is set, when the benchmark price (market price, index price, fair price) selected by the user reaches the trigger price, it will be triggered, and a limit order will be placed at the order price and quantity set by the user. Stop Market Order If the trigger price is set, when the benchmark price (market price, index price, fair price) selected by the user reaches the trigger price, it will be triggered, and a market order will be placed with the quantity set by the user. Note: The user's funds or positions will not be locked when setting the trigger. The trigger may fail due to high market volatility, price restrictions, position limits, insufficient collateral assets, insufficient closeable volume, futures in non-trading status, system issues, etc. A successful trigger limit order is the same as a normal limit order, and it may not be executed. Unexecuted limit orders will be displayed in active orders. Trailing Stop Order A trailing stop order is a strategy order for tracking market prices, and its trigger price may change with latest market fluctuations. Trigger price calculation: Sell, Actual Trigger Price = Market's Historically Highest Price - Trail Variance (Price Gap), Or Market's Historically Highest Price * (1 - Trail Variance %) Buy, Actual Trigger Price = Market's Historically Lowest Price + Trail Variance, Or Market's Historically Lowest Price * (1 + Trail Variance %) Trailing orders allow users to select an activation price for the order, and the system will start calculating the trigger price only after the order is activated. Identification for Trailing Stop Order Trail variance: The trail variance is the main condition for calculating the actual trigger price. The actual trigger price will be calculated based on the highest/lowest price of the specified price type after the order activation and the trail variance. Quantity: The number of orders placed. Price type: You can select the last transaction price, fair price or index price as the criteria to activate and trigger trailing orders. Activation price: Activation price is the activation condition of a trailing order. When the price of the specified price type reaches or exceeds the activation price, the order will be activated. The system will only start calculating the actual trigger price upon activation. If the activation price is not defined, the order will be activated upon placement. For example: Case 1 (Sell the rip): The user wants to sell BTC without selecting the activation price (i.e. activate as soon as the order is placed) and the last transaction price is 30,000 USDT. Then, one may set the parameters as follows. [Trail Variance - Price Gap] 2,000 USDT [Quantity] 1 BTC [Price Type] Last Transaction Price In the event where the BTC price keeps increasing to the highest point of 40,000 USDT after the order is placed, and then retraces to 38,000 USDT, reaching the retracement condition (40,000 USDT - 2,000 USDT = 38,000 USDT), the system decides for the user to sell at the market price at 38,000 USDT. Case 2 (Buy the dip): The user wants to buy BTC and the last transaction price is currently 40,000 USDT. Then one may set the parameters as follows. [Trail Variance - Ratio] 5% [Activation Price] 30,000 USDT [Quantity] 1 BTC [Price Type] Last Transaction Price In the event where the BTC price keeps falling to 30,000 USDT after the order is placed, the trailing is activated, it then falls all the way to 20,000 USDT and bounces back to 20,000 USDT * (1 + 5%) = 21,000 USDT, reaching the retracement condition (5%), the system decides for the user to buy at the market price at 21,000 USDT. Post Only Post-only orders will not be filled in the market immediately, which ensures that the user is always a maker and enjoys the yield of the trading fee as a liquidity provider; at the same time, if the order is filled with an existing order, then the order will be canceled immediately. TP/SL TP/SL refers to the pre-set trigger price (take profit price or stop loss price) and trigger price type. When the last price of the specified trigger price type reaches the pre-set trigger price, the system will place a close market order according to the pre-set quantity in order to take profit or stop loss. Currently, there are two ways to place a stop loss order: <ol> <li style="font-weight: 400;" aria-level="1">Set TP/SL when opening a position: This means to set TP/SL in advance for a position that is about to be opened. When the user places an order to open a position, they can click to set a TP/SL order at the same time. When the open position order is filled (partially or fully), the system will immediately place a TP/SL order with the trigger price and trigger price type pre-set by the user. (This can be viewed in open orders under TP/SL.)</li> </ol> <ol> <li style="font-weight: 400;" aria-level="1">Set TP/SL when holding a position: Users can set a TP/SL order for a specified position when holding a position. After the setting is complete, when the last price of the specified trigger price type meets the trigger condition, the system will place a close market order according to the quantity set in advance.</li> </ol>

Liquidation and Risk Limit

2020-06-08

#FAQ#Futures

<h1>I. About Liquidation</h1> MEXC uses the fair price to prevent liquidation due to illiquidity or market manipulation. Your liquidation price and unrealized PNL will be calculated using the fair price. <ul><li style="font-weight:400">Liquidation in Isolated Margin Mode</li></ul> Position Margin + Unrealized P&L ≤ Maintenance Margin + Liquidation Fees When the margin rate = 100%, liquidation will be triggered. <ul><li style="font-weight:400">Liquidation in Cross Margin Mode</li></ul> Equity in cross margin account (excluding margin and unrealized PNL in isolated margin mode, and all order margin) ≤ Maintenance Margin + Liquidation Fees When the margin rate = 100%, liquidation will be triggered. <ul><li style="font-weight:400">Liquidation Process</li></ul> In the event that liquidation is triggered, the system will perform a partial liquidation process in an attempt to avoid a full liquidation of a trader’s position based on the trader’s risk tier. <ul><li style="font-weight:400">Canceling an order: In cross margin mode, all current orders will be canceled. In isolated margin mode, if automatic margin call is enabled, all current Futures orders will be canceled. If the margin rate is still greater than 100% after the cancellation, the system will proceed to the next step.</li><li style="font-weight:400">Long/short self-dealing: Self-deal forced position reduction of cross margin positions in hedged mode (only for cross margin mode). If the margin rate is still greater than or equal to 100%, the system will continue to the next step.</li><li style="font-weight:400">Partial liquidation: If the user's position is at the lowest risk tier, the system will proceed to the next step directly. If tier is greater than the 1st tier, the tier needs to be lowered first, i.e., part of the positions at the current tier will be taken over by the forced liquidation mechanism and liquidated at the bankruptcy price so as to reduce the risk limit tier. The maintenance margin rate is then calculated using the maintenance margin after the reduction to see if it is greater than or equal to 100%. If the conditions for liquidation are still met, the positions will be reduced again until it reaches the lowest tier.</li><li style="font-weight:400">Forced liquidation: If the position is at the lowest tier but the margin rate is greater than or equal to 100%, the remaining position will be taken over by the forced liquidation mechanism and liquidated at the bankruptcy price. (The takeover process does not go through the aggregation system so the bankruptcy price will not be displayed on the market transaction record and K-line.)</li></ul> Process after positions are taken over by the forced liquidation mechanism: <ul><li style="font-weight:400">When a user’s position is taken over by the forced liquidation mechanism at the bankruptcy price, if the position can be executed in the market at a better price, the remaining margin will be added to the insurance fund.</li><li style="font-weight:400">If the position cannot be executed at a price better than the bankruptcy price, the loss will be covered by the insurance fund. Eventually, if the insurance fund is not sufficient to cover the loss of the liquidated position, the position will be taken over by the auto-deleveraging system.</li></ul> <ul><li style="font-weight:400">Calculation of Liquidation Price</li></ul> (1) Liquidation Price (isolated margin mode, users can manually add margin) Liquidation condition: Position Margin + unrealized P&L ≤ Maintenance Margin + Liquidation Fees When the margin rate = 100%, liquidation will be triggered and the price of the forced liquidation is derived from the equation. (In the example below, liquidation fees will be omitted in the calculation process.) Long: Liquidation Price = (Maintenance Margin – Position Margin + Averaging opening price * Quantity * Position size) / (Quantity * Position size) Short: Liquidation Price = (Averaging opening price * Quantity * Position size - Maintenance Margin + Position Margin) / (Quantity * Position size) A user buys in 10,000 cont. of BTC/USDT perpetual futures at 8,000 USDT with an initial leverage multiple of 25x in a long position. (Assume the position of 10,000 cont. is at 1st tier of risk limit with a maintenance margin rate of 0.5%.) Maintenance Margin = 8000x10000x0.0001x0.5%=40USDT; Position Margin = 8000x10000x0.0001/25=320USDT; Calculate the user’s liquidation price: Liquidation Price for the Long position =（40-320+8000x10000x0.0001）/（10000x0.0001）=7720 *In isolated margin mode, users can manually increase the margin of the position to widen the gap it has from the opening price. This will give them a better liquidation price. Hence, users can manually increase the margin to lower the risk of the position when risk limit is high. (2) Liquidation Price (cross margin mode) Liquidation condition: Equity in cross margin account (excluding margin and unrealized PNL in isolated margin mode, and all order margin) ≤ Maintenance Margin + Liquidation Fees When the margin rate = 100%, liquidation will be triggered and the price of the forced liquidation is derived from the equation. (In the example below, liquidation fees will be omitted in the calculation process.) Forced Liquidation Price = (Average Short Position Opening Price * Short Position Quantity * Position size – Average Long Position Opening Price * Long Position Quantity * Position size – Cross Margin Position Maintenance Margin + (Wallet Balance – Position Margin in Isolated Margin Mode – Order Margin + Unrealized PNL of other futures positions in cross margin mode) / (Short Position Quantity * Position size – Long Position Quantity * Position size) A user buys in 10,000 cont. of BTCUSDT perpetual futures at 8,000 USDT with an initial leverage multiple of 25x, and their wallet balance is 500 USDT. Note that this is the user’s only long position in cross margin mode, and there are no other positions in isolated margin mode or pending orders. (Assume the position of the 10,000 cont. is at 1st tier of risk limit with a maintenance margin of 0.5%.) Position Maintenance Margin in Cross Margin Mode = 8,000 x 10,000 x 0.0001 x 0.5% = 40 USDT; The forced liquidation price can be calculated as below: Forced Liquidation Price =（0 * 0 * 0.0001 – 8,000 x 10,000 x 0.0001 – 40 +（500 – 0 – 0 + 0））/（0 * 0.0001 – 10000 x 0.0001）= 7,540 USDT *Different from isolated margin mode, the liquidation price in cross margin mode may change from time to time as the margin might be affected by positions of other trading pairs. In cross margin mode, the initial margin of every position is independent, but the margin is shared. The unrealized PNL of each position may affect the cross margin account equity. When there are multiple cross margin positions in both long and short positions under the same futures, the liquidation price for the two positions will be the same. <h1>II. About Risk Limit</h1> In a highly volatile trading environment, a trader holding a large position with high leverage will likely incur the significant risk of deficit loss. If the insurance fund is depleted, the auto-deleveraging system may be triggered, creating additional risk for other traders. Therefore, the risk limit mechanism is applied to all trading accounts in MEXC. The system uses a tiered margin model for risk control and the leverage multiple depends on the size of the position. The larger the position, the lower the available leverage multiple. Users may adjust the leverage multiple themselves. The initial margin rate is calculated based on the leverage multiple adjusted by the user. <ul><li style="font-weight:400">Position Limit, Maximum Leverage, and Initial margin rate</li></ul> Before opening a position, users are required to adjust the leverage multiple. If the user did not adjust the leverage, the MEXC default leverage multiple of 20x will be applied. However, users can still adjust the multiple. The leverage multiple determines the position limit, where the higher the leverage multiple, the lower the position limit. When the user adjusts the leverage multiple, an alert regarding the position limit will pop out as shown below: <h1 class="wysiwyg-text-align-center"> <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428231353592a42TwZ7A3A4SOf.png" alt="3en.png" width="231" /></h1> <ul><li style="font-weight:400">Maintenance margin rate</li></ul> The maintenance margin rate is not calculated based on the user's adjusted leverage multiple, but the user's position size, which means that the maintenance margin rate is not affected by the leverage multiple. The system divides the position amount into several tiers according to the basic risk limit and incremental amount of the futures. Different maintenance margin rates are applied to different tiers, where the larger the position amount, the higher the maintenance margin rate. (For risk limit details of each futures, kindly check Risk Limit under Futures Information.) The liquidation price is affected directly by the maintenance margin. Therefore, to avoid liquidation, we strongly recommend users to close their positions before the margin balance drops to the maintenance margin level. Please note that under abnormal price fluctuations and volatile market conditions, the system will take additional measures to maintain market stability, including but not limited to: <ul><li style="font-weight:400">Adjustment of maximum leverage</li><li style="font-weight:400">Adjustment of position limits for different tiers</li><li style="font-weight:400">Adjustment of maintenance margin rate of different tiers</li></ul> <ul><li style="font-weight:400">Examples of Risk Limit Mechanism</li></ul> Using BTCUSDT perpetual futures as an example: <table><tbody><tr><td> Tier </td><td> Maximum Leverage </td><td> Holding Positions </td><td> Maintenance Margin Rate </td></tr><tr><td> 1 </td><td> 200x </td><td> 0～525,000 cont. </td><td> 0.4% </td></tr><tr><td> 2 </td><td> 111x </td><td> 525,000～1,050,000 cont. </td><td> 0.8% </td></tr><tr><td> 3 </td><td> 76x </td><td> 1,050,000～1,575,000 cont. </td><td> 1.2% </td></tr><tr><td> 4 </td><td> 58x </td><td> 1,575,000～2,100,000 cont. </td><td> 1.6% </td></tr><tr><td> 5 </td><td> 47x </td><td> 2,100,000～2,625,000 cont. </td><td> 2% </td></tr></tbody></table> Assume the risk limit tiers for BTCUSDT perpetual futures are as shown above. (The figures shown are only an example. To find the actual figures, kindly refer to the risk limit tiers of respective futures.): (1) Leverage multiple determines the user’s position limit When the leverage is adjusted to 200x, it corresponds to the 1st tier of risk limit. The user’s position limit at this time would be 525,000 cont. (including no. of contracts the user is already holding and unfilled open orders). When the user's leverage is adjusted to 50x, it corresponds to the 4th tier of risk limit (47 < user’s leverage ≤ 58). The user’s position limit at this time would be 2,100,000 cont. (including no. of contracts the user is already holding and unfilled open orders). (2) Maintenance margin rate at different tiers based on position size User A buys in 80,000 cont. of BTCUSDT perpetual futures at 10,000 USDT with a leverage multiple of 50x. At this point, the user holds 80,000 cont., which corresponds to the 1st tier of risk limit (no. of open positions: 0 - 100,000 cont.). Hence the user’s position's maintenance margin rate at this point is 0.5%. Later on, as the price of BTCUSDT perpetual futures rises, User A continues to buy in 40,000 cont., meaning the user is holding 120,000 cont. now. This corresponds to the 2nd tier of risk limit (no. of open positions: 100,000 - 200,000 cont.). Hence the position maintenance margin rate is 1%. At this point, if the user’s position is under liquidation risk, liquidation will be triggered. As it is in the higher tier, liquidation by tier will be activated. Position of 20,000 cont. will be liquidated first, lowering the no. of open positions to 100,000 cont. This will lower the risk limit from the 2nd tier to 1st tier and the maintenance margin rate from 1% to 0.5%. The condition of the remaining positions will be monitored and the remaining positions will be liquidated if they remain under liquidation risk. If not, the positions will be kept. Find us on Chinese Telegram:<a href="https://t.me/MEXC_ZH">https://t.me/MEXC_ZH</a> Chinese Twitter:<a href="https://twitter.com/mexczh">https://twitter.com/mexczh</a> English Telegram:<a href="https://t.me/MEXCEnglish">https://t.me/MEXCEnglish</a> English Futures Telegram:<a href="https://t.me/MEXCFutures">https://t.me/MEXCFutures</a> English Twitter:<a href="https://twitter.com/MEXC_Global">https://twitter.com/MEXC_Global</a> English Futures Twitter:<a href="https://twitter.com/MEXCDerivatives">https://twitter.com/MEXCDerivatives</a> Facebook:<a href="https://www.facebook.com/mexcglobal">https://www.facebook.com/mexcglobal</a> Instagram:<a href="https://www.instagram.com/mexcglobal/">https://www.instagram.com/mexcglobal/</a> Medium:<a href="https://medium.com/mexcglobal">https://medium.com/mexcglobal</a> Discord:<a href="https://discord.gg/agZNfksc2T">https://discord.gg/agZNfksc2T</a> Buy USDT now：<a href="https://otc.mexc.com/">https://otc.mexc.com/</a> Create your own referral link today and start inviting friends to enjoy great rebates:<a href="https://www.mexc.com/invite">https://www.mexc.com/invite</a> Enjoy trading on MEXC. The MEXC Team

MEXC Future Trading Modes

2020-06-08

#FAQ

<ol> <li> Position Modes</li> </ol> (1) Hedge Mode In hedge mode, users must specify whether to open or close a position when placing an order. Users can hold positions in both long and short directions at the same time under the same futures, and the leverages for the long/short positions are independent. In each futures, all long positions are combined, and all short positions are combined. When holding positions in both long and short directions, the positions need to occupy the corresponding margin according to the risk limit level. For example, in BTCUSDT futures, users can open a long position with 200x leverage and a short position with 200x leverage at the same time. (2) One-Way Mode In one-way mode, users do not need to specify whether to open or close a position when placing an order, but only need to specify whether they are buying or selling. Also, users can only hold positions in one direction under each futures at all times. When holding a long position, the sell order will be closed once it is filled, and when the number of filled sell orders exceeds the number of long positions, a short position will be opened in reverse. <ol start="2"> <li> Margin Modes</li> </ol> (1) Isolated Margin Mode The maximum loss of an isolated position is limited to the initial margin and additional position margin used by the isolated position. In the event of liquidation of the position, the user will only lose the margin of the isolated position, and the available balance of the account will not be used as additional margin. By isolating the margin used on a position, you can limit losses on that position to its initial margin amount, which is helpful if your short-term speculative trading strategy fails. Users can manually add margin to isolated positions to optimize the liquidation price. (2) Cross Margin Mode Cross margin mode refers to using all the available balance of the account as a margin to guarantee all cross positions and prevent liquidation. In this margin mode, when the net asset value is insufficient to meet the maintenance margin requirement, liquidation will be triggered. If the cross position is liquidated, the user will lose all assets in the account except the margin of other isolated positions. <ol start="3"> <li> Modify Leverage</li> </ol> At present, hedge mode allows users to use different leverage multipliers for their positions in long and short directions. Any leverage multiplier can be modified within the allowed range of the futures leverage multiplier. It also allows switching of margin mode, e.g. switching from isolated mode to cross margin mode. Please note that at present, if the user has a position in cross margin mode, it cannot be switched to isolated margin mode.

Tutorial for MEXC New-Version Futures

2020-06-05

#Futures

1. Login Visit MEXC official website <a class="ql-link ql-author-20914703" href="https://www.mexc.ai" target="_blank" rel="noopener noreferrer">https://www.mexc.com </a>and select [Futures Markets] under the [Derivatives] menu to do real contract trading. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428232723206IHOrnACt9A4bzr.png" alt="1.png" /> 2. Please learn the swap interface carefully. It mainly includes contract information, trading pairs, price information, position and order information, depth picture and limit / stop-limit order window. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428232724846oMQK7G8ltF4o0Y.png" alt="2.png" /> 3. Trading (1) MEXC Swap includes USDT swap and inverse swap. USDT swap takes USDT as margin, while inverse swap takes the corresponding cryptocurrency as margin. Users can trade either of them according to demand. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428232726285FPvUgZ3JIyq285.png" alt="Trading_1.png" /> (2) Asset Transfer. If the contract balance is insufficient, users can transfer the asset from the spot account to the contract account. If there’s insufficient balance in the spot account, users can deposit or do OTC trading. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202304282327276855IuePHtZlzmJqE.png" alt="Transfer.png" width="300" height="705" /> (3) Place an order at the order window and click [Buy] or [Sell]. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428232729098A2mGOtPEbw6r2x.png" alt="Order.png" width="300" height="604" /> 4. Leverage MEXC Futures provides 1 - 125x leverage. The leverage multiplier is different based on the specific product. The leverage multiplier is determined by the initial margin and maintenance margin, and the leverage multiplier determines the minimum asset required to open or maintain a position. You can check the minimum initial margin and maintenance margin required for all contract products here. **MEXC Swap now supports users to modify leverage multiplier in both long and short directions under isolated margin mode. [How to modify multiplier] For example, the leverage multiplier for a user’s long position is 20X, and the short position is 100X. To lower hedging risks, the user wants to adjust the 100x short position to 20x. <img src="https://support.mexc.com/hc/article_attachments/4408124627609/Short_100x.PNG" alt="Short_100x.PNG" /> Click [Short 100x] and adjust the leverage multiplier you prefer. Here we adjust it to 20X and click [Confirm]. <img src="https://support.mexc.com/hc/article_attachments/4408124640409/20x.PNG" alt="20x.PNG" /> After adjustment, the leverage multiplier for the short position turns to 20X. <img src="https://support.mexc.com/hc/article_attachments/4408132879001/after_20x.PNG" alt="after_20x.PNG" /> 5. Cross margin The cross margin refers to the use of all available balances in the account as margin to avoid forced liquidation. Any other position that has achieved profit can also be margin for losing positions. The cross margin includes the initial margin and available balance of the contract account, and the losing balance will not be margin to other cross positions. MEXC contract now supports the adjustment from isolated margin to cross margin, but not from cross margin to isolated margin. 6. Isolated Margin Under isolated margin mode, even if the position is liquidated, the maximum loss will only be the position’s initial margin and the added margin. The available balance will not be used as a margin. Therefore, if the investing strategy is wrong, isolated margin mode will limit your loss. Users can add margin manually to increase/decrease the liquidation price. If a user adjusts the leverage multiplier after adding margin, the margin added will be reset. *By default, Futures is under isolated margin mode. Click [Cross] to turn the contract into cross margin mode. <img src="https://support.mexc.com/hc/article_attachments/4408124658585/cross.PNG" alt="cross.PNG" /> *MEXC contract now support the adjustment from isolated margin mode to cross margin mode, but not vice versa. [How to adjust?] MEXC Contract supports users to adjust leverage multiplier in either long or short direction simultaneously. Users can adjust to any leverage multipliers under the isolated margin mode. For example, if a user holds 20x long for BTC/USDT swap in isolated mode, and he wants to adjust the isolated mode into cross margin mode. He can first click [Long 20x], and then [Cross], at last [Confirm]. 7. Open Long/Short (1) Open long If the trader judges that the market price will rise in the future, he can buy long of the contract. 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". (2) Open short If the trader judges that the market price will fall in the future, he can sell short of the contract. Open short is actually selling the contract at the right price, waiting for the market price to fall and then buying to earn the difference, referred to as “sell first and then buy”. 8. Order type MEXC Contract supports various order types to satisfy the trading demand of different users. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428232731329L3qtkuPcS2SQ3I.png" alt="Order_Type.png" /> 1. Limit order Users can place an order at a limit price, and the order will be filled if the market price reaches the limit price. 2. Best Bid and Offer (BBO) Users do not need to set a price, and orders will be filled instantly at the best market price at the time. 3. Trigger-limit There's "Trigger Price" and "Price". When the market price meets the "Trigger Price", the system will put the order at the "Price", which is the limit price. 4. Post Only Post Only means that the orders placed by the users will not be filled immediately. Hence, the users will always be the maker who can enjoy the benefits as liquidity providers. 5. Immediately or cancel (IOC) The limit has to be filled completely at the limit price. If not, the order will be cancelled. It cannot be partially filled. 6. Market-to-Limit (MTL) The order will be filled at the best price and the unfilled order will be converted into a limit order. 7. Set Stop-Limit MEXC Futures supports setting Take-profit and Stop-loss prices at the same time. Take short BTCUSDT as an example, open a short position at the price of 10,300 USDT, fill in the Take-profit price at 10200, the Stop-loss price at 10400, and click on [Short] to set both Take-profit and Stop-loss prices. What are the advantages of Futures? For example, suppose that traders A and B participate in BTC trading at the same time, A uses BTCUSDT Futures, B buys spot directly (equivalent to no leverage). The BTC price at the time of opening position is 7000 USDT, the opening value is 1 BTC, and the face value of BTCUSDT Futures is 0.0001 BTC. <div class="ql-long-20914703"> Open Long </div> If the BTC price rises to 7500 USDT, we compare the earnings of A and B: <table></table> <table><tbody></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Project </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> A- Futures </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> B - Spot Trading </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Open value </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Opening position Value </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 10,000 contracts (about 1BTC) </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 1BTC </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Leverage multiple </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 100 times </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> without leverage (1x) </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Position margin </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 70 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Earnings </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 500 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 500 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Yield rate </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 714.28% </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7.14% </td></tr></tbody></table> <div class="ql-long-20914703"> </div> <div class="ql-long-20914703"> Open Short </div> If the BTC price drops to 6500 USDT, we compare the A and B earnings: <table></table> <table><tbody></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Project </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> A- Futures </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> B - Spot Trading </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Open value </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Opening position Value </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 10,000 contracts (about 1BTC) </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 1BTC </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Leverage multiple </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 100 times </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> without leverage (1x) </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Position margin </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 70 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7000 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Earnings </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 500 USDT </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 500 USDT </td></tr></tbody></table> <table><tbody><tr></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> Yield rate </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top" width="216"> 714.28% </td></tr></tbody></table> <table><tbody><tr><td class="ql-sheet-cell ql-vertical-top"> 7.14% </td></tr></tbody></table> If you need more information about the calculations, use the "Calculator" in the upper right corner of our trading page. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202304282327326862IWqnzTIiwako7.png" alt="calculator.png" />

MEXC USDT-Margined Swaps Operation Guide (Web)

2020-06-05

Login 1. Visit the MEXC website at www.mexc.com, click on [Futures] and select [Perpetual Futures] - [USDT-M Perpetual Futures] to enter the live futures trading page. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230620175210867eIENyhdVx7ZfhW.png" width="807" /> 2. Please browse the MEXC perpetual contract trading page carefully to understand the contents of each section. This includes: basic market details, K-line, order book information, depth chart, position and order information, and asset information. You can also view futures details, which allows you to view the risk limit, trading rules, index price, fair price, funding rate history, and insurance fund account status of the contract. You can also view order-related information through the orders. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202306201752109312pSw3jvmg20WTJ.png" width="754" /> *Click [Futures Trade] [Orders] for more details 3. Trade （1）MEXC perpetual contract consists of USDT-M contracts and COIN-M contracts. USDT-M contracts use USDT as margin, while COIN-M contracts use the corresponding crypto as margin. Users can choose different trading pairs to trade according to their needs. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012801946aNenzGDUGIv29U.png" alt="en311.png" width="255" /> （2）If there are not enough funds available, users can transfer funds from their spot account to their futures account. If there are no funds in the spot account, users have to top up or trade in fiat. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012803400vtFdWzDsF89J0X.png" alt="en321.png" width="293" /> （3）To submit an order, fill in the order information in the order section (including selecting the order type, price, and quantity) and then submit the order. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012804770RlmhytBrzuQl40.png" alt="en331.png" width="247" /> 4. Leverage MEXC perpetual contracts support up to 200x leverage, and the maximum leverage varies by product. Leverage is determined by the initial margin and maintenance margin levels. They determine the minimum amount of capital you need to open and maintain a position. * The current two-way mode allows users to use different leverage multiples for long and short positions, and also supports margin mode switching. This means users can switch between cross margin and isolated margin mode. [How to change multiplier] For instance, the multiplier for the long position is 3X and 20X for the short position. In order to reduce the risk hedging, it is recommended that users change the long position from 3X to 20X. Click the [Long 3X] button, and then manually adjust the multiplier. Here, we adjust it to 20X,. Click [Confirm]. The leverage multiplier of the long position has changed to 20X. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012806081olqBhMcj3p0Z7U.png" alt="en4.png" width="323" /> 5. Cross Margin Mode Cross margin refers to the use of all available balance in the account as margin to avoid liquidation. In this margin mode, liquidation will be triggered when the equity is insufficient to meet the maintenance margin requirement. If a cross margin position is liquidated, the user will lose all assets in the account except for the margin of the isolated margin positions. 6. Isolated Margin Mode 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. By isolating the margin used for a position, you can limit losses on that position, thus helping you if your short-term speculative trading strategy fails. Users can manually add margin for their isolated margin positions to optimize the liquidation prize. *The system default is isolated margin mode. It will change to cross margin mode when the option is clicked. *Currently, MEXC perpetual contracts allow users to change from isolated margin mode to cross margin mode; note that users can’t change cross margin positions to isolated margin positions. [Change to Isolated Margin] Currently, users can use different leverage multipliers for both long and short positions, and can modify any leverage multiplier in isolated margin mode. [How to Change] For instance, there is a current long BTCUSDT position with 20X leverage. If you want to change the isolated margin mode to cross margin mode, click the [Long 20X] button, then click the [cross margin] button, and finally click [Confirm]. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202304290128074357unQvcaVo17KEP.png" alt="en6.png" width="266" /> 7. Long & Short （1）Buy Long A trader will buy more contracts if he judges that the market price will rise in the future. Going long means buying a contract at a suitable price, waiting for the market price to rise, and then selling (closing the position) to earn the difference. It is similar to spot trading and is referred to as "buy first and sell later". （2）Sell Short A trader will sell contracts if he judges that the market price will fall in the future. Sell short means selling a contract at a suitable price and waiting for the market price to fall before buying (closing the position) to earn the difference. It is referred to as "sell first and buy later". If you have completed the above steps, congratulations, you have traded successfully! 8. Order A variety of order modes are available for MEXC futures, enough to fully meet all traders’ trading needs. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012808774tEKqwoj1ASIvDV.png" alt="en8.png" width="234" /> （1）Limit Order Limit orders allow the user to set the order price and the order will be filled at the order price or at a price better than the order price. When using limit order, users can also set the time in force according to their trading needs, with the default being GTC: - GTC (Good-Til-Canceled): This type of order will remain in effect until it is completely filled or canceled. - IOC (Immediate-Or-Cancel): This type of order will be canceled if the order is not filled immediately at the specified price. - FOK (Fill Or Kill): This type of order will be canceled immediately if the order is not filled in full. （2）Market Order Market orders will be filled at the best price available in the order list at the time, eliminating the need to set your own price and allowing orders to be filled quickly. （3）Trigger Order Users set a trigger price. When the base price (market price, index price, fair price) reach the trigger price, the order will be placed at the order price (support limit or market price). （4）Post Only Post only orders will not be immediately traded in the market, ensuring that the user is always a Maker. At the same time, if the order is filled with an existing order, the order will be immediately revoked. （5）Trailing Stop Order A Trailing Stop Order is a strategy order that tracks the market price. Its trigger price may change with market volatility. This trigger price calculation: Sell, Actual Trigger Price = Market's Historically Highest Price - Trail Variance (Var.), Or Market's Historically Highest Price * (1 - Trail Variance %) (Ratio); Buy, Actual Trigger Price = Market's Historically Lowest Price + Trail Variance, Or Market's Historically Lowest Price * (1 + Trail Variance %). At the same time, the user can select the price at which the order is activated. The system will start to calculate the trigger price only after the order is activated. （6）Stop Limit Take Profit MEXC perpetual contract supports opening positions while setting stop loss and take profit. To short BTCUSDT, for example, the entry price 21850 USDT, fill in the take profit price as 21900, stop loss price 21800, and click sell. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230429012810123MsKH7mDWrolS4y.png" alt="en86.png" width="223" /> What are the advantages of using perpetual contracts for investment purposes? Let's take the example of a USDT-M contract: Suppose trader A and B participate in BTC trading at the same time, A uses MEXC perpetual contract while B buys spot directly (equivalent to 1 times without opening leverage). The entry price of BTC is 7000 USDT with the entry value of 1 BTC. MEXC perpetual contract BTCUSDT single contract value is 0.0001BTC. Buy/Long Example If the price of BTC increase to 7500 USDT, let’s compare A and B’s earnings: <table><tbody><tr><td> Project </td><td> A-Perpetual Contracts </td><td> B-Spot Trade </td></tr><tr><td> Entry Price </td><td> 7000 USDT </td><td> 7000 USDT </td></tr><tr><td> Entry Value </td><td> 10000 contr. (approx. 1 BTC) </td><td> 1 BTC </td></tr><tr><td> Multiplier </td><td> 100X </td><td> 1X (no leverage) </td></tr><tr><td> Funds Used </td><td> 70 USDT </td><td> 7000 USDT </td></tr><tr><td> Earnings </td><td> 500 USDT </td><td> 500 USDT </td></tr><tr><td> Yield Rate </td><td> 714.28% </td><td> 7.14% </td></tr></tbody></table> Sell/Short Example If the price of BTC decrease to 6500 USDT, let’s compare A and B’s earnings: <table><tbody><tr><td> Project </td><td> A-Perpetual Contracts </td><td> B-Spot Trade </td></tr><tr><td> Entry Price </td><td> 7000 USDT </td><td> 7000 USDT </td></tr><tr><td> Entry Value </td><td> 10000 contr. (approx. 1 BTC) </td><td> 1 BTC </td></tr><tr><td> Multiplier </td><td> 100X </td><td> 1X (no leverage) </td></tr><tr><td> Funds Used </td><td> 70 USDT </td><td> 7000 USDT </td></tr><tr><td> Earnings </td><td> 500 USDT </td><td> 500 USDT </td></tr><tr><td> Yield Rate </td><td> 714.28% </td><td> 7.14% </td></tr></tbody></table> By comparing the above cases, we find that A used 100 times leverage and only 1% ofB's margin to get the same return, making a big profit from a small amount. If you need to know more about the data calculation, you can use the "Calculator" on our trading page. <img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230620174927902Jo9sfjXU0uyDw9.png" width="515" /><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230620174927934FAl5ceKGZGWFMB.png" width="517" />