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How to Select Futures Trading Pairs

2024.02.22 MEXC

As one of the leading global digital currency exchanges, MEXC is committed to providing users with high-quality investment options. Given the extensive array of futures trading options, novice users may find it difficult to select appropriate investment targets. This article aims to provide MEXCers with insights to help you choose the right futures trading pairs.

1. Trading Objectives

From the perspective of trading behavior, futures traders can generally be divided into two categories: "trend traders" and "day traders." In essence, the former places more emphasis on long-term profitability, seeking to exchange time for greater profit potential, while the latter focuses more on short-term profits, aiming to take quick profits and secure gains. Trend traders hope to capture long-term trends and do not pursue daily trading, often holding positions in a single asset for several days, weeks, or even months. Day traders, on the other hand, typically complete trades within a single trading day. Therefore, trend trading is suited for long-term investment, while day trading is better suited for short-term investments.

The MEXC futures platform provides futures trading pairs for both of these types of traders. BTC/USDT and ETH/USDT futures trading pairs, which lead in liquidity indicators, have demonstrated highly favorable upward trends since the start of 2024. Both are suitable options for long-term investment.

Besides the futures trading pairs involving tokens that wield significant influence over the market, the cryptocurrency ecosystem's extensive and diversified landscape includes various promising up-and-coming currencies. Some of these assets harbor untapped value through technological innovations within the blockchain realm, constituting inherent catalysts for value appreciation. Moreover, as the altcoin market expands, trading activity for these futures has surged. However, during the initial listing phase, the prices of up-and-coming crypto may be affected by market sentiment and specific events. At the same time, during periods of sideways movement in the prices of leading crypto futures trading pairs, there's a likelihood that futures trading involving such currencies will diverge from the intraday trend. Therefore, for traders, this is a profitable but high-risk investment method. For example, as a new futures trading pair, STRK/USDT can provide a profit margin of over 5% within a day.

2. Risk Tolerance

One of the attractions of futures trading lies in the leverage function. On MEXC, users can trade futures with different maximum leverage multiples. It is worth noting that leverage multiples amplify both profits and risks. Therefore, MEXCers need to choose the appropriate leverage multiple based on the maximum downturn they can withstand. For example, the maximum leverage multiple for the MX/USDT futures trading pair is 125; for the BTC/USDT futures trading pair, it is 200. MEXCers can choose to use high-leverage futures trading pairs to increase profit margins or select futures trading pairs with more conservative leverage multiples to complete transactions (or select a smaller leverage multiple within a futures trading pair to achieve this effect).


MEXC offers Futures Leverage Challenge: Experience leverage from 15x to 200x and share generous futures rewards; for details, please refer to the MEXC Events Calendar.

3. Hedging Risks

In traditional finance, holding futures positions long-term often serves to hedge the risks of holding spot assets. Similarly, there are corresponding crypto pairs in digital currency futures trading. If users hold a certain currency for a long time and in large quantities, during a bear market, holding short futures positions for that currency pair can hedge the downward risk of spot assets. At the same time, since the leverage ratio of futures trading pairs is adjustable, MEXCers can select appropriate margins. For instance, if you hold 1000 MX, with a leverage ratio of 100x, you only need to pay approximately 10 MX as margin to hedge.

4. Summary

The market situation is constantly changing, and users need to assess their investment objectives, as well as factors such as their risk tolerance, to make a rational investment plan. When choosing the right futures trading pairs, MEXC users need to do their "homework": considering their trading skills, economic conditions, and available information, they should opt for futures trading pairs that best align with their expectations.

Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.

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