The Complete Guide to USDT-M Perpetual Futures on MEXC
#Basic
#Futures
#Beginners
The guide is designed to provide both beginners and experienced traders with a comprehensive overview of MEXC's USDT-M futures, offering instructions on how to trade efficiently and safely on MEXC.
1. What are USDT-M futures?
USDT-M futures refer to futures contracts that are pegged to the US dollar stablecoin, USDT, using USDT as both the margin and the currency for calculating profits and losses.
2. MEXC USDT-M Futures Overview
MEXC USDT-M Futures is a type of digital currency derivative with USDT as the pricing and settlement unit. Its prominent features include: ① Support for high leverage trading, with leverage adjustable from 1 to 200x, allowing for the leveraging of small capital for large returns. ② Support for both long and short positions, enabling users to hold long and short positions simultaneously for a single contract, with independent leverage for both long and short directions. When holding long and short positions simultaneously, users need to allocate corresponding margin based on risk limit levels. ③ Multiple margin modes are available for selection, including cross and isolated margin modes, catering to the risk preferences and trading strategies of different users.
Additionally, MEXC has extremely low fees, with a maker fee of 0% and a taker fee of only 0.01%. Furthermore, users can offset the taker fee by using the platform token MX and enjoy an additional 10% discount, thereby reducing trading costs.
3. Trading Operations Guide
3.1 Log in to your MEXC account and select the USDT-M perpetual futures
3.2 Select your trading pair
3.3 Choose margin mode. MEXC supports both isolated margin and cross margin modes.
The differences between the two margin modes are as follows:
In isolated mode, a certain amount of margin is allocated to each position. If the margin of a position falls below the maintenance margin level, the position will be liquidated. Additionally, you can choose to add or reduce margin for this position.
In cross mode, all positions share the margin for the asset. In the event of liquidation, traders may lose all the margin and all positions under this asset.
3.4 Confirm your leverage multiplier
3.5 Choose your order type and set the price and quantity.
MEXC supports five types of order types, namely: ① Limit Order ② Market Order ③ Trigger Order ④ Trailing Stop Order ⑤ Post Only.
① A limit order refers to buying or selling at a specific or better price, but execution is not guaranteed.
② A market order refers to rapid buying or selling at the best available price in the market.
③ A trigger order allows users to pre-set trigger price, order price, and quantity. When the market price reaches the trigger price, the system will automatically place an order at the order price.
④ A trailing stop order submits the trader's set order to the market as a strategy order when the market retraces.
⑤ Post only orders mean the order will not be immediately traded in the market, ensuring that the user is always a maker. If the order is canceled if it would instantly match an existing order.
For more about these five order types and their specific distinctions, please read Placing Different Kinds of Futures Orders
3.6 Choosing Long or Short Positions
3.7 Closing positions
Users have three ways to close positions:
① Clicking [Close All] will cancel all limit orders and close all positions at market price
② Clicking [Flash Close] means closing all positions at once at market price. This function allows for rapid closure of specified positions
③ Enter price and quantity, then click [Close Long]
4. Why Choose MEXC for USDT-M Futures Trading?
4.1 Hold MX to enjoy the lowest trading fees in the industry.
When you transfer MX to your futures account, you can use MX to pay for your USDT-M futures trading fees using the MX Deduction feature, with a 10% discount. If your MX is depleted, the feature is considered disabled. If you hold a spot position of 1,000 MX or more for 15 consecutive days, you can enjoy a 50% discount on futures trading fees.
4.2 Fair Trading with Excellent Market Depth
MEXC has built a reputation for discovering and introducing high-quality projects. Over years of industry experience, MEXC has garnered millions of users worldwide and operates in more than 170 countries and regions. This broad user base contributes to the robustness and equilibrium of MEXC futures trading, ensuring both depth and fairness in the market.
4.3 Superior Security and Stability
MEXC is known as one of the safest exchanges in the industry, offering users multiple security measures such as identity authentication, two-factor authentication, and anti-phishing codes. Furthermore, MEXC's trading system employs a multi-layered and multi-cluster architecture, capable of processing 1.4 million transactions per second, showcasing groundbreaking efficiency and performance.
5. Frequently Asked Questions
5.1 How to Calculate PNL for USDT-M Futures Contracts?
Futures PNL depends on the user's opening price, closing price, and trading volume. For specific calculations, please refer to the article "Margins & PNL Calculations."
5.2 What are the Differences Between USDT-M and Coin-M Futures?
The major difference between USDT-M futures and Coin-M futures lies in the fact that USDT-M perpetual futures' value and PNL calculations are based on USDT as the reference currency, while Coin-M perpetual futures use a specific cryptocurrency (such as Bitcoin or Ethereum) as collateral and for PNL calculations. For further distinctions, please refer to the article "Differences between USDT-M and COIN-M futures."
5.3 Can I Hold Both Long and Short Positions Simultaneously?
Yes, MEXC supports hedge mode, allowing users to hold both long and short positions on the same contract independently with separate leverage ratios.
5.4 What Are the Fee Rates for USDT-M Futures?
The fee rate for placing USDT-M futures orders (Maker) is 0%, and the fee rate for executing trades (Taker) is 0.01%.
5.5 What is the Maximum Leverage Supported by USDT-M Futures?
The maximum leverage supported for USDT-M futures is up to 200x.
5.6 What are the Risks of USDT-M Futures?
USDT-M perpetual futures are exposed to market volatility risks, and leveraged trading may result in losses.
Disclaimer: Cryptocurrency trading involves risk. 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.