What Are Prediction Futures?
#Basic
#Futures
#Beginners
1. What are Prediction Futures?
Prediction Futures let traders predict specific outcomes of future cryptocurrency prices. Each Futures contract represents an "Up" or "Down" prediction on an event's result. Currently, you can trade bullish and bearish Prediction Futures. Correct predictions earn a payout, while incorrect ones lose the contract amount.
2. How to Use Prediction Futures on MEXC
Step 1: Access the Prediction Futures Page
Log into your MEXC account and navigate to the Prediction Futures page.
Step 2: Select the Underlying Asset
Choose the asset you wish to trade. Currently, MEXC Prediction Futures only supports BTC and ETH Futures trading.
Step 3: Choose the Expiration Time
Select when the Prediction Futures will expire. Available options: 10m, 30m, 1H, or 1D.
Step 4: Enter the Amount
Input the quantity you want to trade. (Note: The minimum order amount is 5 USDT, and the maximum order amount is 150 USDT.)
You will see the payout amount in USDT, which represents the potential payout of the Prediction Futures.
The cost to enter a Prediction Futures contract equals the contract amount, which also represents your maximum possible loss.
Step 5: Choose the Direction
Decide whether you expect the price to rise or fall by the time the Prediction Futures contract expires:
- Select Up if you predict the index price will rise.
- Select Down if you predict the index price will fall.
Step 6: Review and Confirm
Check the details and click Confirm.
Step 7: Check Closed Trades After Expiration
Once the trade is submitted, wait for the Prediction Futures to expire. After expiration, go to Closed Positions to check the results:
- Entry Price: The index price when you entered the trade.
- Close Price: The index price at expiration.
3. Prediction Futures FAQ
3.1 How are Prediction Futures payouts calculated?
If your Prediction Futures prediction is correct, you will receive a platform-paid amount equal to the fixed payout amount accepted at the time of order submission.
Fixed Payout Amount = Principal Amount + PNL
PNL = Principal Amount × Payout
If your prediction is incorrect, the Prediction Futures expires and you will not receive a payout amount. The principal amount you paid for the Prediction Futures is considered your loss and counts toward the daily loss limit.
If your Prediction Futures result is neither above nor below the entry price (i.e., the expiration price equals the strike price), you will receive a payout amount equal to the contract amount you paid, which is your principal.
The payout amount per Prediction Futures is based on the contract amount and the applicable payout ratio at the time of trade submission.
Example:
If the market payout is 87% and you invest 10 USDT to predict BTC's future price:
- Correct prediction: You receive 18.7 USDT, including 8.7 USDT in profit.
- Incorrect prediction: You lose your 10 USDT principal.
- Draw (no price change): You will get back your 10 USDT with no profit or loss.
Note: Profit = Principal × Payout
3.2 How is the payout calculated?
The payout is internally calculated based on asset volatility and market risk at any given time and may fluctuate. It is determined at the time of trading and remains fixed for that trade. You can view the current payouts for both upward and downward predictions in the trading area.
As shown in the example below, the current payout is 82%. If you make a prediction using 5 USDT and your prediction is correct, you will receive a payout of 9.1 USDT, including 4.1 USDT as profit.
3.3 Are there any trading limits?
- Daily Loss Limit: Each trader has a maximum daily loss limit of 3,000 USDT, which includes potential losses from open orders. The system automatically enforces this limit and prevents you from placing orders that would exceed it. For the daily loss limit, the contract amount paid for open Prediction Futures is considered a potential loss.
- Open Prediction Futures Limit: You can maintain a maximum of 4 open Prediction Futures at any given time.
- Daily Trade Limit: You can make up to 50 Prediction Futures trades per day.
- Price Limits: Each Prediction Futures is subject to price limits to mitigate financial risks. The applicable price limits will be displayed on the platform.
MEXC reserves the right to adjust the daily loss limit, open Prediction Futures limit, and/or price limits at any time at its sole discretion. Any changes will not affect existing open Prediction Futures and will not be announced separately.
3.4 Can I close a Prediction Futures before it expires?
No, Prediction Futures cannot be closed prior to expiration. Once an order is submitted, the trade remains open until it expires.
3.5 How is the close price determined?
The close price is automatically determined based on the price index of the underlying asset at the time the Prediction Futures expires.
3.6 How are Prediction Futures settled?
All Prediction Futures are settled in USDT. If your prediction is correct, the USDT payout is directly credited to your Futures account. If your prediction is incorrect, the expired Prediction Futures loss equals the contract amount you paid and will count toward the daily loss limit (as mentioned above).
3.7 Do Prediction Futures support API trading?
Prediction Futures currently do not support API trading.
4. Risk Warning & Disclaimer
By using MEXC's Prediction Futures, you confirm that you have read, understood, and agreed to the Prediction Futures Risk Disclosure & Disclaimer.
Trading digital assets and related products (such as Prediction Futures) carries significant risks and may result in substantial losses. You are responsible for your own trading decisions and should consult independent advisors if necessary. The past performance of any digital asset or related product does not guarantee future results. You should only invest an amount you are willing to lose.