MEXC offers versatile trading options for futures traders, accommodating diverse strategies through two primary contract types: USDT-M perpetual futures and Coin-M perpetual futures. Traders can also leverage advanced features like one-way/hedge modes, isolated/cross margin, and adjustable leverage (up to 500x) to optimize their positions. Below, we break down each component for clarity and strategic flexibility.
1. USDT-M vs. Coin-M Perpetual Futures
1.1 USDT-M Perpetual Futures
- Denomination: Quoted and settled in USDT (Tether).
- Advantage: Stablecoin-based valuation minimizes crypto volatility impact. Profits/losses are calculated in USDT, simplifying fiat-equivalent assessments (e.g., 1,000 USDT ≈ 1,000 USD).
- Use Case: Ideal for traders seeking stable value benchmarks amid market fluctuations.
1.2 Coin-M Perpetual Futures
- Denomination: Margin and PNL calculated in crypto (e.g., BTC, ETH), with USD as the quote unit.
- Contract Size: Fixed USD value per contract (e.g., 100 USD per Bitcoin-M contract).
- Use Case: Suited for traders preferring direct crypto exposure without stablecoin conversion.
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2. Position Modes: One-Way vs. Hedge
2.1 One-Way Mode
- Positions: Hold either long (price rise) or short (price fall) in a futures pair.
- Risk: PNL directly tied to asset price direction.
2.2 Hedge Mode
- Positions: Simultaneously hold long and short positions in the same contract.
- Leverage: Independently adjustable for each direction (e.g., long at 25x, short at 50x).
- Margin: Allocated separately for combined long/short positions per risk tier.
3. Margin Modes: Isolated vs. Cross
3.1 Isolated Margin
- Account Structure: Each position has a dedicated margin pool.
- Risk Control: Losses limited to the margin of the specific position.
- Flexibility: Manual margin additions to optimize liquidation prices.
3.2 Cross Margin
- Account Structure: Shared margin across all positions.
- Risk: Losses may affect the entire account balance.
- Note: MEXC allows switching from isolated → cross margin but not vice versa.
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4. Leverage Adjustment
Range:
- USDT-M: 1x–500x
- Coin-M: 1x–200x
- Flexibility: Adjustable per position in isolated mode; fixed in cross margin.
5. Key Takeaways
MEXC’s suite of features—multi-contract support, adaptive margin modes, and high leverage—empowers traders to execute precise strategies while managing risk.
FAQs
Q: Can I switch margin modes mid-trade?
A: Only from isolated to cross margin, not the reverse.
Q: Which contract type suits beginners?
A: USDT-M offers simpler fiat-equivalent calculations, reducing complexity.
Q: How does hedge mode mitigate risk?
A: By balancing long/short exposures, it hedges against volatile price swings.
Q: Is 500x leverage advisable for new traders?
A: No—high leverage amplifies both gains and losses; start with lower multipliers.
Disclaimer: This content is for educational purposes only and not financial advice. Conduct independent research before trading. MEXC is not liable for investment decisions.
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