Contract trading offers MEXC users an advanced method for trading digital currencies. Unlike spot trading, contract trading involves unique trading logic and position-opening mechanisms. This guide aims to help beginners transition from novice to proficient traders by providing a clear, step-by-step approach to contract trading.
1. USDⓈ-M and Coin-Margined Contracts
MEXC's contract trading platform supports two types of contracts:
- USDⓈ-M Contracts: Settled in USDT, allowing multi-currency contract trading with just USDT holdings.
- Coin-M Contracts: Settled in cryptocurrencies like BTC or ETH.
- For this guide, we focus on USDⓈ-M contracts.
2. Fund Transfer
Before trading, ensure your Contract Account has sufficient assets (e.g., USDT).
2.1 Transfer Process
- Open MEXC App → Navigate to Assets → Transfer.
- Select Spot Account to Contract Account.
- Choose USDT as the currency.
- Enter the transfer amount.
- Confirm the transfer.
3. Placing Orders
Your profitability depends on Position Mode, Margin Mode, and Leverage Settings. Follow this workflow:
- Configure the above settings → Select order type → Set parameters → Execute (Buy/Long or Sell/Short).
3.1 Position Mode
- Hedged Mode: Hold both long/short positions for one contract.
- One-Way Mode: Hold only one position per contract.
- Note: Adjusting position mode is restricted if active orders exist.
3.1.1 Configuration
- Tap More → Preferences → Position Mode.
- Choose Hedged or One-Way.
3.2 Margin Mode
- Isolated Margin: Each position is independent; no auto-top-up from other accounts.
- Cross Margin: Uses all available balance to avoid liquidation.
3.2.1 Configuration
- Tap Isolated/Cross icon → Toggle mode → Enable Apply to All Contracts.
3.3 Leverage Mode
- Simple Mode: Uniform leverage for long/short.
- Advanced Mode: Custom leverage per direction.
- Restriction: No adjustments with active orders.
3.3.1 Configuration
- More → Preferences → Leverage Mode.
- Select Simple or Advanced.
3.4 Order Types
3.4.1 Limit Order
- Logic: Set price → Contract size → Execute.
- Tips: Orders expire as GTC, IOC, or FOK.
3.4.2 Market Order
- Logic: Set size → Optional MTL (Market-to-Limit) → Execute.
- MTL: Converts unfilled parts to limit orders.
3.4.3 Stop-Limit Order
- Logic: Set trigger/limit prices → Size → Execute.
- Use Case: Automate entries above/below market price.
3.4.4 Trailing Order
- Logic: Set offset (%) → Size → Optional activation price.
- Feature: Tracks price peaks/troughs over 10 minutes.
3.4.5 Post-Only Order
- Logic: Set price → Size → Execute.
- Benefit: Earn maker fees by providing liquidity.
3.5 Maximum Position Logic
- Formula: Max contracts = Available margin / [Price × Contract value × (Initial margin + 2 × Fee rate)].
- Units: Contracts, USDT value, or Coin amount.
4. Order Monitoring
4.1 Unfilled Orders
Check Open Orders or Order History.
4.2 Filled Orders
Monitor Positions to manage trades.
4.2.1 Manual Closing
- Options: Close manually or set Take Profit/Stop Loss.
4.2.2 Liquidation
- Cause: Margin falls below maintenance level.
- Prevention: Monitor margin ratios closely.
5. Conclusion
This guide covers fund transfers, order placement, and monitoring. Beginners should start with simplified workflows (e.g., classifying orders by fill probability). For community discussions, join MEXC’s official channels.
Disclaimer: Cryptocurrency trading involves high risks. This content is not financial advice.
FAQ
Q1: What’s the difference between isolated and cross margin?
A1: Isolated limits risk to one position; cross uses all balances to prevent liquidation.
Q2: Can I adjust leverage with open positions?
A2: No—leverage changes require no active orders.
Q3: How do trailing orders work?
A3: They dynamically adjust triggers based on recent price highs/lows.
Q4: What happens if my order isn’t filled?
A4: Check expiry settings (e.g., GTC vs. IOC).
Q5: How is maximum position size calculated?
A5: It depends on available margin, contract value, and fees.
Q6: Why was my position liquidated?
A6: Likely due to insufficient margin during high volatility.