How to sell MEXC perpetual contracts

Selling MEXC perpetual contracts involves opening a short position, betting on the future price decrease of the underlying cryptocurrency asset, allowing traders to profit from market downturns.

Nov 12, 2024 at 04:53 am

How to Sell MEXC Perpetual Contracts: A Comprehensive Guide

MEXC perpetual contracts, also known as inverse perpetual contracts, offer traders the opportunity to speculate on the future price of cryptocurrencies without holding the underlying asset. Selling perpetual contracts involves taking a short position, betting that the asset's price will decrease in the future.

Selling MEXC perpetual contracts requires careful planning and execution to maximize profits and minimize losses. This comprehensive guide will provide you with a step-by-step process on how to sell MEXC perpetual contracts effectively.

Step 1: Choose a Trading Pair

The first step in selling MEXC perpetual contracts is choosing a trading pair. MEXC offers a wide range of cryptocurrencies for perpetual contracts trading, including BTC/USDT, ETH/USDT, and BNB/USDT. Choose a trading pair that you are familiar with and has sufficient liquidity to ensure smooth execution of your orders.

Step 2: Fund Your Account

Before you can start selling perpetual contracts, you will need to fund your MEXC account with either cryptocurrency or stablecoins such as USDT. MEXC supports a variety of deposit methods, including bank wire, credit/debit card, and cryptocurrency transfers.

Step 3: Open a Short Position

To sell a MEXC perpetual contract, you will need to open a short position. A short position involves borrowing the underlying asset from the exchange and selling it in the market. You will then profit if the price of the asset decreases in the future.

To open a short position, navigate to the perpetual contracts trading page on MEXC and select the desired trading pair. Enter the amount of the contract you wish to sell and click on the 'Sell' button. The exchange will borrow the underlying asset and execute your short position.

Step 4: Monitor and Adjust

Once you have opened a short position, it is important to monitor the market price and make adjustments as needed. If the price of the asset moves in your favor, you can increase your position size by selling additional contracts. However, if the price moves against you, you may need to reduce your position size or even close it completely to minimize losses.

Step 5: Take Profits or Cut Losses

The final step in selling MEXC perpetual contracts is to take profits or cut losses. When the price of the asset has reached your target profit level, you can close your position and lock in your gains. Alternatively, if the price moves against you and you have incurred a significant loss, you may need to close your position to avoid further losses.

Additional Tips

• Use stop-loss orders: Stop-loss orders are a valuable risk management tool that can help you protect your profits and limit your losses. Set a stop-loss order at a price below your entry price to automatically close your position if the market moves against you.
• Manage your risk: Perpetual contracts involve high leverage, which can amplify both profits and losses. It is crucial to manage your risk carefully by employing proper position sizing and implementing stop-loss orders.
• Monitor funding rates: Perpetual contracts incur a funding rate that can be either positive or negative. Positive funding rates favor short positions, while negative funding rates favor long positions. Monitor funding rates closely to adjust your positions accordingly.
• Use the MEXC trading tools: MEXC provides a suite of trading tools that can assist you in making informed decisions. These tools include real-time market data, charting capabilities, and risk management calculators.
• Stay up-to-date with the market: Keep yourself informed about market news and events that may impact the price of the asset you are trading. By staying informed, you can make more informed trading decisions and react quickly to changing market conditions.