MEXC contract skills

MEXC's perpetual contracts allow traders to speculate on the future price of assets without purchasing them, making them ideal for profiting from market volatility.

Nov 08, 2024 at 07:35 pm

MEXC Contract Skills: A Comprehensive Guide to Trading on MEXC

MEXC Global is a leading cryptocurrency exchange that offers a wide range of trading options, including perpetual contracts. Perpetual contracts are a type of derivative that allows users to speculate on the future price of an asset without having to take ownership of the underlying asset. This makes them a popular choice for traders who are looking to profit from market volatility.

If you're new to MEXC contracts, this guide will provide you with everything you need to know to get started. We'll cover everything from the basics of how perpetual contracts work to more advanced topics such as risk management and trading strategies.

Step-by-step Guide to MEXC Contract Trading

1. Create an Account
   Before you can start trading MEXC perpetual contracts, you need to create an account. The process is quick and easy, and you can sign up for free. One you have an account, you can deposit funds into your account and start trading.
2. Choose a Trading Pair
   Once you have funded your account, you need to choose a trading pair. A trading pair is simply two cryptocurrencies that are being traded against each other. The most popular trading pairs on MEXC include BTC/USDT, ETH/USDT, and BNB/USDT.

3. Set Up a Position
   Once you have chosen a trading pair, you need to set up a position. A position is simply a contract that you enter into with another trader to buy or sell the USDT value of a certain coin or token. There are two possible types of positions: "long" and "short." Below is an example of setting up a long position with a trading pair of BTC/USDT, wherein the user believes the price of BTC will increase.

   • Long

     • Order Side: Set to "Buy."
     • Leverage: The leverage function allows you to borrow funds from MEXC to magnify your position; however, always use leverage with caution.
     • Price: Enter the BTC price you wish to buy at, which is your entry price.
     • Volume: Adjust the volume of your position to your risk tolerance, as it determines how many contracts of BTC/USDT you want to buy.
     • Order Type: Choose the "Limit" order type to specify the entry price and avoid slippage.

4. Enter a Price
   Once you have set up a position, you need to enter a price. This is the price that you are willing to buy or sell the crypto asset in the contract at. Market Price: This option matches your order with current market prices. Limit Price: In this option, you specify a target price, and your order will only be executed when the market price reaches your target.
5. Determine the Number of Contracts
   Now, you need to decide how many contracts you want to trade. The number of contracts you trade will depend on your risk tolerance and the amount of funds you have available.
6. Submit Your Order
   Once you have entered all of the necessary information, you can click the "Buy" or "Sell" button to submit your order.
7. Monitor Your Position
   Once you have submitted your order, you can monitor it in the "Positions" tab. This tab will show you the status of your order, including the current price of the crypto asset and the profit or loss you have made. To close your position, you click "Close Long", if you hold a long position, or "Close Short", if you hold a short position.

8. Manage Your Risk
   MEXC contract trading can be a profitable way to get involved in the crypto market, but it is important to remember that it also comes with a high level of risk. Below are risk management tips:

   • Use Stop-Loss Orders: Stop-loss orders are a crucial risk management tool that allows you to specify a price at which your position will be automatically closed if the price of the asset moves against you.
   • Don't Trade More Than You Can Afford to Lose: It's important to remember that you should never trade with more money than you can afford to lose.
   • Educate Yourself: The more you know about MEXC contract trading, the better equipped you will be to make profitable trades.