Introduction to Perpetual Contracts on MEXC Exchange
Perpetual contracts are among the most popular derivative products in the cryptocurrency market. This guide explores MEXC Exchange's perpetual contracts, highlighting their unique features compared to other platforms. We'll cover trading fees, funding rates, auto-deleveraging mechanisms, and address common questions.
Key Advantages of MEXC Exchange for Contract Trading
MEXC Exchange stands out in contract trading with three core strengths:
1. Extensive Coin Selection
With 800+ contract coin pairs, MEXC offers the world's most diverse perpetual contract selection.
2. Rapid Listing Speed
MEXC frequently lists new coins faster than competitors, including IEO coins from other exchanges.
3. Strong Security History
Since its 2018 launch, MEXC has maintained a clean security record with no hacking incidents.
| Feature | Specification |
|---|---|
| Contract Coins | 800+ |
| Leverage | 1-125x |
| Trading Fee | 0.02% (maker), 0.06% (taker) |
| Additional Benefits | Available |
Understanding Perpetual Contracts
Perpetual contracts resemble traditional futures but without expiry dates. Users can hold positions indefinitely unless liquidated.
Differences Between Perpetual Contracts and Futures
| Feature | Perpetual Contracts | Futures |
|---|---|---|
| Leverage | 1-125x | 1-50x |
| Settlement | None | Fixed date |
| Interest | Funding rate applies | None |
| Regulation | Crypto exchanges | Futures exchanges |
Step-by-Step Guide to Trading Perpetual Contracts on MEXC
1. Preparation
- Account Registration: Create your MEXC account
- Deposit Funds: Fund your account to begin trading
👉 Start trading on MEXC Exchange with competitive fees
2. Navigating to Contract Trading
- Click "Derivatives" on the homepage
- Select "Contract Trading"
3. Order Placement Settings
Position Mode
- Cross Margin: Uses entire account balance as collateral
- Isolated Margin: Limits risk to specific position's collateral
| Mode | Pros | Cons |
|---|---|---|
| Cross | Better loss absorption | Higher liquidation risk |
| Isolated | Limited losses | Easier liquidation |
Leverage Settings
Recommended for beginners: ≤5x leverage
Order Types
- Limit Order: Set specific entry price
- Market Order: Immediate execution at current price
MEXC's Risk Management Mechanisms
Auto-Deleveraging (ADL) System
When liquidations occur and insurance funds are insufficient, MEXC's ADL system:
- Identifies profitable positions with high leverage
- Reduces these positions to cover losses
- Uses an ADL indicator (5-level warning system)
Funding Rate Mechanism
Balances contract and spot prices by:
- Charging the dominant position (long/short)
- Paying the opposing position
- Typically 0.01% every 8 hours
Insurance Fund
Covers losses exceeding margin during liquidations. Updated every 4 hours.
Pricing & Fees
Price Index Sources
MEXC aggregates prices from five top exchanges:
- BITSTAMP
- COINBASE
- BITFINEX
- KRAKEN
- BITTREX
Prices exceeding ±3% of median are adjusted accordingly.
Fee Structure
- Maker: 0.02%
- Taker: 0.06%
Conclusion
Perpetual contracts offer powerful tools for both bull and bear markets. MEXC's extensive altcoin selection enables unique strategies like hedging against high-APY farming positions. Beginners should:
- Start with major coins (BTC/ETH)
- Use low leverage (≤5x)
- Practice with demo accounts
👉 Explore perpetual contracts on MEXC Exchange
FAQ Section
Q: What's the minimum leverage on MEXC perpetual contracts?
A: 1x leverage is available for all contracts.
Q: How often are funding rates exchanged?
A: Typically every 8 hours, but may vary by market conditions.
Q: Is isolated margin safer for beginners?
A: Yes, it limits losses to specific positions rather than your entire account.
Q: What happens during extreme volatility?
A: The ADL system activates to maintain market stability when liquidations occur.
Q: Can I trade perpetual contracts without KYC?
A: Basic trading is available without full KYC, but withdrawals have limits.
Q: How does MEXC prevent price manipulation?
A: Through multi-exchange price indexing and automatic price adjustments.