The craze on crypto has more attention and discussion for individuals to seek reliable information on how to participate and benefit from the industry. One of the leading ways to benefit from it is through crypto futures trading. Traders can utilize short-term and long-term positions in various cryptocurrencies to profit.
Upon evaluating crypto futures trading in an exchange like MEXC Global, it would be challenging to differentiate it from regular trading without understanding the whole concept of futures trading. Crypto Lists gives an in-depth insight into crypto futures trading and what the MEXC offers.
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What is Futures Trading?
It involves speculating on the future price of an asset between two investors under a contract. What makes it unique is that these investors do not actually own the asset, in this case, a crypto coin. They gain exposure to the dynamics of the token while betting on the token’s future price movements.
It is more accommodating to beginners in crypto due to its flexibility. It also facilitates margin trading with high leverage for several crypto entrants and experienced traders. Futures trading is part of a derivatives trading instrument that contains details regarding marginal requirements, payment methods, pricing, and units. The predetermined date and price dictate the terms of who benefits from the futures contract. These contracts include Contracts for Differences, Swaps, and Options.
There are various types of Future contracts. It includes perpetual contracts, standard futures contracts, and futures with physical delivery. Bitcoin is the most popular crypto coin for future trading.
Benefits of Futures Trading
Futures trading simplifies the exposure of cryptocurrencies to beginners due to their convenience. Traders are not required to own digital currencies or a digital wallet because the cryptocurrency is not physically traded. They access a liquid market without the risk of owning a volatile crypto due to the position and price limits.
Additionally, the possible gains with crypto are lucrative due to leverage. Traders can start with a low amount and have significant gains, especially while implementing flexible trading strategies like in intra-day trading.
MEXC Global Crypto Futures Offering
MEXC is the one-stop service exchange for leading crypto assets. It has over 4 years of experience in futures products and operations. It ranks first in global liquidity together with several other benefits. Crucially, MEXC Global offers hedge risk and up to 200x leverage with superior spreads.
Futures trading on MEXC involves simplified four steps. Traders must open a futures account through the futures trading interface. You then familiarise yourself with the interface before starting to trade. You can adjust the position mode to either hedge mode or one-way mode. The hedge mode holds both the long and short positions at the same time. You then set the hedge mode and leverage multiplier that suits your risk appetite which includes cross mode and isolated mode. The maximum leverage depends on the speculative value of the position.
Traders on MEXC access hundreds of trading pairs of crypto assets. Users select their favorable futures including USDT-M which uses USDT as collateral, profit, and loss. Coin-M futures utilizes the underlying crypto as collateral.
When opening a position, traders can upscale their trading by exploring more advanced settings such as take profit stop loss. MEXC offers innovative trading varieties including perpetual futures, leveraged ETFs, and index ETFs. The exchange also facilitates DEMO trading for its users. The exchange offers a safe and high-performance interface with fair trading and better depth.
Recent MEXC Global Futures Developments
MEXC New Futures M-Day launched Bitcoin trading at the end of last month with at least 1000 tickets where users who met the futures trading requirements received free project tokens. The event was an airdrop with a reward pool of 2.44 BTC with each winning ticket claiming 0.00244 BTC. USDT-M futures traders with a minimum volume of 10,000 USDT before the ticket claim time were eligible.
MEXC Global also launched BFTUSDT futures which supports a free adjustment of 1-20x leverage for cross-margin and isolated margin. Users were invited to trade BFTUSDT to have a chance of winning a 6000 USDT futures bonus. On the same day, the crypto exchange launched Edoverse (ZENI) on the MEXC M-Day trading with a reward pool of 10,000,000 ZENI. There were 1000 winning tickets each with a value of 10,000 ZEN. It was an airdrop with a non-initial listing for minimum futures trading volumes of 10,000 USDT by USDT-M futures traders.