**How MEXC Futures Trading Works Step by Step** =============================================== **In the world of professional cryptocurrency trading, futures offer a powerful way to leverage market movements and maximize capital efficiency. Unlike spot trading, where you own the actual coins, futures trading involves contracts that track the price of an underlying asset.** For many high-volume traders, the goal is to optimize every transaction by using strategies like [**Backcom MEXC**](https://backcom.app/exchanges/crypto-cashback/mexc-cashback/) , which provides commission rebates and reduces the overhead costs of frequent trading. Step 1: Account Setup and Fund Transfer --------------------------------------- Before you can open your first position, you must have an active account with funds correctly allocated for derivatives. * Registration: Sign up for a MEXC account and complete the necessary identity verification (KYC) to unlock full futures trading limits. * Internal Transfer: Funds usually sit in your Spot or Funding account. You must navigate to the "Wallet" section and select "Transfer" to move your USDT into your "Futures" account. MEXC futures are primarily USDT-M (USDT-margined), meaning you use USDT as collateral. * Select Your Pair: Navigate to the "Futures" tab and choose your trading pair, such as BTC/USDT or ETH/USDT. Step 2: Choosing Your Margin Mode --------------------------------- One of the most important decisions a futures trader makes is how to manage their risk through margin modes. * Isolated Margin: In this mode, the margin allocated to a specific position is restricted. If the position is liquidated, only the amount you dedicated to that trade is lost. This is often preferred by traders who want to strictly limit their risk per trade. * Cross Margin: This mode shares your entire futures account balance across all open positions. While this reduces the risk of liquidation by providing more collateral to a losing trade, a catastrophic market move could potentially wipe out your entire futures account. **Read more:** * https://www.syncdocs.com/forums/profile/anderstruonq * https://guides.co/g/backcom-mexc/705056 Step 3: Setting Your Leverage ----------------------------- Leverage is the tool that allows you to control a large position with a small amount of capital. MEXC is famous for offering leverage up to 200x on major pairs, and even as high as 500x on select assets. * Small Bets for Big Trades: If you have 100 USDT and use 10x leverage, you can control a position worth 1,000 USDT. * The Risk of Leverage: While leverage amplifies profits, it also brings your liquidation price closer to your entry price. At 100x leverage, a mere 1% move against you will result in the loss of your entire margin. * Tiered Leverage: Note that as your position size increases, the maximum allowable leverage decreases to ensure market stability. Step 4: Placing an Order (Long vs. Short) ----------------------------------------- The unique advantage of futures is the ability to profit whether the market is going up or down. * Open Long: If you believe the price of the asset will rise, you "Buy Long." You profit from the difference between your entry price and the higher exit price. * Open Short: If you believe the price will fall, you "Sell Short." You are essentially betting against the asset and will profit if you buy it back at a lower price. * Order Types: You can use a "Market Order" for instant execution or a "Limit Order" to specify the exact price at which you want to enter the market. Step 5: Managing the Trade with Stop-Loss and Take-Profit --------------------------------------------------------- A professional trader never enters a position without a plan for exiting it. MEXC provides advanced tools to automate this process. * Take-Profit (TP): Sets a target price to automatically close your position and lock in your gains. * Stop-Loss (SL): This is your most critical safety tool. It automatically closes your position if the price moves against you to a certain level, preventing total liquidation. * PnL Calculator: Use the built-in MEXC calculator to determine your potential earnings, yield, and most importantly, your liquidation price before you confirm the trade. Step 6: Monitoring Funding Fees and Closing the Position -------------------------------------------------------- Futures trading is a dynamic process that involves ongoing costs and market adjustments. * Funding Rates: Every 8 hours, funding fees are exchanged between long and short traders to keep the futures price aligned with the spot price. These are peer-to-peer payments, not fees charged by MEXC. * Closing the Position: When you have reached your target or need to exit, you can use the "Close" button. If you were Long, you close by selling; if you were Short, you close by buying back. * Rebate Management: By utilizing a **Backcom MEXC** setup, the commission you pay for these high-frequency trades is partially returned to you, which is essential for maintaining a positive net PnL over the long term. Conclusion ---------- MEXC Futures provides the infrastructure needed to turn small market movements into significant opportunities. By following a disciplined step-by-step approach, from choosing the right margin mode to setting strict stop-losses you can navigate the volatile derivatives market with confidence. Author: [Backcom App](https://backcom.app/)