MEXC provides traders with flexible trading options. Users can choose between USD-pegged stablecoin margin or Coin-M perpetual Futures according to their personal preferences. At the same time, MEXCMEXC provides traders with flexible trading options. Users can choose between USD-pegged stablecoin margin or Coin-M perpetual Futures according to their personal preferences. At the same time, MEXC

Learn/Trading Guide/Futures/Understand the MEXC Perpetual Futures Trading Model to Build Better Trading Strategies

Understand the MEXC Perpetual Futures Trading Model to Build Better Trading Strategies

Author: MEXC Editorial Team

Nov 12, 2026MEXC Editorial Team

11 min

CROSS$0.10969+2.66%

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MEXC provides traders with flexible trading options. Users can choose between USD-pegged stablecoin margin or Coin-M perpetual Futures according to their personal preferences. At the same time, MEXC supports one-way and two-way positions, allowing traders to execute trading strategies more accurately in the ups and downs of the market. Most importantly, the margin mode can be flexibly set and the leverage size can be adjusted. These convenient features make MEXC an ideal choice to meet the needs of various traders, making it easier to develop their own trading strategies and improve their trading success rate when trading perpetual Futures.

Abstract

MEXC has launched USDT-M, USDC-M, USD1-M, and Coin-M perpetual Futures, providing users with over 1,500 perpetual Futures trading pairs. Not only is it ahead of competitors in terms of multi-speed trading of Futures, but it also has unique advantages in trading fee rate, trading depth, operation experience and other aspects, which have been well received by users.

Unidirectional position holding and isolated margin mode are simpler to trade, more suitable for novice users with insufficient Futures trading experience, and can help users open positions more intuitively and control risks.

The functions of the two-way position and cross margin mode are more powerful, suitable for users with rich Futures trading experience, who can flexibly hold positioning and hedging risks according to the development trend of the trading target price. However, it should be reminded that users must use the take profit and stop loss function provided by MEXC reasonably to effectively control the potential loss risk.

What Is MEXC Futures Trading?

Cryptocurrency Futures trading is a trading method that uses leverage and derivative tools to open long or short positions to speculate market price fluctuations. It is commonly used to hedging potential price fluctuation risks in Spot trading. MEXC Futures trading is divided into two margin modes: USD-pegged stablecoin margin and Coin-M. Among them, USD-pegged stablecoin margin Futures can also be seperated into USDT-M Futures, USDC-M Futures, and USD1-M Futures. MEXC has launched more than 1,500 trading pairs, providing users with a wealth of investment targets. At the same time, MEXC Futures trading is also highly competitive fee rates, and Futures trading orders (Maker) roles can enjoy a minimum of 0 commission.

1. What Are USD-Pegged Stablecoin Margin and Coin-M Perpetual Futures? What's the Difference?

1.1 USD-pegged stablecoin margin perpetual Futures

USD-pegged stablecoin margin perpetual Futures refers to a stablecoin in Futures where the pricing and settlement unit is anchored to the US dollar. Currently, MEXC has launched three types of USD-pegged stablecoin margin perpetual Futures: USDT-M, USDC-M, and USD1-M. For the convenience of introduction, the USD-pegged stablecoin margin perpetual Futures referred to in the following text are all examples of USDT-M perpetual Futures.

The value and profit and loss calculation of USD-pegged stablecoin margin perpetual Futures are based on USDT. Such Futures are designed to mitigate the impact of cryptocurrency price fluctuations on traders, as USDT is a stablecoin anchored to the US dollar and its value is relatively stable.

Therefore, the biggest advantage of USD-pegged stablecoin margin perpetual futures is that users can trade over 1,500 perpetual Futures on the MEXC platform using only stablecoins such as USDT as margin, and can also calculate returns in fiat currency. For example, when you earn a profit of 1,000 USDT, you can gauge its value at around 1,000 US dollar, because the value of 1 USDT is approximately 1 US dollar.

1.2 Advantages of USDT-M Futures

Advantage 1: Simplified Risk Management

There is no need to worry about the decline in the price of margin currencies (such as USDT) causing the margin to shrink. Profit and loss are clear at a glance, making it easy to develop stop-loss strategies.

Advantage 2: More Flexible Use of Funds

USDT can be used across Futures without requiring separate margin for different currency pairs.

Advantage 3: Suitable for Hedging Strategy

When combined with spot or other Futures, USDT-M Futures facilitate the calculation of hedging ratios.

1.3 Example of USDT-M Futures trading

Case: Trading BTCUSDT perpetual Futures. For detailed trading tutorials, please read Futures Trading Guide (App) and Futures Trading Guide (Web).

The first step is to open a position

Assuming the current BTC price = 60,000 USDT
Use 1,000 USDT as margin and open a 10x leverage long position.
Futures value = 1,000 USDT × 10 = 10,000 USDT

Then, position squaring and profit and loss calculation

If BTC rises to 63,000 USDT (+ 5%):
Nominal profit = 10,000 USDT × 5% = 500 USDT
If BTC falls to 57,000 USDT (-5%):
Nominal loss = 10,000 USDT × 5% = 500 USDT

It should be noted here that the above calculation is only based on mathematical dimensions. In actual trading, traders also need to consider the impact of multiple factors such as transaction fees, funding fees, slippage, and different Maintenance Margin rates.

At MEXC, the perpetual Futures trading order (Maker) handling fee rate is 0.00%, and taker handling fee rate is 0.02%. For more detailed information about MEXC handling fee rates, you can refer to MEXC related rates. The rates may vary in different countries and regions. Please refer to the rate page display.

1.4 Coin-M perpetual Futures

"Coin-M perpetual Futures" refers to Futures that use a certain cryptocurrency (such as Bitcoin or Ethereum) as margin and calculate profits and losses. In this type of Futures, US dollar is used as the pricing unit. The value of each Futures in Coin-M perpetual Futures is a certain amount of US dollars. For example, the face value of each Futures in Bitcoin-M perpetual Futures is 100 USD.

1.5 Example of Coin-M perpetual Futures operation

Case study: BTC-based perpetual Futures

Step 1: Open a position

Assuming the current BTC price is 60,000 USDT.
Users use 0.2 BTC as margin and open long positions with 10x leverage.
Positioning value = 0.2 BTC × 10 = 2 BTC .

Step 2: Position squaring and profit and loss calculation

If BTC rises to 63,000 USDT (+ 5%); Profit = 2 BTC x 5% = 0.1 BTC.
If BTC falls to 57,000 USDT (-5%); Loss = 2 BTC x 5% = 0.1 BTC.

Like USD-pegged stablecoin margin perpetual Futures, in the actual trading process of Coin-M Futures trading, other factors such as transaction fees, slippage, and funding fees need to be considered.

1.6 Comparison of USDT-M Futures and Coin-M Futures

Comparison Item	USDT-Margined Futures	Coin-Margined Futures
Margin Type	Stablecoins such as USDT, USDC	Corresponding underlying assets (e.g., BTC, ETH)
Profit/Loss Calculation	Settled directly in USDT	Settled in underlying asset, requires conversion to fiat currency
Risk Exposure	Only exposed to price volatility of contract's underlying asset	Exposed to both contract price + margin asset price volatility
Use Cases	Multi-currency trading, short-term high-frequency strategies	Investors bullish long-term on the underlying asset

2. What Are One-Way and Two-Way Positions?

2.1 One-way position

"One-way position" refers to investors who only hold long positions or short positions in Futures transactions (including USDT-M Futures and Coin-M Futures). If users believe that the price of a Futures asset will rise, they may hold a long position; conversely, if they believe that the price will fall, they may hold a short position. This position approach correlates investors' profits or losses with the direction of changes in Futures asset prices.

2.2 Two-way position (hedge mode)

"Two-way position" refers to the user's ability to hold both long and short positions in a Futures simultaneously, and to support the independence of the long and short direction leverage. In each Futures, all long positions are merged, and all bear positions are merged. When holding both long and short positions, both positions need to occupy the corresponding margin according to the risk limit level.

For example, in BTCUSDT perpetual Futures, users can open a long position of 25x and also open a bear position of 50x.

2.3 Comparison of one-way and two-way positions

Feature	One-Way Mode	Hedge Mode
Position Direction	Only maintains net position in one direction	Supports both long and short positions simultaneously
Profit/Loss Calculation	Net position PNL (calculated after long and short positions offset each other)	Long and short PNL calculated separately
Operational Difficulty	Simple, suitable for beginners	Complex, suitable for experienced traders
Suitable Trading Scenarios	Trend trading	Range-bound markets, hedging strategies
Flexibility	Lower	Higher
Capital Requirement	Lower capital occupation	Higher capital occupation

2.4 How to choose the position mode?

Choose one-way position situation

Single direction trading: clear bullish or bearish market, no need to hold long and short positions at the same time.

Reduce operational complexity: Investors who want simple management of positioning and profit and loss.

Select the case of two-way position

Hedging risk: There are long or short exposures in spot or other investments that require hedging to reduce volatility risk.

Oscillation or arbitrage strategies: Capture long and short opportunities in volatile markets, or engage in advanced strategies such as grid trading and cross-market arbitrage.

Flexible trading needs: the proportion of multiple bear positions needs to be adjusted according to market changes.

3. What Are the Isolated Margin Mode and Cross Margin Mode?

3.1 Isolated margin mode

The isolated margin mode margin refers to each position having an independent margin account. This means that each positioning has its own margin balance, and losses can only be compensated by the margin of that positioning. The maximum loss of isolated margin mode positioning is the initial margin and additional margin used by that position. This arrangement ensures that the loss of each positioning does not affect other positioning, thus limiting the scope of losses.

The advantage of the isolated margin mode margin mode is that it allows traders to more accurately control the risk of each positioning. Users can manually add margin for isolated margin mode positioning to optimize the forced liquidation price.

Scenarios applicable to isolated margin mode mode

Novice traders : It is easier to control risks and will not cause a significant reduction in account funds due to the loss of a single positioning.

High leverage trading : In the case of high leverage, the isolated margin model can limit risk exposure.

Single positioning strategy : When only a small amount of independent positioning is opened, the warehouse-by-warehouse mode is more suitable.

3.2 Cross margin mode

In the cross margin mode, all positioning shares the same margin account. With the cross margin mode, the user's available margin will be specifically used to support the corresponding full-position positioning, and will not be used as margin for other full-position positioning.

The cross margin model may be more suitable for traders who want to use their funds more flexibly, but they also need to be more cautious because losses may affect the entire account. Currently, MEXC supports adjusting positions held by positions to full positions, but does not support adjusting positions to full positions.

Applicable scenarios of cross margin mode

Large capital account: When the account balance is sufficient, it can effectively reduce the risk of liquidation of a single positioning.

Hedging trading: When multiple positioning profits and losses complement each other, the overall risk can be reduced.

High-frequency traders: When frequently adjusting positioning, it is more convenient to use cross margin mode to manage funds.

3.3 Comparison of cross margin mode and isolated margin mode

Margin Mode Comparison Table

Feature	Cross Margin	Isolated Margin
Margin Source	Shared from total account balance	Independently allocated margin for each position
Liquidation Risk	Lower, system automatically uses account balance to supplement margin	Higher, position liquidates directly when loss exceeds allocated margin
Loss Impact	Losses may affect overall account funds	Losses limited to the margin allocated to that position
Risk Control	Suitable for overall fund management, concentrated risk	Suitable for independent position management, dispersed risk
Target Users	High-frequency traders, large capital accounts, hedging traders	Beginner traders, high-leverage traders, single-strategy traders
Margin Addition	Automatically uses account balance to supplement margin	Must manually add margin

4. Introduction to MEXC Perpetual Futures Leverage Modification Rules

MEXC allows users to adjust leverage indepently for both long and short positions. You can change the leverage ratio while in isolated margin mode and switch from isolated margin to cross margin as needed. However, switching from cross margin back to isolated margin is not supported.

Currently, USD-pegged stablecoin margin perpetual Futures support leverage from 1x to 500x, with pairs such as BTCUSDT and ETHUSDT offering up to 500x. Coin-M perpetual Futures support leverage from 1x to 200x.

5. Conclusion

Overall, MEXC meets the needs of various traders for efficient, flexible, and secure Futures trading by providing rich Futures options, flexible margin models, and high leverage.

Currently, MEXC platform has launched a 0-fee event. By participating in this event, users can significantly reduce transaction costs and truly achieve the goal of "saving more, trading more, and earning more".

On the MEXC platform, you can not only enjoy low-cost transactions from this event, but also keep up with market trends, capture every fleeting investment opportunity, and start a journey of wealth appreciation.