Futures trading beginners may find themselves unfamiliar with these professional terms and their meanings when trading on the MEXC futures page. On the MEXC futures trading page, relevant information for each trading pair is provided. Let's take the USDT-M perpetual futures trading pair, BTC/USDT, as an example.
Click on the MEXC homepage and select [Futures] from the navigation bar - [USDT-M Perpetual Futures] to enter the USDT-M futures page.
Search and select the BTC/USDT trading pair, click on [Trading Rules] - [View all futures trading rules] to enter the futures information page.
Select the first tab, [Futures Details]. This page displays detailed futures information for the BTC/USDT trading pair. You can also use the dropdown menu to select other trading pairs and view the relevant futures details.
Perpetual Futures: Perpetual futures, also known as perpetual futures contracts, evolved from traditional financial futures contracts, with the key difference being that perpetual futures have no settlement date. This means that as long as the position is not closed due to forced liquidation, it will remain open indefinitely.
Index Price:The comprehensive price index obtained by referencing the prices on major mainstream exchanges and calculating the weighted average of their prices. The index price displayed on the current page is the BTC index price. The index price for BTC is obtained by referencing the prices on BYBIT, HUOBI, and MEXC.
Fair Price: The real-time fair price of the futures, calculated based on the index price and market price. It is used to calculate the floating PNL of positions and determine position liquidation. It may deviate from the last price of the futures to avoid price manipulation.
Size (1 Cont): This represents the value of one contract for the futures. For USDT-M futures, each contract is measured in the quantity of the token. For Coin-M futures, each contract is measured in US dollars. For example, the futures size for BTCis 1 contract = 0.0001 BTC.
Minimum Price Change: The minimum price fluctuation per contract for the futures. For example, the minimum price change of BTC is 0.1.
Minimum Order Amount:The minimum order quantity for a single order for the futures. For example, the minimum trading amount for BTC is 0.0001 BTC.
Limit Order Price Cap / Price Floor Ratio: The buy limit order price should be lower than or equal to (1 + Price Cap Ratio) * Index Price. The sell limit order price should be higher than or equal to (1 - Price Floor Ratio) * Index Price.
Maximum Open Order Quantity: Maximum number of open limit orders for each trading pair.
Price Protection: After enabling the price protection feature, if the TP/SL (trigger order) reaches the trigger price, and if the price difference between the last price and the fair price of the futures exceeds the set threshold for that futures, the TP/SL (trigger order) will be rejected. Please note that price protection will only take effect once enabled and will not apply to historical orders that were placed before it was enabled.
Initial Margin: The minimum required margin amount for opening a position.
Initial Margin Rate: The value of the position at the time of opening the position divided by the position margin. The initial margin rate corresponds to your leverage multiplier.
Maintenance Margin: The minimum required margin to maintain a position. When the margin balance of a position falls below the maintenance margin, the position will be liquidated or reduced. Maintenance Margin = Position Nominal Value * Maintenance Margin Rate.
Maintenance Margin Rate: The maintenance margin rate is calculated based on the user's position size and is not affected by the leverage multiplier.
Risk Limit: MEXC implements a risk limit mechanism for all trading accounts, utilizing a tiered margin model to manage risk. The leverage multiplier is determined based on the position size, with lower leverage multipliers available for larger positions. Users can adjust the leverage multiplier themselves, and the initial margin rate is calculated based on the user's chosen leverage multiplier.
Value-added Risk Limit: Perpetual futures for different tokens correspond to different risk limits and incremental limit tiers. For example, the risk limit of ZK perpetual futures is divided into 5 tiers.
Funding Rate: Based on the price difference between the perpetual futures market price and the spot market price, funding fees are periodically exchanged between long and short traders. When the market is bullish, the funding rate is positive, and long traders in perpetual futures trading will pay funding fees to short traders. Conversely, when the market is bearish, the funding rate is negative, and short traders in perpetual futures trading will pay funding fees to long traders.
Note: Funding rates fluctuate based on the market sentiment, and the funding rates may vary for different trading pairs. For detailed information, please refer to the Latest Funding Rates.
Billing Cycle: Generally,the funding fees for all perpetual futures on MEXC are calculated every 8 hours.
Unrealized PNL: The PNL of the long/short position displayed before closing the position.
Long: Quantity (cont) * Futures Size (cont) * (Fair Price - Average Entry Price)
Short: Quantity (cont) * Futures Size (cont) * (Average Entry Price - Fair Price)
PNL: The PNL of the long/short position displayed after closing the position.
Long: Quantity (cont) * Futures Size (cont) * (Average Close Price - Average Entry Price)
Short: Quantity (cont) * Futures Size (cont) * (Average Entry Price - Average Close Price)
Liquidity Maker: This refers to traders who place orders that are not immediately matched with existing orders but are left on the order book, providing liquidity to the market.
Trading Fee for Liquidity Maker:The fee rate charged to liquidity makers.The maker fee rate on the MEXC platform is 0%.
Liquidity Taker: This refers to traders who place orders that are immediately matched with existing orders, consuming liquidity from the market.
Trading Fee for Liquidity Taker: The fee rate charged to liquidity takers. In the MEXC perpetual futures market, the taker fee rate is 0.02%.
Forced Liquidation Trading Fee: When a user's position is liquidated, MEXC charges a certain percentage as a liquidation fee. For example, the liquidation fee rate for BTC perpetual futures is 0.02%.
Automatic Deleveraging (ADL): When a trader’s position is liquidated, their remaining positions are taken over by MEXC's perpetual futures liquidation system. If the liquidated positions cannot be closed in the market and when the mark price reaches the bankruptcy price, the automatic deleveraging system will reduce the positions of traders holding positions in the opposite direction. The order of deleveraging is determined based on the leverage and profit ratio.
Understanding the terms related to futures trading is just the first step in learning how to use futures tools. Next, you need to gain practical experience through trading. Before trading futures, you can practice using the futures
Demo Trading platform provided by MEXC. Once you are proficient, you can move on to live futures trading.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.