Trade With The Trend: An In-Depth Interpretation of MEXC’s Perpetual Contract

The crypto market was originally pessimistic about the Fed’s interest-rate policy, and BTC once dropped below 33,000 USDT. But nobody expected that a V-bottom would appear on BTC 4h chart due to some factors. If the V-bottom continues into a trend, it is advantageous for both the spot and futures.

This time we’ll be making an in-depth interpretation of MEXC’s Perpetual Contract.

MEXC’s perpetual contracts include USDT-M linear contracts and COIN-M inverse contracts, where BTC_USDT for USDT-M futures support up to 125x leverage, BTC_USD for BTC-M futures support up to 100x leverage. The different leverage multiples are available for other risk preferences.

In my experience, I found that MEXC perpetual contracts are outstanding in the following areas:

1. The liquidation price is transparent, wherein the fair price is used for liquidation. The benefit is to avoid the lack of liquidity that may cause the deviation from the price index, resulting in unnecessary forced closings of position.

2. Good depths, especially small price differences between buying and selling orders. The top orders’ depths are very strong. The liquidity of the top 15 orders has been relatively distributed evenly.

3. Flash closing is convenient and reduces operation delays during a market uptrend.

4. Many tokens can be traded, more than 200+.

Avoid unnecessary forced liquidations

MEXC futures use fair prices for liquidation. So, in essence, the fair price of BTC comes from the spot price of various platforms such as Binance, Huobi, OKX, etc. It is calculated by a weighted average algorithm.

Therefore, in terms of the forced liquidation price, MEXC’s fair price is transparent and publicly accessible.

In addition, due to the use of fair prices to calculate the forced liquidation price, even if there are large transactions within the platform, resulting in excessive price deviation or price spikes, there will be no unnecessary forced liquidation.

When the market is stable, there is little difference between the fair price and futures price. However, when an extreme situation arrives, the protective effect of the fair price can be observed.

The Top Orders Have Strong Depth and Low Slippage

Another advantage of MEXC futures is that the depth of the first few orders is very strong, with especially small price differences between buy and sell orders.

BTC_USDT Perpetual Contract Depth Chart
ETH_USDT Perpetual Contract Depth Chart

I randomly took the depth charts of MEXC BTC and ETH perpetual contracts. It can be seen that the top few orders not only have even buy and sell prices but also has adequate volume, small slippage, and fast transaction speed. These characteristics are very important for futures products.

Convenient Flash Closing Reduces Operation Delay During a Market Uptrend

A very important thing for futures is whether it can be closed smoothly in an uptrend market. The MEXC perpetual contract has a reasonable design to check the holding positions and flash close.

On many platforms, you will need to see the positions on the futures trading page. It is only possible to flash close on the positions page. More importantly, from the futures trading page to the forced liquidation page, you will need to go and load a new page.

If you need to load a new page, the server needs to reload, which takes up bandwidth. During a market uptrend, the more stuff you need to load, the more laggy the page, the more steps you need to convert and force liquidate, the longer the delay.

In contrast, MEXC is very reasonably designed. The steps and delays for forced liquidation are reduced which allows users to close a position at the best market price when a market uptrend is here.

The Most Tradable Tokens on the Network Launched with the Fastest Listing Speed

MEXC Perpetual Contracts also have an important advantage: the largest number of tradable tokens across the network and the fastest listing speed. According to the statistics, the MEXC Perpetual Contracts products already cover 200 crypto assets, mainly due to the spot advantage of the MEXC platform and the platform’s fast listing speed. For example, SHIB and PEOPLE were all very trending projects at one time, which were first launched on MEXC. After the price was stable and the risk was assessed, MEXC would follow up by quickly listing the related futures pairs.

This demonstrates the superiority of its token listing speed and the abundance of listed tokens. The current market cap of BTC and ETH is very high, resulting in lesser earnings than small market cap tokens with higher volatility. When the profit from the perpetual contracts of BTC and ETH is very small, the perpetual contracts of hundreds of other small market cap projects provide investors with additional choices.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store