MEXC cryptocurrency derivatives
MEXC cryptocurrency derivatives trading platform was founded in April 2018 and is one of the world's leading platforms for trading digital assets. The key members of the team are representatives of world-class enterprises and investment firms, and they have extensive experience in the blockchain and financial sector.
The MEXC crypto derivatives trading platform provides users with one-stop services for digital assets such as spot trading, margin trading, leveraged ETFs and contract trading, as well as PoS staking.
She not only assembles an experienced security team, but also cooperates with leading security firms to ensure the integrity of the user's assets.
MEXC crypto derivatives in Malaysia are very popular lately.
MEXC Global Commission
There are a number of fees that are known as receiver-to-recipient fees and producer-to-producer fees. The first option is a "fixed" rate. The trade is assumed to cost the same amount for both the buyer and the producer.
MEXC derivatives trading charges a flat rate of 0.20% per transaction.
This is slightly less than the industry average. Thus, in terms of trading rates, MEXC Global has an advantage due to its competitive offer.
When it comes to choosing which exchange to trade on, it is important to consider withdrawal fees. The withdrawal fee is set regardless of the number of withdrawn units of cryptocurrency. It differs by cryptocurrency. This exchange charges 0.0005 BTC for BTC withdrawals. It is also slightly lower than the industry average. The average BTC withdrawal fee in the global industry is approximately 0.0008 BTC.
Before we start trading MEXC derivatives in Malaysia, let's take a look at what derivatives are in general.
What are derivatives?
Derivatives, in simple terms, are derivatives of underlying instruments. They are issued in the form of contracts containing the right or obligation (depending on the type) to sell or purchase the underlying asset (in our case, this is a cryptocurrency) at a fixed price within a certain period.
Earning on such contracts can bring you good profits if the trend is moving in the right direction. Loss is also possible, of course, so experience and market analysis are required to work with derivatives.
The main function of derivatives is risk hedging. The parties protect themselves from losses. For example, by purchasing a futures contract for the delivery of a commodity, the buyer purchases the commodity in the future at today's price. He does not need the goods now and he fears that in six months the cost of the goods will be much higher. Therefore, he buys a futures for delivery and calmly waits for delivery.
The second function of derivatives is to make a profit on the difference in quotes. In other words, speculation. Contracts can be resold in the same way as the underlying assets, income can be increased several times through the use of leverage.
On the MEXC derivatives trading platform you can trade futures and ETFs.
Futures is a contract for the purchase of an asset in the future at a price fixed at the time of the transaction. Anything can be the underlying asset of a futures — goods, services, stocks, and, of course, cryptocurrency.
The first futures contracts appeared on the commodity market and were usually used to defer payment for goods. This type of contract was convenient for both the seller and the buyer, as it made it possible to avoid sharp price fluctuations that could provoke problems with settlement in the future.
Cryptocurrency-based futures appeared quite recently, in 2017, but have already gained popularity among investors as a tool for hedging risks and making speculative profits. Today, futures are used not only to guarantee the price of a commodity in the future, but also to make speculative profits. The main part of the directives market is settled futures, which do not involve the direct transfer of goods. Instead of transferring the goods to the buyer at the set price at the appointed time, the difference is calculated. The seller and the buyer fix profits or losses depending on which direction the price has changed.
Cryptofutures are of two types - settlement and delivery:
The deliverable futures implies that at the time of execution the actual transfer of the asset will be performed. For example, if a futures contract was concluded for 1 BTC, then at the time of expiration the seller will send 1 BTC to the buyer, who in turn will pay the agreed amount.
A settled future does not involve the transfer of an asset. In such an agreement, at the time of expiration, the buyer and seller make only a cash settlement, without performing the actual transfer of the asset.
Leveraged futures can be classified as a separate category.
Positions opened according to this scheme can bring large profits by increasing the size of the position with the help of leverage. But they carry increased risks, because if you do not guess with the trend, you can quickly lose the deposit, and the exchange will automatically close the unprofitable position if the existing deposit does not cover the losses.
In order not to lose the deposit in their account as a result of an erroneous trend prediction, traders have a “golden rule” to enter positions only 10% of the deposit. On cryptocurrency transactions, given their high volatility, experts advise limiting your entry into positions even more strictly - 1% of the deposit. Thus, 99% of the funds are dead weight lying outside the market on the deposit of the exchange, insuring an unexpected change in the trend for open positions of cryptocurrencies.
It should be noted here that playing on a futures exchange with leverage is very similar to gambling, where the main task is to “tickle your nerves” and not lose a deposit, and then, if you are lucky, earn money. If we compare the game on the futures exchange with gambling, then it must be said that there are much more chances on futures than in gambling. Gaming platforms are closed financial systems, where the amount of winnings depends on the amount lost by other players in the system, minus the profit of the gaming system. The futures exchange is an open financial system and the profit from a successful bet will come from those who lost their nerve when the bullish trend changed to bearish, who bought cryptocurrency no matter where their prices are at the maximum, in the hope that it will continue to grow, but these hopes did not materialize and the price went down, who decided to fix their losses, fearing a further fall in the price of cryptocurrency or for other reasons.
What is an ETF?
ETF (Exchange-Traded Funds) is an exchange-traded fund. He buys securities of different companies for millions and billions of dollars, collecting them into an investment portfolio, and then sells a stake in it to investors. One ETF share is one share of the portfolio. ETF shares can be traded on the exchange like ordinary securities.
How does a Cryptocurrency ETF work?
Bitcoin-ETF is a fund arranged on the same principle. The fund buys one or more cryptocurrencies, for example, the same bitcoin, and sells its shares to investors on the stock exchange. This allows investors to earn on the growth in the price of cryptocurrencies without buying them directly on specialized cryptocurrency platforms.
Thus, investing in bitcoin ETFs is safer and more convenient for many than buying a coin on a crypto exchange. After all, you don’t need to open a wallet, register on the exchange, worry about hackers hacking, scam owners of trading platforms or losing a private key.
Cryptocurrency ETF issuers are solely responsible for the safety of the underlying asset. However, such ETFs are regulated under securities laws. The operation and transparency of the fund is monitored by a depository and an auditor, the fund reports to the regulator.
In addition, ETP also includes:
ZPIF - (Closed-End Funds) - closed mutual investment funds. Such funds raise the required amount of capital only once, issuing a fixed number of shares.
Exchange-traded derivative contracts are standardized derivatives such as futures and options traded on organized markets.
Exchange Traded Notes (ETNs), which are debt securities in nature. This category also includes Exchange-traded certificates and Exchange-traded currencies/commodities (ETCs).
How to trade on MEXC?
Here are some instructions on how to trade MEXC cryptocurrency derivatives in Malaysia.
How to deposit?
To top up your account, go to the asset summary page by clicking "Assets" on the top bar.
Select the coins you want to deposit from the dropdown list. Then enter the address you are sending your coins from. MEXC will notify you that your deposit is pending processing.
The deposits you have made will then appear on your account. As soon as they appear, your deposit records will show "success".
How to withdraw?
MEXC Global Exchange only allows withdrawals if you have enabled two-factor authentication by linking your mobile number to your account or by activating Google Authenticator. To withdraw your coins, select "Assets" on the top bar. Select Remove. Enter the address and withdrawal number and click "Submit".
You will then need to confirm the withdrawal by entering the code sent to your email or SMS, or via Google Authenticator, depending on the authentication method you selected earlier.
When you submit the confirmation code, the exchange will check your order, you can view the status of the order by clicking "Control withdrawal form".
Start trading MEXC crypto derivatives and you will succeed!