Margin Trading MEXC

Margin trading on MEXC enables users to cryptocurrency trading on borrowed money. This helps improve results so that traders can get more income on the site mexc.com. But there is also a great risk of losing the balance of margin and positions that have been opened.

How to start ?

To start trading on crypto exchange, the trader needs:

• Activate the margin balance.
• Transfer assets to a margin account.
• Use borrowed assets.
• Pay back the funds you borrowed.

To activate an account, you must log in to the MEXC website, go to “Trading – Margin”. On the margin platform, click “Open Account” and read the deal agreement. Confirm activation.

 

To transfer assets, you need to click on the “Transfer” button, select a token and enter the amount to be used as collateral. The limit of funds that can be arranged as a loan depends on the amount of assets in the margin account.

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To borrow assets, in “Normal” mode, you must click on the “Loan” button. MEXC will calculate the amount available to borrow. The minimum amount and interest rate will be displayed. You can also go to the “Overview” section and select a margin balance. The page will have information about the funds in the account in different currencies and several buttons to act on them: trade, loan, repay and transfer.

After the margin transaction ends, you can return the borrowed tokens with interest. After deducting the loan amount and interest, the account will be credited with the profit in the form of a balance. To repay the funds, you need to click on the “Repayment” button and enter the amount. If you don’t have enough money on your balance, you can transfer it to a MEXC margin wallet.

Auto mode

The exchange offers trading in automatic mode. It allows to simplify the process and make the trader’s work more convenient. In this mode, the user will not borrow and return assets manually. The system itself will determine whether it is necessary to borrow, taking into account the amount in the margin wallet. If the required assets are more than the available funds, the MEXC platform will automatically borrow coins, calculate the rate and place an order. The system will automatically return the tokens when the transaction ends.

Margin mode

The exchange only supports isolated margin. If a trader transfers coins to a margin pair, an isolated account is automatically created for him. In this mode, the user must specify the margin for the selected pair. The service accepts trading and denominated tokens.

Liquidation process

In some cases, it is possible to liquidate open MEXC user positions. This can happen due to price fluctuations and accumulated interest. In the first case, the service limits the trader’s rights to transactions on a margin account when the risk rate is less than or equal to the liquidation line. This means that the value of the last transaction on the pair is less than or equal to the liquidation price. The system sells the user’s balance at the liquidation line price to pay off the principal and interest on the loan. If assets remain, they will be returned to the trader.

Because of accumulated interest, it is also possible to liquidate positions. Even if there is no trade after assets are borrowed, the interest will still be included in the risk rate. If they are not paid long enough, the risk level may fall below the liquidation line, causing a forced closure. The trader is encouraged to pay interest regularly or maintain a sufficient balance so that the risk level is greater than the early warning line.

Rates of margin fees

The commission rate for margin trading on MEXC is the same as for spot trading – 0.2% for maker and taker. A simple interest rate is used for the loan. It is charged every hour (if less than an hour, it counts per hour). The platform can at its discretion adjust the rate, including the interest and the method of their calculation. Information on such an update must be published in the margin trading rules on the Exchange website. If the user has not returned the loan amount and accrued interest before the new rate takes effect, the old rate will be in effect for him.