A couple of days ago, MEXC Futures, a quite popular platform for futures trading, informed the users about their approach to letting traders use less leverage on futures trading. Effective from 05:10 UTC on 18th March 2024, the platform will be implementing the dropping of the maximum leverage multiplier for specific future trading pairs. This strategic change is made to fully implement this platform’s vision to provide a secure and efficient trading environment.
The trading pair for this new policy is GROKUSDT, which will change the maximum leverage from 75 to 50. The recent release of various margin limits on tradable currencies demonstrates the MEXC Futures’ active role in risk management and maintaining a stable environment amid the crypto market’s volatility.
Traders with positions or orders open in the GROKUSDT pair are accordingly advised to rethink their trading plans as soon as possible. This dependence of the closing PNL on various factors, such as the closing quantity, the average position price (AP), and the market closing price at the time of trade settlement, shows that the need to adjust positions is becoming evident. This means that the re-levering will not be seen directly in the PNL calculations, but the position has to be reviewed before an adjustment is made.
As a matter of prudence, the users of the MEXC Futures were very much aware of certain crucial points before the impending alterations. After an adjustment, the first amended positions that have exceeded the new margin requirements and limitations will still be permitted to buy or sell but are not allowed to be added to them. To continue to have the capacity to make normal trades, the users are advised to be transformed with the newly introduced leverage restrictions.
In addition, the announcement revealed the effects on limit orders, trigger orders, and trailing stop orders that would go beyond the updated spread limits. The same might still happen with existing limit orders, but trading new orders under the previous leverage settings will not be privileged. Thus, the limit orders and the order trailing stop beyond the new limits will no longer be triggered once they become active.
Copy trading functionalities operation with the leveraged multiplier that goes beyond modified terms will also encounter the limits. In such situations, orders are not conducted. Hence, an accountant must manually update the copy trade settings to match up with the new leverage framework.
Therefore, MEXC Future’s move to adjust leverage options constitutes the devotion to warranting a healthy environment that accommodates the users. Moderating leverage exposure is among the platform’s mitigation steps to shield traders from the highest degree of risk with this type of trading that comes with unpredictable cryptocurrency markets. This implies that the MEXC Futures adaptation is an extension of the broader aim of its organization to wade through the market trading irregularities while ensuring that the users still enjoy a smooth trading experience.