Futures Trading 101: A Beginner’s Guide to Perpetual Contracts in 2025

Futures trading has now developed at a rapid pace to be one of the most used methods to enter crypto markets, with perpetual contracts becoming the center stage in 2025. In contrast to the traditional future, the perpetual contracts enable traders to open long or short contracts without being concerned about the expiry dates. This liquidity, with profound flexibility and competitive charges, makes them a weapon of power both among beginner and experienced traders. Since perpetual contracts are soon becoming the building block of crypto trading, MEXC can offer a secure and cost-effective setting in which users can experiment with these opportunities.

In case you are unfamiliar with futures trading, it is imperative to know the basics. This study will take you through the basics of perpetual contracts, how they operate, why they are important in 2025.

Perpetual Futures Contracts

Perpetual futures contracts represent a kind of derivative instrument that resembles a regular futures contract only by the fact that they lack an expiration date. The traders have the option of holding their positions at any length they desire as long as they have the margin.

Key Features

  • No expiry date: Perpetuals do not have an expiry date, as do quarterly or monthly futures.
  • Funding rate mechanism: Maintains the perpetual price at an even level with the spot market by making the long and the short trader make periodic payments to each other.
  • Leverage options: The traders are able to increase the exposure to a very high degree, in some cases up to 500x, but at increased risk.

This makes perpetual contracts appealing to traders looking for flexibility and continuous exposure in the crypto market.

What Is Long and Short Position?

Futures trading gives the players an opportunity to profit in the up and down markets.

Going Long

A long position is a position that is opened when a trader anticipates an increase in the price of an asset. For example:

  • Buy BTC/USDT at $60,000
  • Close position at $65,000
  • The difference is profit, and multiplied by leverage.

Going Short

A short position is the contrary. It is applied in cases where the trader anticipates the price to decline. Example:

  • Open short SUIUSDT at $4
  • Close position at $3.2
  • The price is down, the profit comes.

This is one of the reasons why perpetual futures are popular in volatile crypto markets, because of this ability to make profits in both directions.

Reasons To Trade Perpetual Futures in 2025

The future of cryptocurrency in 2025 offers traders some distinct opportunities.

Market Conditions

  • More volatility in digital currencies like Bitcoin, Ethereum, and altcoins.
  • The rise in the use of decentralized finance (DeFi) and real-world asset (RWA) tokens.

Benefits

  • Leverage: increase possible returns on comparably minimal funds.
  • Hedging: Hedging current portfolios by shorting correlated holdings.
  • Liquidity: MEXC has a minimum depth of liquidity of futures in excess of $9.1 billion, enabling large orders to be executed with minimal slippage.

These are the reasons why perpetual contracts are extremely appealing to both newcomers and experienced traders willing to diversify their strategies.

Futures Trading Risk and Challenges

Although the existence of perpetual contracts is associated with great opportunities, there are risks involved that cannot be ignored.

Leverage Risks

  • Profits as well as losses are multiplied by leverage.
  • Even a little price change in opposition to your position may cause liquidation.

Margin and Liquidation

  • Positions are dependent on collateral (margin).
  • The forced liquidation may occur when the maintenance margin is exceeded.

Funding Rate Impact

The payment of funds can be counterproductive to profits in the long run in case of an imbalanced market positioning.

Best Practices of Risk Management

  • Begin with reduced leverage levels.
  • Limit the possible losses with stop-loss orders.
  • Do not put too much capital in one trade.
  • Have numerous investments in various assets.

Reason MEXC Is The Best Exchange to Start in 2025

MEXC has positioned itself as one of the leading exchanges because it has concentrated on cost-effectiveness, liquidity, and accessibility to global users.

Competitive Fee Structure

  • Futures Maker Fee: 0%
  • Futures Taker Fee: 0.01%

Additional discounts will be offered for paying fees using the MX token.

Extensive Market Coverage

  • Hundreds of perpetual futures contracts in major and trending tokens.
  • Premature listings of assets of high demand, such as meme coins and AI-related projects.

High Liquidity and Reliability.

  • Liquidity depth of Futures of 9.1 billion.
  • A throughput of 1.4 million transactions per second in the system makes it run smoothly.

Beginner-Friendly Features

  • Practice on copy trading and demo accounts.
  • Flexible margin mode: isolated and cross margins.
  • A sophisticated but easy-to-use web-based and mobile trading interface.

Trade perpetual futures on MEXC today and begin trading with the lowest fees and the most liquid industry.

Perpetual Futures at MEXC

Step 1: Create an account at MEXC and pass KYC verification to access it.

Step 2: Deposit Funds: Get the assets into your spot account and then transfer to your futures account.

Step 3: Select a Contract Type: Select either USDT-M (settled in USDT) or Coin-M (settled in crypto) perpetual contracts.

Step 4: Select Leverage and Margin Mode: Choose the leverage you desire.

Step 5: Open a Position: Buy long positions and sell short positions, and track your trades.

Future of Perpetual Trading in 2025

Perpetual contracts will probably continue to occupy an even larger stake in the changing crypto scene. Trading perpetual futures in 2025 presents distinctive opportunities to individuals willing to learn and adapt to the different opportunities presented by these innovations in the field of liquidity and accessibility of risk management tools. MEXC is a trusted platform where newcomers are sure to discover the world of futures at low charges and with well-developed infrastructure.

Futures Trading and Perpetual Contracts Frequently Asked Questions

What is the distinction between perpetual futures and traditional futures?

The traditional futures expire, whereas the perpetual contracts do not.

What is the maximum leverage I can apply to MEXC?

MEXC provides a leverage of up to 500x in some of its contracts, but it is advisable that beginners should engage in much lower leverage.

What are the risks of perpetual futures trading?

The greatest risks are those that involve the losses in leverage, margin calls and liquidation. The mitigation of these risks is achieved through stop-loss orders, and proper position sizing.

Do I need a very large capital to start trading futures in MEXC?

No. Traders can begin with fairly small sums and leverage and base margin requirements.

Final Thoughts

The dynamic, possibility, and liquidity of the future trading in 2025 is founded on perpetual contracts. The prospect of profit is great on the one hand, whereas the risks are also significant on the other hand. Knowing the right knowledge and tools one can enter into futures trading confidently that he or she is going to begin with it. MEXC offers the infrastructure, fees, and other services that make the trip to be convenient and productive.

Disclosure: Before investing in cryptocurrencies and futures, the risks are very high, and not every investor is fit to invest in them. Never be afraid to do your own research and be a responsible trader.

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