MGBX What Is Futures Trading? – MGBX Support Center

I. What Do Long and Short Positions Mean?

Going Long: Opening a position by buying when you expect the price to rise. If the closing price is higher than the opening price, the price movement generates a profit; otherwise, it results in a loss.

Going Short: Opening a position by selling when you expect the price to fall. If the closing price is lower than the opening price, the price movement generates a profit; otherwise, it results in a loss.

For example, based on a USDT-margined linear futures contract, if you open a 0.01 BTC long position at 60,000 USDT and close it at 61,000 USDT, the profit from the price movement is (61,000 − 60,000) × 0.01 = 10 USDT. If you close the position at 59,000 USDT, the loss is 10 USDT. The above calculation excludes trading fees, funding fees, and other costs and is provided for illustrative purposes only.

II. What Are Perpetual Futures?

Perpetual futures generally have no fixed expiration date. Users can open, hold, and close positions in accordance with the applicable trading rules. The funding fee mechanism involves periodic settlements between long and short position holders, helping keep futures prices close to the underlying reference price.

MGBX offers perpetual futures trading. For details on supported trading pairs, margin currencies, leverage ranges, and settlement arrangements, please refer to the corresponding contract page. Parameters for one trading pair should not be assumed to apply to all contracts.

III. How Should Margin and Leverage Be Understood?

Margin is the capital used to support a futures position, while leverage determines the ratio between the margin used and the position size established.

For example, ignoring fees and other restrictions, using 100 USDT in margin with 10x leverage to open a position results in a notional value of approximately 1,000 USDT. A 1% adverse price movement would result in a loss of approximately 10 USDT, equivalent to 10% of the initial margin.

Leverage amplifies the profit and loss fluctuations relative to the margin used. The maximum position size available for opening a position is also subject to factors such as maintenance margin requirements, risk limits, and available account balance.

IV. What Are the Differences Between Cross Margin and Isolated Margin, and Between Combined and Separate Positions?

Cross Margin vs. Isolated Margin (Margin Modes)

Cross Margin Mode: Within the scope of applicable rules, margin is shared across positions within the account. When a position incurs a loss, it may use other available margin in the account. As a result, adverse movements in one position may affect other funds or positions in the account.
Isolated Margin Mode: Risk is managed independently using the margin allocated to the corresponding position. Losses are primarily borne by the margin assigned to that position. Settings such as adding extra margin or enabling Auto-Add Margin can change the amount of capital allocated to cover the position's risk.

Both modes may trigger forced liquidation. Please confirm your margin mode before opening a position and manage your position risk appropriately.

Combined Positions vs. Separate Positions (Position Management Modes)

Combined Position Mode: Positions in the same contract and in the same direction are managed together. For example, after opening multiple BTCUSDT long positions, the system combines them into a single long position and calculates the total position size, average entry price, profit and loss, and other metrics collectively.
Separate Position Mode: Different orders opened for the same contract and in the same direction can form independent positions. Entry prices, position sizes, and take-profit and stop-loss settings are managed separately, making it easier for users to manage different trading strategies.

Combined and separate position modes primarily affect how positions are displayed and managed. They are not equivalent to margin modes. Separate positions do not mean that the financial risks of all positions are completely isolated. Actual risk exposure still depends on the selected margin mode and the platform's trading rules.

V. Basic Steps for Futures Trading on MGBX

Prepare sufficient available margin for the relevant futures contract.
Navigate to the futures trading page and select a trading pair, Cross Margin or Isolated Margin mode, and leverage.
Select a Market Order, Limit Order, or Trigger Order. Confirm the direction and quantity before submitting the order to open a position.
After the order is filled, check your positions, margin balance, and profit and loss. Set take-profit and stop-loss orders as needed.
Use the close-position function in the positions section to close all or part of your position, then review the execution and fee records.

VI. Risks to Understand Before Trading

Futures trading involves risks associated with price fluctuations, leverage, slippage, funding fees, and forced liquidation. Stop-loss orders do not guarantee execution at the specified price. Forced liquidation may also be triggered if your margin becomes insufficient. Please familiarize yourself with the applicable fees and contract rules, and choose a position size that is appropriate for your risk tolerance.