Beginner's Guide to Spot Trading FAQ
1. Spot Trading Basics
1.1 What is Spot trading?
Spot trading refers to the buying and selling of assets at the current market price, with the asset exchange completed immediately after the trade is executed. In the crypto market, when you engage in Spot trading, you actually own the crypto assets you purchase and can freely hold, transfer, withdraw, or keep them for the long term.
Key features of Spot trading:
- Instant settlement: Asset delivery is completed immediately after the trade is executed.
- Actual ownership: The buyer receives the actual crypto asset.
- No expiry date: The asset can be held indefinitely.
- Relatively controllable risk: The maximum loss is limited to your invested principal.
1.2 What is the difference between Spot trading and Futures trading?
In crypto futures trading, contracts can be divided into coin-margined Futures and USDT(USDC)-margined futures based on the settlement asset and margin type. Based on whether there is an expiry date, they can also be divided into perpetual futures and delivery futures. Here, we use the most actively traded product in the market, USDT-margined perpetual futures, as the comparison benchmark.
Spot trading and USDT-margined perpetual futures trading differ fundamentally in terms of trading mechanism, risk structure, and asset ownership:
Comparison Item | Spot Trading | USDT-Margined Perpetual Futures Trading |
Asset ownership | You actually own the underlying asset | You only hold a contract and do not own the asset |
Settlement method | Immediate asset delivery | Settlement based on price fluctuations |
Leverage | No leverage by default | High leverage available |
Risk level | Relatively low | Higher, with liquidation risk |
Profit method | Profit from selling after the asset appreciates | Profit from long or short positions based on price differences |
Holding period | Unlimited | Unlimited, but subject to the funding rate mechanism that anchors Futures prices to Spot prices |
Suitable use cases | Suitable for long-term investing, conservative strategies, and users who want actual asset ownership | Suitable for short-term volatility trading and experienced traders familiar with risk management |
1.3 What are Maker and Taker?
In Spot trading, users are classified as either Maker or Taker based on whether their orders provide or consume market liquidity:
Comparison | Maker | Taker |
Execution | The order cannot be filled immediately and is placed in the order book waiting to be matched | The order is matched and filled immediately against existing market orders |
Liquidity | Provides liquidity to the market | Consumes market liquidity |
2. Spot Order Types Explained
2.1 What order types are supported in Spot trading?
MEXC Spot trading currently supports limit, market, TP/SL, OCO, and trailing stop orders to meet different trading strategy needs.
2.2 Why can't I enter a specific buy or sell price when using a market order?
The logic of a market order is to execute immediately at the best available market price. Therefore:
- Buy market order: Enter the amount of quote currency you want to spend, such as the amount in USDT.
- Sell market order: Enter the amount of base currency you want to sell, such as the amount of BTC.
A market order is executed based on real-time prices in the order book, so the exact execution price cannot be determined in advance.
3. Trading Fees and Cost Management
3.1 What are the fees for MEXC Spot trading?
MEXC Spot trading uses a differentiated fee structure:
- Maker: 0%
- Taker: 0.05%
You can check the latest Spot trading fee rates on the MEXC Fee Overview.
Tips to reduce Spot trading costs:
- Prioritize using limit orders to become a maker and enjoy 0% fees.
- Participate in MEXC's 0-fee Fest to further reduce trading costs.
3.2 Is there a minimum order limit for each trade?
Yes. Each trade is subject to minimum order quantity and minimum order value requirements. The minimum order limit varies by market. For example, the minimum for the USDT market is 1 USDT per order, while the minimum for the ETH market is 0.0001 ETH per order. For more details, please refer to the Spot Market Trading Rules.
Please note:
- Orders below the minimum limit will be rejected by the system.
- Minimum quantity requirements may vary by trading pair.
- Please check the minimum order limits on the trading page before placing an order.
4. Account and Fund Management
4.1 Why is my balance occupied and unavailable for trading?
When your open order has not been filled, the corresponding funds will be locked and cannot be used for other trades.
Solution: Find Open Orders on the trading page, check your unfilled orders, and click Cancel. The occupied balance will be released immediately and can be used again for trading.
Tips to avoid funds being occupied:
- Set order prices reasonably to improve the fill rate.
- Check and clear unnecessary open orders regularly.
- Market orders can be filled immediately and do not occupy your balance for a long time.
5. Order Management and Trading History
5.1 How can I check my trade history?
MEXC provides multiple ways to view your trading records:
1. Order and position panel: You can view your filled records in real time under Trade History in the order panel.
2. On Spot Orders page: Go to Orders → Spot Orders → Trade History to view your full order history, trade details, and fund records.
5.2 What is the difference between Open Orders, Order History, and Trade History?
These three sections correspond to different order statuses:
Comparison Item | Open Orders | Order History | Trade History |
Order status | Active orders that are not filled or only partially filled | Completed orders that were fully filled or canceled | Every trade that was actually executed |
Included content | Limit orders, and orders such as TP/SL waiting to be triggered | All completed orders, including final status information | All fill details, including partial fills |
Actions available | Can be canceled or modified at any time | For viewing only and cannot be modified | For viewing only and cannot be modified |
Display timing | Only shows currently active orders | Shows all historical orders | Shows all historical trades |
Relationship between orders and trades | 1 order = 1 record | 1 order = 1 record | 1 order may = multiple trade records |
Main purpose | Manage current unfinished trades | Review order execution results | Check the exact fill price, quantity, and time |
Typical use case | Check whether an open order is still waiting to be filled | Check whether a previous order has been completed | Analyze how a large order was filled in multiple trades |
6. Market Zones and Risk Identification
6.1 What are the Main Board, Innovation Zone, and Assessment Zone?
MEXC divides the Spot market into different zones to help users identify project risk levels:
Main Board:
- Includes mature and relatively stable mainstream tokens, such as BTC and ETH.
- Large market cap, strong liquidity, and more stable project performance.
- Suitable for: beginners, conservative investors, and long-term holding strategies.
Innovation Zone:
- Focuses on emerging popular projects and tokens at the forefront of new trends and technologies.
- Offers higher growth potential, but also comes with greater volatility.
- Suitable for: users with stronger market judgment and the ability to withstand price swings.
Assessment Zone:
- Includes early-stage or less active projects.
- Higher risk, lower liquidity, and possible delisting risk.
- Suitable for: high-risk-tolerance investors and users with stronger project research ability.
Risk reminder: The risk level generally increases across different market zones. Please choose trading products according to your risk tolerance.
7. Risk Reminder and Trading Tips
7.1 What risks should I pay attention to in Spot trading?
- Market volatility risk: Crypto prices are highly volatile and may cause significant asset depreciation.
- Liquidity risk: Small-cap tokens or projects in the Assessment zone may face insufficient liquidity, making it difficult to complete trades quickly.
- Project risk: Projects in the Assessment zone may be delisted, which may affect trading.
- Operational risk: Incorrect price settings or poor account management may lead to losses.
7.2 What are some tips for beginners trading Spot?
- Start small: Use a small amount of funds to get familiar with platform operations and order mechanisms.
- Prioritize mainstream tokens: Choose assets such as BTC and ETH that have better liquidity and relatively lower volatility.
- Use limit orders: Avoid the slippage risk of market orders and control your fill price more precisely.
- Set stop-loss orders: Use TP/SL orders to manage risk and protect your funds.
- Diversify your investments: Do not put all your funds into a single asset.
- Keep learning: Follow market developments and continue improving your trading skills.