How to Trade SPYUSDT Perpetual Futures on MEXC: Leverage, Funding and Liquidation

Summary

SPYUSDT is a USDT-margined index perpetual futures contract available through MEXC Futures.

MEXC listed the contract on July 9, 2026 with:

The temporary zero-fee campaign mentioned in the listing announcement should not be treated as a permanent fee policy. Users must check their account and the live trading page for current rates.

Illustrative leverage sensitivity before fees, funding and liquidation.

What Are SPYUSDT Perpetual Futures?

SPYUSDT allows a trader to take leveraged long or short exposure connected to SPY’s market price without owning SPY or SPYON.

A perpetual contract has no scheduled expiration date. The position can remain open while:

• Margin requirements are met;
• The contract remains listed;
• Funding and trading costs are paid;
• Risk controls are not triggered.

SPYON Spot vs SPYUSDT Futures

How to Open a Long Position

A long position may profit if SPYUSDT rises and lose if it falls.

General steps:

1. Transfer USDT into the futures account.
2. Open the SPYUSDT market.
3. Select cross or isolated margin.
4. Choose leverage.
5. Select a market, limit or conditional order.
6. Enter the number of contracts.
7. Review required margin and liquidation price.
8. Submit and monitor the position.

How to Open a Short Position

A short position may profit if SPYUSDT falls and lose if it rises.

The execution process is similar, but the user selects the sell or short direction.

Short positions can be used for:

• Bearish speculation;
• Temporary portfolio hedging;
• Partial reduction of S&P 500 exposure;
• Relative-value strategies.

A short position is not a guaranteed hedge because SPYUSDT, SPYON and SPY can temporarily diverge.

How Contract Size Works

MEXC displays a contract value of:

1 contract = 0.001 SPY

If SPYUSDT trades at 740 USDT:

Notional value per contract = 0.001 × 740 = 0.74 USDT

A position of 1,000 contracts would therefore have an approximate notional value of 740 USDT before leverage.

What Is Leverage?

Leverage allows a trader to control a larger notional position with less initial margin.

Example:

• Position notional: 10,000 USDT;
• Leverage: 5x;
• Simplified initial margin: approximately 2,000 USDT.

Higher leverage:

• Reduces initial margin;
• Increases return on margin when correct;
• Accelerates losses when wrong;
• Moves the position closer to liquidation.

The availability of 20x leverage does not mean 20x is appropriate.

Cross vs Isolated Margin

Cross Margin

Cross margin allows eligible account collateral to support the position.

Potential advantage:

• More collateral may delay liquidation.

Main risk:

• Losses can affect a larger portion of the futures account.

Isolated Margin

Isolated margin limits the collateral assigned to a position.

Potential advantage:

• Maximum position-level loss can be more contained.

Main risk:

• The position may be liquidated sooner if the assigned margin is insufficient.

Index Price, Fair Price and Order-Book Price

MEXC distinguishes between several price concepts:

• Index price: reference based on the underlying market;
• Fair or mark price: risk-control price used for unrealized P&L and liquidation calculations;
• Order-book price: actual price available to buyers and sellers.

MEXC’s contract-information page states that risk controls include leverage limits, margin requirements, ADL and circuit breakers.

What Is the Funding Rate?

Funding is a periodic payment between long and short traders.

Generally:

• Positive funding means longs pay shorts;
• Negative funding means shorts pay longs.

The funding rate can change over time and should be checked on the live contract page rather than copied as a permanent number.

Liquidation Risk

A position may be liquidated when margin falls below the maintenance requirement.

Liquidation can occur because of:

• An adverse market move;
• Excessive leverage;
• Insufficient margin;
• Fees and funding;
• A sudden gap;
• Increased maintenance requirements.

A position can be liquidated even if the trader’s long-term market view later proves correct.

Automatic Deleveraging

MEXC enables automatic deleveraging for SPYUSDT. ADL may reduce profitable opposing positions when the insurance and liquidation system cannot fully absorb losses.

ADL risk tends to be more relevant during severe volatility and market imbalance.

Circuit Breakers

MEXC states that a circuit breaker can temporarily suspend SPYUSDT trading.

During a suspension:

• New executions may be unavailable;
• Existing orders may be canceled;
• No forced liquidations occur during the specified suspension;
• Other related markets may continue moving. 

This creates execution risk for hedgers who need to adjust positions urgently.

Trading Hours

SPYUSDT trades 24/7 according to MEXC’s listing announcement.

However, the underlying SPY market does not have equivalent continuous liquidity. Outside U.S. trading hours:

• The futures basis may widen;
• Index updates may rely on alternative reference information;
• Spreads may increase;
• Weekend news can cause gaps.

Fees

Potential costs include:

• Maker or taker fees;
• Funding payments;
• Bid-ask spread;
• Slippage;
• Liquidation fees;
• USDT conversion costs.

The launch promotion applied only to eligible users and regions for a limited period. Always check current rates.

FAQ

Does SPYUSDT provide ownership of SPY?

No. It is a derivative contract.

Can a trader short SPYUSDT?

Yes, subject to product access and margin requirements.

What is the maximum leverage?

MEXC announced up to 20x leverage.

What is one contract worth?

One contract represents 0.001 SPY in the current contract specification.

Can SPYUSDT be liquidated?

Yes. Leverage and margin create liquidation risk.

Does SPYUSDT trade on weekends?

MEXC lists it as a 24/7 market, subject to maintenance, risk controls and circuit breakers.

Risk Disclaimer

Perpetual futures are high-risk leveraged products. Losses can exceed the initial margin allocated to an individual position, particularly under cross margin.

This article is educational and does not recommend leverage or any specific trade.