Understanding 500x Leverage
MEXC's 500x maximum leverage is the highest offered by any major cryptocurrency exchange. At 500x leverage, you control a position 500 times the size of your initial margin. A $10 deposit controls a $5,000 position. A 0.2% favorable price movement returns 100% on your $10 investment. The inverse is equally true: a 0.2% adverse move liquidates your entire $10.
To understand why 500x exists: it serves micro-scalping strategies where traders take very small positions on very short timeframes with tight stop-losses. At 500x leverage with a $10 margin and a stop-loss at 0.1% adverse price movement, you risk only $5 but participate in a $5,000 notional trade. For experienced algorithmic traders running high-frequency strategies, this can provide utility that lower leverage cannot.
For the vast majority of traders — including most experienced ones — leverage above 20x is inadvisable. The higher the leverage, the less room for price fluctuation before liquidation, making precise timing nearly impossible in volatile crypto markets.
MEXC Leverage vs Competitor Maximum Leverage
Compared to other major exchanges, MEXC's 500x is far ahead of the competition: Binance maximum 125x, OKX maximum 125x, Bybit maximum 200x, Bitget maximum 125x, KuCoin maximum 100x, Kraken maximum 50x, Coinbase maximum 10x. Only Bybit comes close to MEXC's leverage cap at 200x, and even that is less than half of MEXC's offering.
For traders who specifically need high leverage — whether for micro-position scalping, hedging, or arbitrage — MEXC is the only major exchange providing access above 200x. This makes MEXC uniquely positioned for traders with legitimate high-leverage use cases.
It is worth emphasizing that higher maximum leverage does not make an exchange better for most traders. Many experienced traders never use more than 5-10x and prefer exchanges with better liquidity, tighter spreads, and more advanced order types over maximum theoretical leverage.
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Liquidation Mechanics at High Leverage
At 500x leverage, your liquidation price is approximately 0.2% from your entry price (factoring in fees and maintenance margin). This means price discovery on a new position has very little tolerance — even the spread between bid and ask on entry can be significant relative to the liquidation buffer.
MEXC uses an Auto-Deleveraging (ADL) system as a backstop if the Insurance Fund is depleted. ADL reduces the positions of the most profitable traders to cover losses from liquidations that exceed the fund. This is a last resort mechanism and rarely triggers, but traders with highly profitable leveraged positions should be aware of it.
In isolated margin mode at 500x, you cannot lose more than your allocated margin for that position. The position closes before your account balance goes negative. Cross margin mode at very high leverage is particularly dangerous as losses can consume your entire futures wallet balance before the liquidation price is reached.
Practical Use Cases for High Leverage on MEXC
Legitimate use cases for 100x+ leverage are narrow but real. Delta-neutral hedging: a market maker hedging a large spot inventory with a futures short can use high leverage on a small notional hedge to minimize capital tied up. The risk here is understood and manageable because the long-short relationship neutralizes directional exposure.
Altcoin scalping: some traders use MEXC's high leverage on altcoin perpetuals to take very short-duration scalps with tiny position sizes, using tight stops. The high leverage allows meaningful dollar exposure from minimal margin, with the stop-loss preventing catastrophic loss.
Most retail traders should use MEXC's leverage slider to set 2x-10x for swing trading and 10x-25x for active day trading. The existence of 500x on the platform does not mean it should be used — it simply means the option exists for the narrow category of traders who have a legitimate strategy requiring it.