I'm curious, can you please elaborate on the fee structure for perpetual futures? Specifically, what are the typical costs associated with trading perpetual futures contracts? Are there any additional fees to consider beyond the standard trading fees? I'd like to understand the overall cost implications before engaging in perpetual futures trading.
Cryptocurrency trading involves various financial aspects, one of which is the funding fee. This fee is a crucial aspect of perpetual futures trading, and it plays a significant role in maintaining the price equilibrium between perpetual contracts and spot markets.
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KatanaBladeThu Sep 19 2024
The funding fee formula is straightforward: Funding Fee = Position Value * Funding Rate. By using this formula, traders can easily calculate the amount of funding fee they will pay or receive at the end of each funding interval.
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CryptoLodestarGuardThu Sep 19 2024
At the end of each funding interval, all open perpetual futures positions undergo a funding process. This process ensures that the price of perpetual contracts remains aligned with the spot market price.
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benjamin_rose_authorThu Sep 19 2024
BTCC, a leading cryptocurrency exchange, offers a comprehensive range of services, including spot, futures, and wallet services. Its futures trading platform is designed to cater to the needs of both experienced and novice traders.
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ValentinaThu Sep 19 2024
The funding fee is calculated based on the funding rate, which is determined by the difference between the interest rates of the base and quote currencies, as well as other market factors.