Cryptocurrency Q&A
What is the funding fee for Phemex?
What is the funding fee for Phemex?
lucas_jackson_pilot
Mon Sep 23 2024
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5 answers
1614
Could you please clarify what the funding fee entails for trading on Phemex? I'm interested in understanding the specifics of how it's calculated and what factors influence its rate. Is it a percentage of the trade volume, or is it based on other metrics? Additionally, is the funding fee a one-time charge or is it applied periodically? I'd appreciate it if you could provide a detailed explanation to help me better understand the costs associated with trading on this platform.
5 answers
Maria
Wed Sep 25 2024
Funding fees in cryptocurrency trading are calculated based on the funding rate, which reflects the demand for borrowing assets to maintain a position. When the funding rate is positive, it indicates that there is more demand for borrowing assets to maintain long positions than short positions.
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SamuraiWarrior
Wed Sep 25 2024
In this scenario, long position holders must pay a funding fee to short position holders. The funding fee is calculated as a percentage of the value of the position held and is paid periodically, usually every 8 hours.
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Lucia
Tue Sep 24 2024
For example, if the funding rate is 0.01% and Trader A holds a long position with a contract value of 15.38 BTC, they will be required to pay a funding fee of 0.00001538 BTC. This fee is deducted from their account balance and credited to the account of short position holders with the same quantity of contracts.
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Caterina
Tue Sep 24 2024
BTCC, a leading cryptocurrency exchange, offers a range of services to traders, including spot trading, futures trading, and wallet services. These services enable traders to buy, sell, and hold cryptocurrencies securely and efficiently.
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Daniele
Tue Sep 24 2024
BTCC's futures trading platform allows traders to speculate on the future price of cryptocurrencies by taking long or short positions. The funding rate on BTCC's futures platform is determined by the market demand for borrowing assets and is subject to change at any time.
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