Contract

Text

How much is the handling fee for a perpetual contract that does not close for a year

The handling fee for a perpetual contract with a notional value of $100,000 held open for a year with an annualized interest rate of 5% would be $50.

Nov 05, 2024 at 12:12 pm

How much is the handling fee for a perpetual contract that does not close for a year?

1. Perpetual Contract Overview

A perpetual contract is a type of futures contract that does not have an expiration date. This means that traders can hold their positions indefinitely, or until they choose to close them. Perpetual contracts are often used for hedging or speculative trading.

2. Handling Fees

Handling fees are charges that are applied to perpetual contracts when they are held open overnight. These fees are typically based on the notional value of the contract and the interest rate. The handling fee for a perpetual contract that does not close for a year will vary depending on the exchange and the contract specifications.

3. Exchange Handling Fees

The following table shows the handling fees for perpetual contracts on some of the major exchanges:

Exchange	Handling Fee
OKX	0.0005% per day
Binance	0.0005% per day
Bybit	0.0005% per day
Huobi	0.0005% per day
Deribit	0.0002% per day

4. Calculation

To calculate the handling fee for a perpetual contract that does not close for a year, you will need to know the following:

The notional value of the contract
The annualized interest rate
The number of days in a year

Once you have this information, you can use the following formula to calculate the handling fee:

Handling Fee = Notional Value x Interest Rate x (Number of Days / 365)

5. Example

Let's say you want to hold a perpetual contract with a notional value of $100,000 for a year. The annualized interest rate is 5%. Using the formula above, we can calculate the handling fee as follows:

Handling Fee = $100,000 x 0.05 x (365 / 365)

Handling Fee = $50

In this example, the handling fee for a perpetual contract that does not close for a year would be $50.

6. Conclusion

The handling fee for a perpetual contract that does not close for a year will vary depending on the exchange and the contract specifications. It is important to factor in these fees when determining the profitability of a perpetual contract trade.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Fear & Greed Index

Trade Now

Biggest Gainers

LUNA

$0.0848

57.19%

Trade Now
DEGEN

$0.0251

42.80%

Trade Now
SHOGGOTH

$0.1329

40.43%

Trade Now
BULL

$0.0815

36.74%

Trade Now
SKBDI

$1.02

36.15%

Trade Now
CAT

$0.0...04904

30.14%

Trade Now

Latest Crypto News

WallitIQ (WLTQ): Investors Positioning For A 34,000% ROI As Dogecoin And Shiba Inu Prices Compete For Dominance
2024-11-15 10:15:01
Fetch.ai (FET) Lags Behind Other AI Coins, Raising Concerns About Its Ability to Maintain Its Position
2024-11-15 10:15:01
Qubetics Redefines Cross-Border Payments with Blockchain, Targeting $707,000 Investment Potential While Algorand and Cosmos Ecosystem Lead November 2024
2024-11-15 10:15:01
Bitcoin Eyes $100,000 as It Continues Its Bullish Uptrend, Inspired by the Notorious Internet Meme, Pepe Outshines Everyone
2024-11-15 10:15:01
Dogecoin Soars After President-Elect Donald Trump Announces the Creation of the Department of Government Efficiency (DOGE)
2024-11-15 08:15:02
PEPE the Meme Coin with a Frog Mascot Took the Crypto World by Storm
2024-11-15 10:15:01

Related knowledge

How to calculate Upbit contract rate

Nov 15,2024 at 04:47am

A Comprehensive Guide to Calculating Upbit Contract RatesUpbit, a leading South Korean cryptocurrency exchange, offers a comprehensive suite of trading options, including cryptocurrency spot trading, margin trading, and futures contracts trading. Futures contracts are financial instruments that allow traders to speculate on the future price of an asset,...

How long does it take for Upbit contract settlement

Nov 14,2024 at 10:10pm

How Long Does It Take for Upbit Contract Settlement?Upbit, a renowned South Korean cryptocurrency exchange, offers a diverse range of trading options, including spot trading and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price movements of underlying assets without taking physical possess...

What is Upbit contract trading

Nov 14,2024 at 10:46pm

What is Upbit Contract Trading?Upbit is a South Korean cryptocurrency exchange that offers a wide range of trading options, including spot trading, margin trading, and contract trading. Contract trading, also known as futures trading, allows traders to speculate on the future price of a cryptocurrency without having to actually own the underlying asset....

What does Upbit contract trading mean

Nov 14,2024 at 10:22pm

What Does Upbit Contract Trading Mean?IntroductionUpbit, a leading South Korean cryptocurrency exchange, offers a range of trading options, including contract trading. Contract trading is a derivative instrument that allows traders to speculate on the price movements of underlying assets without owning them directly. This can provide opportunities for b...

How to read Upbit contract K-line

Nov 14,2024 at 02:44pm

How to Read Upbit Contract K-lineUpbit is a popular South Korean cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and contract trading. Contract trading is a type of futures trading that allows traders to speculate on the future price of a cryptocurrency without actually owning the underlying asse...

Tutorial on Upbit currency-based contracts

Nov 14,2024 at 06:30pm

Tutorial on Upbit Currency-Based ContractsUpbit is a well-known cryptocurrency exchange in South Korea that offers a variety of trading options, including currency-based contracts. These contracts are a type of derivative that allows traders to speculate on the price of an underlying asset, such as Bitcoin or Ethereum, without having to own the asset it...