Is there an overnight fee in the BigONE contract?

Overnight fees are imposed on perpetual contract positions held after daily settlement time at BigONE, calculated based on contract value, funding rate, and position holding duration.

Nov 23, 2024 at 02:15 pm

Is There an Overnight Fee in the BigONE Contract?

Introduction

Overnight fees, also known as financing fees, are charges incurred by traders who hold positions in perpetual contracts past the daily settlement time. These fees are designed to encourage market participants to close their positions before the end of the trading day and prevent excessive leverage and speculation.

Does BigONE Charge Overnight Fees for Contracts?

Yes, BigONE imposes overnight fees on perpetual contract positions that remain open beyond the daily settlement time.

How is the Overnight Fee Calculated?

The overnight fee for BigONE perpetual contracts is determined by the following formula:

Overnight Fee = Contract Value * Funding Rate * Number of Days Position is Held

• Contract Value: The notional value of the perpetual contract being held
• Funding Rate: A variable rate that is adjusted periodically to maintain balance in the market
• Number of Days Position is Held: The number of days that the position has been open past the daily settlement time

When is the Overnight Fee Calculated and Charged?

The overnight fee is calculated twice a day for BigONE perpetual contracts:

• 8:00 AM UTC: Charges are applied for positions held from 8:00 AM UTC on the previous day to 8:00 AM UTC on the current day
• 8:00 PM UTC: Charges are applied for positions held from 8:00 PM UTC on the previous day to 8:00 PM UTC on the current day

How is the Funding Rate Determined?

The funding rate for BigONE perpetual contracts is determined by the difference between the perpetual contract price and the underlying index price. When the perpetual contract price is trading at a premium to the index price, the funding rate will be positive, resulting in a fee for long positions and a rebate for short positions. Conversely, when the perpetual contract price is trading at a discount to the index price, the funding rate will be negative, leading to a fee for short positions and a rebate for long positions.

How Can Overnight Fees Impact Your Trading?

Overnight fees can have a significant impact on the profitability of your contract trading. If you are holding a long position, you will pay the overnight fee if the funding rate is positive. If you are holding a short position, you will receive the overnight fee if the funding rate is negative.

To minimize the impact of overnight fees, it is important to consider the funding rate and adjust your trading strategies accordingly. You can also use the overnight fee calculator provided by BigONE to estimate the potential fees for your specific contract positions.

Steps to Check the Overnight Fee on BigONE

1. Log In to Your BigONE Account: Visit the BigONE website and log in to your account.
2. Navigate to the Contract Trading Page: Click on the "Contracts" tab at the top of the page.
3. Select the Perpetual Contract: Choose the perpetual contract you want to trade.
4. Check the Funding Rate: The funding rate will be displayed on the contract trading page.

Additional Resources

• [BigONE Contract Fees](https://bigone.zendesk.com/hc/en-us/articles/4403428653755-Contract-Fees)
• [Overnight Fee Calculator](https://www.binance.com/en/support/faq/445002958451)