How to calculate BingX leverage interest

To calculate interest on a cross margin trade, multiply leverage by the loan's APR and number of days open, then divide by 365.

Nov 25, 2024 at 05:54 pm

How to Calculate BingX Leverage Interest

BingX is a cryptocurrency exchange that offers leveraged trading. Leverage allows traders to multiply their profits (and losses) by borrowing funds from the exchange. BingX offers two types of leverage trading: cross margin and isolated margin.

Cross Margin

With cross margin trading, your entire account balance is used as collateral for your leveraged trades. This means that if one of your trades loses money, it can wipe out your entire account balance. However, cross margin trading also allows you to use your profits from one trade to cover losses from another trade.

To calculate the interest on a cross margin trade, you will need the following information:

• The amount of leverage you are using
• The annual percentage rate (APR) of the loan
• The number of days that your trade is open

The formula for calculating the interest on a cross margin trade is:

Interest = (Amount of leverage * APR) * (Number of days trade is open) / 365

Isolated Margin

With isolated margin trading, only the funds that you allocate to a specific trade are used as collateral for that trade. This means that if one of your trades loses money, it will not affect your other trades or your account balance. However, isolated margin trading also does not allow you to use your profits from one trade to cover losses from another trade.

To calculate the interest on an isolated margin trade, you will need the following information:

• The amount of leverage you are using
• The annual percentage rate (APR) of the loan
• The number of days that your trade is open
• The amount of funds that you have allocated to the trade

The formula for calculating the interest on an isolated margin trade is:

Interest = (Amount of leverage * APR) * (Number of days trade is open) / 365 * (Amount of funds allocated to trade)

Example

Let's say that you want to open a cross margin trade with 10x leverage. The APR on the loan is 10%. The trade is open for 30 days.

To calculate the interest on the trade, we would use the following formula:

Interest = (10 * 10%) * (30 / 365) = 0.82%

This means that you would pay 0.82% in interest on the trade.

Step-by-Step Guide to Calculating BingX Leverage Interest

1. Determine the amount of leverage you are using. This is the multiple of your own funds that you are borrowing from the exchange. For example, if you are using 10x leverage, you are borrowing 10 times your own funds.
2. Find the annual percentage rate (APR) of the loan. This is the interest rate that you will be charged on the borrowed funds. BingX offers different APRs for different types of loans.
3. Calculate the number of days that your trade is open. This is the length of time that you will be borrowing the funds from the exchange.
4. Determine the amount of funds that you have allocated to the trade. This is the amount of your own funds that you are putting at risk on the trade.
5. Use the appropriate formula to calculate the interest on the trade. The formula for cross margin trades is:

Interest = (Amount of leverage * APR) * (Number of days trade is open) / 365

The formula for isolated margin trades is:

Interest = (Amount of leverage * APR) * (Number of days trade is open) / 365 * (Amount of funds allocated to trade)

1. Pay the interest on the trade. BingX will automatically deduct the interest from your account balance at the end of the loan period.

Conclusion

Calculating the interest on BingX leverage trades is a simple process. By following the steps outlined in this guide, you can easily calculate the cost of borrowing funds from the exchange.