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How to calculate the BigONE contract handling fee?

To calculate the BigONE contract handling fee, traders multiply the contract value (contract size x underlying asset price) by the handling fee rate (a percentage based on contract type, volume, and VIP level).

Nov 23, 2024 at 12:54 pm

How to Calculate the BigONE Contract Handling Fee?

The BigONE contract handling fee is a key consideration when trading futures contracts on the BigONE exchange. Understanding how to calculate this fee is crucial for traders to manage their costs and make informed trading decisions.

Step 1: Determine the Contract Specifications

Before calculating the handling fee, traders need to determine the specifications of the contract they are trading. These specifications include:

  • Contract size: This represents the number of units or assets underlying the contract.
  • Tick value: This is the minimum price change allowed for the contract.
  • Multiplier: This is a factor that converts the contract value into the currency used for settlement.

Step 2: Calculate the Contract Value

The contract value is the value of the underlying asset at the current market price. It is calculated as follows:

Contract Value = Contract Size x Underlying Asset Price

Step 3: Calculate the Handling Fee Rate

The handling fee rate is a percentage of the contract value charged by BigONE for each transaction. This rate varies based on the type of contract being traded, the trading volume, and the VIP level of the trader.

Step 4: Calculate the Handling Fee

The handling fee is calculated as follows:

Handling Fee = Contract Value x Handling Fee Rate

Example:

Consider a trader trading a Bitcoin futures contract with the following specifications:

  • Contract size: 1 BTC
  • Tick value: $1
  • Multiplier: $100
  • Underlying asset price: $38,000
  • Handling fee rate: 0.05%

Using these values, the calculations are as follows:

  1. Contract Value = 1 BTC x $38,000 = $38,000
  2. Handling Fee = $38,000 x 0.05% = $19.00

Additional Considerations:

  • The handling fee is charged separately for both opening and closing a contract position.
  • The handling fee rate may vary based on market conditions and trading volume.
  • Traders with higher VIP levels may receive discounts on handling fees.
  • It is important to note that additional fees, such as maker/taker fees, may also apply to futures trading on BigONE.

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.

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