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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:

ExchangeHandling Fee
OKX0.0005% per day
Binance0.0005% per day
Bybit0.0005% per day
Huobi0.0005% per day
Deribit0.0002% 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!

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