How to calculate BingX margin handling fee

The margin handling fee on BingX is calculated as the sum of the trading fee and the margin interest rate, both of which vary depending on factors like account type, trading volume, and cryptocurrency.

Nov 27, 2024 at 01:18 pm

How to Calculate BingX Margin Handling Fee

Calculating margin handling fees on BingX involves a straightforward process that considers several key factors. Here's a detailed guide to help you understand the steps involved:

Step 1: Determine the Margin Trading Account Type

• Standard Margin Account: Available for all BingX users, it offers up to 5x leverage for both opening and closing positions.
• One-Way Margin Account: Exclusive to qualified users, it provides up to 10x leverage for opening positions and 5x leverage for closing positions.

Step 2: Calculate the Trading Fee

• Trading Fee: Charged based on the trading volume and varies according to the underlying asset and trading pair. BingX displays the trading fee percentage for each trading pair on its trading interface.

Step 3: Calculate the Margin Interest Rate

• Margin Interest Rate: Varies depending on the specific cryptocurrency being traded. It is calculated on an hourly basis and can change based on market conditions. Users can refer to the real-time margin interest rate displayed on BingX for the chosen cryptocurrency.

Step 4: Determine the Margin Utilization

• Margin Utilization: Represents the ratio of borrowed funds (margin loan) to the total account equity. It is important to manage the margin utilization to avoid a margin call. BingX allows users to adjust their margin utilization by adding or reducing the margin loan.

Step 5: Calculate the Margin Handling Fee

• Margin Handling Fee: Comprises two components: Trading Fee and Margin Interest Rate. The formula is as follows:

Margin Handling Fee = (Trading Fee + Margin Interest Rate) x Margin Utilization

Example Calculation:

• Trading Fee: 0.05% on BTC/USDT trading pair
• Margin Interest Rate: 0.005% on BTC for margin trading
• Margin Utilization: 50%

Margin Handling Fee = (0.05% + 0.005%) x 50% = 0.0275%

Additional Considerations:

• Margin handling fees are charged every 24 hours at 0:00 UTC.
• The fee is debited directly from the user's margin account balance.
• Users can view their margin handling fee details on the BingX trading platform under the "Orders" or "Trade History" tabs.
• It is recommended to optimize margin utilization and monitor market conditions to minimize margin handling fees and avoid potential losses.