How much is the handling fee for CoinEx 100 times leverage?

Traders leveraging CoinEx's 100x derivatives trading opportunity must pay a handling fee of 0.02% as a maker or 0.05% as a taker, calculated based on the notional value of their position.

Nov 26, 2024 at 10:10 am

How Much is the Handling Fee for CoinEx 100 Times Leverage?

CoinEx offers crypto derivatives trading with up to 100x leverage, allowing traders to amplify their potential profits. However, it's crucial to understand the associated handling fees to make informed trading decisions.

1. Understanding Leverage and Margin Trading

Leverage refers to the practice of borrowing funds to increase the amount of capital available for trading. In the context of CoinEx, 100x leverage enables traders to control positions worth 100 times their initial margin.

Margin trading involves utilizing borrowed funds as collateral to trade larger positions. Traders must maintain a minimum margin balance to cover potential losses and avoid forced liquidations.

2. CoinEx's Handling Fee for 100x Leverage

CoinEx charges a handling fee for 100x leverage trading as compensation for providing the borrowed funds. This fee is calculated as a percentage of the notional value of the position, which represents the total value of the leveraged trade.

The handling fee for 100x leverage on CoinEx is structured as follows:

• Maker: 0.02%
• Taker: 0.05%

3. Calculating the Handling Fee

To calculate the handling fee for a 100x leverage trade, follow these steps:

• Determine the notional value of your position: Multiply the base asset quantity by the leverage multiple (e.g., 1 BTC x 100x leverage = 100 BTC notional value).
• Apply the appropriate handling fee percentage based on your order type (maker or taker).
• The resulting amount represents the handling fee for your 100x leverage trade.

Example:

Suppose you place a buy order for 1 BTC with 100x leverage. The notional value of your position is 100 BTC. As a maker, the handling fee would be:

Handling Fee = 0.02% x 100 BTC = 0.02 BTC

4. Handling Fee vs. Funding Fee

The handling fee should not be confused with the funding fee, which is charged during perpetual futures contracts. Funding fees ensure that traders with leveraged long positions pay a premium to those with leveraged short positions.

5. Risk Management Implications

Leverage trading amplifies both potential profits and losses. While higher leverage can enhance profits, it also increases the risk of liquidations. Traders should carefully manage their margin and use stop-loss orders to mitigate risks.

6. Conclusion

CoinEx's handling fee for 100x leverage should be considered before engaging in leveraged trading. Understanding the fee structure and the underlying risks is essential for making informed decisions and maximizing trading outcomes.