How to calculate Bitcoin leverage fees

The handling fee for Bitcoin leveraged trading includes two items: Transaction handling fee: based on a percentage of the transaction amount, such as 0.1% for spot trading and 0.05% for leveraged trading. Funding rate: reflects the cost of holding a position, which is determined by the holding direction of most traders and can be positive or negative.

Bitcoin leverage fee calculation method

The handling fees generated in Bitcoin leverage transactions mainly include two parts: transaction procedures fees and funding rates.

Transaction fee

Transaction fee refers to the fee paid to the exchange when conducting Bitcoin leverage transactions. This fee is usually based on a percentage of the transaction amount. For example, some exchanges charge a 0.1% fee for spot trades and a 0.05% fee for leveraged trades.

Calculation method:

Transaction fee = transaction amount The rate is 0.05%, then the transaction fee is:

10,000 US dollars × 0.05% = 5 US dollars

Funding rate

Funding rate A fee unique to leveraged trading that reflects the cost of holding a position. When most traders hold positions in the same direction, the funding rate will be positive, meaning longs (buys) need to pay shorts (sells); when most traders hold positions in the opposite direction , the funding rate will be negative, meaning shorts will need to pay longs.

Calculation method:

Funding rate = Position value × Funding rate

For example, if your position value is $5,000, and the funding fee The rate is 0.01%, then the funding rate every 8 hours is:

5,000 USD × 0.01% × 8 = 0.4 USD

Total handling fee

The total handling fee for Bitcoin margin trading is equal to the transaction fee plus the funding rate:

Total handling fee = transaction fee funding rate

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