[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 57 KB, 1600x800, binance futures.jpg [View same] [iqdb] [saucenao] [google]
23474958 No.23474958 [Reply] [Original]

could someone answer this for me ?
lets say you open a long margine trade x50 on any crypto and it starts to moon really really hard, do you have any reason to cash out ? does opening a long margine takes some fee every hour or something?

for exemple you open a x50 long on XRP at 0.25 and it pumps shorty after to 0.30 you pretty much know its not going back to 0.25 or lower why not keep your x50 long forever? sorry if this is a stupid question

>> No.23475034

self-bump

>> No.23475246

It doesn’t take fee for every hour. Binance would push the price and you may be liquidated.

>> No.23475431

>>23475246
what do you mean by binance would push the price?

>> No.23475932

>>23474958

Ok anon, there seem to be several things that you need to know. Assuming that by long margin trade you meant leveraged derivatives such as perpetual swaps, futures and options, there are certain things to keep in mind. Firstly, if you use perpetual swaps (those are futures without an expiry/maturity date), you'll have to pay a funding fee in certain intervals. An index is used to keep track of the current futures price. Should there be more longs than shorts, the futures price is going to be above the spot price of a certain asset and therefore the longs will have to pay the shorts a fee (and vice versa if the price is below spot price), this ensures that the futures price sticks to normal values and people don't start making up prices. In case of binance futures, this fee is going to be incurred every 8h.

A classic future has a set expiry/delivery date. That date is a clear limit as to how long you can keep your position open. This also goes for options.

Coming back to your question, would it be possible to keep a x50 levered position open indefinitely? Yes, but only if it's a perputal swap, and you'll have to pay the funding fee every 8h. If it's a simple future or option, you can't keep the position forever, at some point your position expires/ will be delivered. In other words, if you intend to hodl your bag, don't buy derivatives, stick to spot trading.

>> No.23475954

>>23475431
He means CZ will scam you. And to answer your question, yes you can do this. Cut your losses let your profits run, as the saying goes.

>> No.23476012

>>23475932
okay appreciate the long and well put together answer anon thank you

>> No.23476051
File: 274 KB, 600x1080, 1596625991730.png [View same] [iqdb] [saucenao] [google]
23476051

>>23475932

>> No.23476797

>>23474958
you have to pay
>opening position cost (due to divergence to the mark price)
>fee .04% taker .02% maker
>funding rate every 8 hours
all that based on notional value

>> No.23476817

>>23474958
the futures and leverage trading are rigged af, they will dump it for a fraction of a second to 0,0001 so you get liquidated and then it will go back to normal price

>> No.23477884

>>23476817
and there's nothing that can be done because it's the wild west of trading. All the shit the New York boys wish they can do openly happens daily in crypto.