💵When it comes to cryptocurrency trading, understanding rollover fees is essential for any trader, especially when using futures or leverage. Let’s go over everything you need to know about these fees and how they impact your profits and strategy.


💵What are the Rollover Fees?

Rollover fees, or rollover fees, are fees charged when you leave your trades open into the next day.

This fee is charged as compensation to the platform for the costs of managing the funds used in the transaction.

The fee percentage varies depending on the type of financial asset, the size of the trade, and the leverage used.


💵How do rollover fees work?

1. Fee application date:
Fees are charged when a trade exceeds the trading day's rollover time, which is often midnight platform time.


2. Leverage increases fees:
When using leverage, the value of the trade is much larger than the deposited margin, which means higher fees.


3. Discount mechanism:
Fees are deducted directly from your balance or added to a negative balance if there are insufficient funds.


💵Practical example:

Open a trade: You bought $1,000 worth of Bitcoin using 10x leverage (total value: $10,000).

Rollover Fee: If the daily rollover fee is 0.05% of the trade value, you will pay $5 for each night you keep the trade open.

Long-term impact: If the trade stays open for 10 days, you will pay $50 in fees, which will significantly impact your profits.


💵Why should you pay attention to rollover fees?

1. Accumulation of costs:
Over time, fees add up to a significant burden, especially if you're not making enough profit to offset them.


2. Volatile market:
In highly volatile markets, you may incur additional fees without making any gains, resulting in double losses.


3. Negative balance:
If you do not have enough balance to cover the charges, your balance may turn negative, requiring a Negative Balance Clearance.


💵How to avoid or reduce rollover fees

1. Close trades early:
If you are a beginner, try to close your trades before the end of the trading day to avoid rollover fees.


2. Use short-term strategies:
Focus on day trading rather than holding trades for long periods.


3. Monitor your platform’s fee policy:
Extension fees vary from platform to platform; make sure you understand the terms of the platform you are using.


4. Manage risks carefully:
Do not overuse leverage to avoid increased fees.


5. Thorough planning:
Plan your market moves in advance, and take into account any additional costs that may affect your profits.


Rollover fees are an unavoidable part of cryptocurrency trading, especially with futures. These fees can cause unexpected losses if not handled carefully.

Good planning, risk management, and understanding platform policies can help you minimize the impact of these fees.

Remember that successful trading depends on well-thought-out strategies, not just on the desire to make quick profits.


Trade smart, and always consider the impact of hidden costs on your trades.

☠️ Note: In this post we are talking about Fee Alert, not Liquidation Warning. Liquidation Warning is sent when your trades reach the risk of being liquidated, where:

1. Send the first alert when the liquidation risk reaches 80%.


2. Sending the second warning via email (Gmail), “Congratulations” 😂 from the platform, informing you that the account has been completely liquidated (100%), which means that the account balance has become zero.

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