I saw a question on another Q&A platform. A user with high leverage made a 125x transaction and earned 4% after closing the position. But the assets still lost 8.5%?
I saw that all the losses were due to handling fees. Why is this? How can I make more money?
According to the platform fee calculation formula, "position value × handling fee rate = handling fee", we can get a message. If you open a 100x leverage and trade at a pure limit price, your position must be profitable at least 4% to make money. Similarly, for pure market price trading, your position must be profitable to more than 10% to make money.
Let me give you an example:
900u uses 100 times leverage to buy 1 Bitcoin worth 90000u. The value of the position at this time is 90000u.
The handling fee generated by the pending order is 90000×0.02%=18. The opening and closing points need to be set manually for the pending order.
The handling fee generated by the taker order is 90000×0.05%=45. The system automatically enters the market for the taker order (the system will enter at the current best price).
The handling fee for a transaction (buy and sell) is 36 or 90.
(The above is just an example, do not imitate!!!)
For contract users, the handling fee issue is unavoidable. We must understand its calculation method to make money in our hearts. The most unreliable thing in trading is luck.
So how can we make more money?
At this time, the advantage of handling fee reversal is revealed. Through reversal, you can get back part of the handling fee, which is equivalent to saving money in disguise.
If you open a reverse hold, the handling fee will be returned to your own account. Even if you lose money on one or two orders, if the loss is less than your monthly commission, you will still make money in the end.
For old contract users, you must get a reverse hold, otherwise the loss will be huge. If you need it, Xiao Jiucaihua Assistant can provide help.
