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Chinese users can conduct leveraged trading. We can conduct currency leverage and contract trading.
Coin-to-coin leveraged trading is essentially coin-to-coin trading. If you want to gain greater profits and losses through spot trading, but your principal is insufficient, you can use the leverage function of coin-to-coin leverage to borrow coins for spot trading. Borrowing coins will generate interest, and coin-to-coin leverage supports a maximum leverage of 0.01-10 times.
The 5x10x on the page refers to the highest supported coin-to-coin leverage of 5 times or 10 times coin-to-coin leverage.
The contract is a standardized virtual contract formulated by the exchange, which stipulates the delivery of a certain amount of goods at a certain time. It is a transaction agreed upon by both long and short parties, so the contract does not require borrowing coins, and there is no interest. The maximum leverage supported by the contract is 0.01 to 100 times.
There are differences in the profit and margin calculation formulas and handling fee rates between the two.
The contract can adjust the leverage multiple here.
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Binance official website registration link: 20% transaction fee discount
How to calculate margin trading fees?
The transaction fee will be deducted from the assets you receive. For example, if you buy ETH/USDT, the fee is paid in ETH. If you sell ETH/USDT, the fee is paid in USDT.
For example:
You place an order to buy 10 ether at 3,452.55 USDT per share:
Transaction fee = 10 ETH * 0.1% = 0.01 ETH
Or you place an order to sell 10 ether at 3,452.55 USDT per share:
Transaction fee = (10 ETH * 3,452.55 USDT) * 0.1% = 34.5255 USDT
How to calculate contract fees?
The higher the leverage, the higher the commission fee, as leverage increases the size of your position
For example, the commission for placing an order is 0.02% for ordinary users, and the commission for taking an order is 0.04%
Suppose you have 100 USDT and you open a market order with 125x leverage.
100*125 = 12500 USDT position nominal value
12500*0.04% = 5 USDT will be the handling fee for opening this position.
If you lower your leverage, the fees are smaller, here is an example:
Suppose you have 100 USDT and you open a market order with 10x leverage.
100*10 = 1000 USDT position nominal value
1000*0.04% = 0.4 USDT will be the handling fee for opening this position.
You must always consider how leverage will affect your order size so you can easily gauge your trading costs.
U-based fee = transaction quantity x transaction price x fee rate (taker: 0.05%, maker: 0.02%)
Coin-based fee = (number of contracts x multiplier / mark price) x fee rate (taker: 0.04%, maker: 0.02%)
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