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Title: Margin Trading or Future Trading more expensive (interest / financing)? Post by: Fanta669 on February 03, 2021, 05:19:05 PM This is a question for experts. I wonder if I have to pay more interest on my margin trades or my future trades. Following example:
I pay a hourly interest rate of 0.003958% at MXC for a 10x margin position. When I open for the same amount a 10x future position at binance, will this be more expensive or cheaper? Thanks alot for your advise :-) Title: Re: Margin Trading or Future Trading more expensive (interest / financing)? Post by: jackg on February 03, 2021, 05:21:54 PM You're using binance yes (interest is 8%)?
From a quick calculation futures has a cost of: 34.672% a year so the margin would be a better choice if interest is less than that. Title: Re: Margin Trading or Future Trading more expensive (interest / financing)? Post by: Fanta669 on February 03, 2021, 05:45:02 PM Well at MXC the yearly margin interest rate is 0.003958% x 8760h = 34.67208% per year at MXC.
So Binance charge 8% per year for their futures? Did I understand this correct? Title: Re: Margin Trading or Future Trading more expensive (interest / financing)? Post by: jackg on February 03, 2021, 06:14:14 PM Well at MXC the yearly margin interest rate is 0.003958% x 8760h = 34.67208% per year at MXC. What are you trying to do? I thought you were talking about futures being that rate an hour, are you sure (if that's margin) its not per day or something?So Binance charge 8% per year for their futures? Did I understand this correct? Are you trying to borrow btc/usd in order to long that asset or borrow that asset in order to short it? Title: Re: Margin Trading or Future Trading more expensive (interest / financing)? Post by: Fanta669 on February 03, 2021, 07:03:39 PM Well, I only want to figure out if I should keep my 10x btc long position on MXC or if I should shift this position to Binance Future 10x. Right now I have a 500k margin btc long position (around 400k is loaned) on MXC, paying around 200$/day interest. So thats why I try to figure out if I can save money on Binance with a future coin contract. So I found this fee table, but cant find for which time frame the showed interest % rate: https://www.binance.com/en/support/articles/360033544231-Fee-Schedule-of-Binance-Futures
Thanks for you help Title: Re: Margin Trading or Future Trading more expensive (interest / financing)? Post by: GreatArkansas on February 04, 2021, 10:47:20 AM In the futures market, I think the fee that is talking of OP is the Funding Rate.
For what I understand funding rate is like for example, the more long position opened or maybe lets say the market is bullish, that's time you will gonna pay some fee. Opposite when more shorts are currently opened at the time. And those funding rates, most of the time it is different for each exchange, it is by percentage. You can use bybt.com to check the current funding rate for each exchange. https://i.imgflip.com/4wmx8j.jpg |
