Interest Rate System For BitNasdaq Future Trades

Future Trading involves borrowing funds in form of leverage from BitNasdaq to open bigger positions, amplifying potential profits and losses, with interest as the cost of borrowing. This interest is calculated based on the borrowed amount and the duration of use.

How Often Will The Interest Be Charged?

BitNasdaq charges interest on Future Trading three times a day, with the interest accruing every 8 hours. This means that interest is applied in three equal intervals over a 24-hour period. In simple words, interest is charged 3 times a day after every 8 hours. The charges are automatically processed by BitNasdaq.

Where Can I Check My Current Interest Rate?

Users can easily check their Future Interest Rate by visiting the Handling Fee page on the BitNasdaq platform. Users also have the option to check their interest rates on the VIP & My Fee page on the BitNasdaq website and the VIP & My Fee tab on the BitNasdaq app. This dedicated page provides detailed information on Future Trading Interest Rates for every coin listed on the exchange. On this page, users can view the current interest rates applicable to their future trades across various cryptocurrencies, ensuring they have the necessary information to manage their trading costs effectively. The Handling Fee page is designed to be a resource, offering transparency and clarity on the fees associated with future trading.

How Is The Interest Calculated?

To better understand how the daily interest rate on Future Trading works, let's break down the calculations with a detailed example.

The current daily interest rate for Future Trading on BitNasdaq is 0.22%, and this rate remains consistent regardless of the amount of leverage a user chooses to take. The interest charged in USDT depends on both the leverage applied and the amount of USDT on which the leverage is taken.

For instance, if a user decides to take 10X leverage on an initial amount of 100 USDT, the leverage effectively increases the trading amount to 1,000 USDT, 10 times the original amount. The interest charged is then calculated on the full 1,000 USDT.

Given the daily interest rate of 0.22%, let's calculate the interest for 8 hours. The daily rate of 0.22% can be divided by three, since there are three 8-hour periods in a day, resulting in an 8-hour interest rate of 0.073%.

Now, applying this 0.073% interest rate to the leveraged amount of 1,000 USDT, the interest charged every 8 hours would be:

Interest = Leverage Amount x Interest Rate

Interest = 1,000 x 0.073%

Interest = 0.73

So, the user would be charged 0.73 USDT in interest for every 8 hours that the position is held. This ensures users are aware of the cost implications of their leveraged positions, allowing for more informed trading decisions.