How does Eureka exchange leverage charge?

European Exchange’s leverage fees are calculated based on the leverage multiple, basic rate and position holding time, including opening, holding and closing fees. The opening fee is used for risk control and borrowing costs, and the hourly position holding fee is used to pay interest. There may also be additional fees for holding and closing positions overnight.

Detailed explanation of the margin handling fee of Eureka Exchange

European Exchange provides users with leverage trading services, which allows users to trade with funds higher than their account balances. In order to use the leverage service, users need to pay a certain handling fee.

Calculation of leverage fees

The leverage fees of Eureka Exchange are calculated according to the following formula:

Fees = Leverage times Basic rates Position time

Leverage times: Borrowed funds in leveraged transactions Ratio to own funds.

Basic fee rate: Varies depending on the trading pair and leverage multiple, usually between 0.01%~0.05%.

Position holding time: The longer the position is held, the higher the handling fee.

Types of leverage fees

European Exchange’s leverage fees are divided into two categories:

• Opening fees: Collected when users open a position, used to compensate for platform risk control and fund lending cost.
• Position handling fee: It is charged every hour when a user holds a position and is used to pay the platform’s fund lending interest.

Special circumstances of leverage fee

• Overnight holding fee: If the user opens a position before 3 pm (UTC+8) and holds the position overnight, he or she will need to pay an additional overnight holding fee.
• Closing fee: When a user closes a position, a closing fee may be charged, which is usually the same as the opening fee.

For example

Suppose Xiao Ming uses 10 times leverage to trade BTC/USDT on Eureka Exchange, with a basic fee rate of 0.02% and a position holding time of 1 hour.

• Opening fee: 10 0.02% 1 = 0.002 BTC
• Holding fee: 10 0.02% 1 = 0.002 BTC

Therefore, Xiao Ming’s total handling fee for this margin transaction is 0.004 BTC.

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