This article introduces the trading fees, funding fees, position limits, and core rules of the HedgerX Exchange. Understanding these elements is crucial for effectively managing trading costs and strategies.
Contract Trading Fees
HedgerX offers competitive trading fees to support active traders. The fee structure is as follows:
- Maker and Taker Fees
• Maker Fee: As a market maker (placing limit orders to add market liquidity), you can enjoy lower fees. The standard maker fee rate is 0.02%.
• Taker Fee: As a taker (placing market orders that reduce liquidity), fees are relatively higher. The standard taker fee rate is 0.06%.
For details, visit: https://www.HedgerX.com/en/fee
- Funding Fees
Funding fees are periodic payments exchanged between traders to ensure contract prices remain aligned with the spot market price.
• Paid between traders: HedgerX does not charge funding fees. These fees are settled directly between long and short traders.
• Settled every 8 hours: Funding fees are settled at 00:00 (UTC+8), 08:00 (UTC+8), and 16:00 (UTC+8).
• Calculation Formula: Funding Fee = Position Value × Funding Rate
• Position Value: The total value of the position, calculated by multiplying the contract quantity by the entry price.
• Funding Rate: Determines who pays the funding fee.
• A positive funding rate means long traders pay short traders.
• A negative funding rate means short traders pay long traders.
- Impact of Leverage and Margin on Fees
• Higher leverage increases position size, which in turn affects trading costs and funding fees.
• Trading fees and funding fees are calculated based on position value, not account margin balance.
Contract Trading Limits
To ensure fair and efficient trading, HedgerX implements the following trading limits:
- Minimum Order Amount
The minimum order amount varies depending on contract type and trading pair. Examples include:
• BTC/USDT (USDT-Margined Contracts): Minimum trade amount 10 USDT.
• ETH/USDT (USDT-Margined Contracts): Minimum trade amount 10 USDT.
- Leverage Limits
HedgerX currently supports the following leverage levels:
• USDT-Margined Contracts: Up to 100x leverage.
• Coin-Margined Contracts (Under Development): Up to 100x leverage.
• USDC Contracts (Under Development): Up to 100x leverage.
For detailed leverage limits, please refer to the “Contract Information” page on the HedgerX official website.
Core Rules of Contract Trading
- Account Requirements
• Identity Verification (KYC): Users must complete at least Level 1 KYC verification to unlock full trading functionality.
• Contract Wallet: Ensure your contract account has sufficient funds to support trading.
- Supported Contracts
• The Contract Trading page displays all available USDT-Margined Perpetual Contracts. (Coin-Margined Contracts are under development).
- Trading Mechanism
• Orders are matched in real-time order books to ensure market liquidity.
- Liquidation Mechanism
• When account margin reaches the liquidation risk level, forced liquidation (margin call) is triggered.
• After liquidation, the remaining collateral is returned to the user’s account.
- Trading Restrictions
• Some contracts or trading pairs may be restricted due to regional regulatory requirements. Please check availability before trading.
Frequently Asked Questions (FAQ)
- What are the default contract trading fees?
• The default maker fee is 0.02%, and the taker fee is 0.06%.
- What is the minimum trading volume for contract trading?
• The minimum trading volume varies by contract.
• For example, BTC/USDT (USDT-Margined Contract): Minimum trading volume is 0.001 BTC.
- What happens if my position is liquidated?
• When liquidation occurs, the system will automatically close the position.
• All unsettled positions will be liquidated, and any remaining collateral will be returned to the account.
- Are there any regional restrictions for contract trading?
• Certain regions restrict specific trading pairs due to regulatory policies. Please verify any restrictions before trading.
Disclaimer and Risk Warning
All trading tutorials provided by HedgerX are for educational purposes only and do not constitute financial investment advice. All strategies and examples are based on hypothetical market conditions, and actual market conditions may vary.
Cryptocurrency trading involves high risk and may result in partial or total loss of funds. Past performance does not guarantee future results. Please conduct thorough research and understand the risks before trading.
HedgerX is not responsible for users’ trading decisions.
HedgerX – Empowering You to Take Control of Your Trading Future!