People often ask me whether or not it’s wise to hold leveraged positions long term on perp contracts when perp contracts attract fee’s every 8 hours. We usually recommend people who want to hold long term leveraged trades open them on futures contracts with an expiry date in the future as these incur less fees. However, as restrictions keep getting tighter and tighter around the world (governments don’t want us getting rich now) many traders are losing the option to be able to trade futures.
So I decided to do a long term trade test on a perp contract to document my results and really work out whether or not it’s actually that bad to hold long term positions on perp contracts. I have just closed a perp trade which I held for 2 months (you read that right!) and so I wanted to document my results and my learnings in order to answer this question.
UNDERSTANDING FUNDING FEES
The exchange that I used to take this trade was Bitunix and this part of my results are very important. You see, all exchanges charge fees for opening and closing leveraged trades and they also have another fee called a “funding
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7 Responses
I trade perps and I didn’t know about these differences, thank you, very useful 😀
Ok i’m moving to Bitunix today! what she said haha
Annii, you mind reader, EXACTLY the question that’s been swimming around in my head, thank you SO much for your dedication to growing. learning and earning!
It was shock for me reading the results of your experiment. Thanks
Definitely am moving to Bitunix.
WOW! Great info! Thank you so much. Annii!
Loved this info !
I’m grateful to be educated – finally – in this question of fees, perps, and futures.