I plan to open a Long position on BNB/USDT with 5x leverage. However, I noticed that there is a cost of 200 USDT to open this position, which I don’t quite understand. Can someone clarify whether this cost is a fee or if it will be returned to me?

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Posted in Binance Reddit

8 Comments

  1. Beatywithbrain09 on 23. March 2023 at 22:58

    The cost of 200 USDT to open a position on Binance Futures is a fee called the “initial margin” or “IM”. This fee is required to open a leveraged position and is used to cover any potential losses that may occur in the trade.

    The initial margin is not returned to you but will be used to maintain your position in case of any losses. However, if you close your position without any losses or with profits, the initial margin will be returned to you.

    In addition to the initial margin, there may also be other fees, such as funding fees and trading fees, that you should be aware of before trading on Binance Futures.

     


  2. 44quattro44 on 23. March 2023 at 22:58

    You want to open a futures trade with size of 1000USDT and 5x leverage. You’re wondering about the 200USDT cost, what’s 200*5?

     


  3. Helpful-Sink-9466 on 23. March 2023 at 22:58

    I would wait forthe next 3hrs if cpi numbers are highit will dump on you or pump

     


  4. AlexSokolenko on 23. March 2023 at 22:58

    #Iguverse is doing crypto AI and that #IGU will soon be listed on OKX. This is a real AI gem that will fly away like many other AI tokens. Igu the best only up only forward!)))

     


  5. quangthanh090301 on 23. March 2023 at 22:58

    binance is just misleading with their language, my friends confused about the same thing. its just your position or margin, multiply by leverage (5 this case) gives you your size..

     


  6. kdaveT on 23. March 2023 at 22:58

    nah you edited that just think 23.16 * 5 Leverage

     


  7. snr-encabulator-eng on 23. March 2023 at 22:58

    This is how you degen

     


  8. BinanceCSHelp on 23. March 2023 at 22:58

    Hello there. Thank you for your question.
    Before opening a position, traders should ensure that they have a minimum amount of funds in their wallet balance. The initial margin and open losses are included in the cost of opening a position (if any). When traders place an order, Binance includes open losses as one of the costs required to open a position in order to avoid forced liquidation.
    Please, refer to this page to find more detailed info: https://www.binance.com/en/support/faq/how-to-calculate-cost-required-to-open-a-position-in-perpetual-futures-contracts-87fa7ee33b574f7084d42bd2ce2e463b
    VG