Funding rates in crypto futures are the periodic payments between traders that keep perpetual contracts in line with spot prices. When funding is positive, longs pay shorts. When negative, shorts pay longs. This small number has a big impact: it…
Most brokers earn fees when traders borrow leverage. This applies to leveraged products only and does not apply to spot trading or unleveraged investing. Leverage increases broker revenue because the fees scale with position size, even when traders lose. It…
Yes, whenever you trade with leverage in forex, crypto, or stocks, you always pay back the amount you borrowed from your broker. This happens automatically when you close the trade, whether you end in profit, loss, or break-even. You repay…
Leverage increases the fees you pay because it increases your position size. A trader with a $587 account at 1:25 leverage opens a position of $14,675 and pays trading fees on the full $14,675, not the $587 deposit. The higher…