News for hackers. Stuff that matters.

A comment on I watched a friend of mine pump a shitcoin on Binance by buying billboards. Parent comment

Re:I watched a friend of mine pump a shitcoin on Binance by ... by sdfhdhjdw3 on Tuesday July 12, 2022 @12:15PM (#32072075)
Hmmmm do fees scale with leverage? I don't know if that's true...

My understanding is that leverage is profitable to trading platforms, not because the fees are bigger, but because bigger leverage is "more fun" and so people trade more.

I don't know, you might be right.

[ Parent | on HN ]
Re:I watched a friend of mine pump a shitcoin on Binance by ... by cersa8 on Tuesday July 12, 2022 @12:51PM (#32072643)
The fee is a percentage of the contract size, so higher leverage allows for bigger orders is higher fees.
[ Parent | on HN ]
Re:I watched a friend of mine pump a shitcoin on Binance by ... by sdfhdhjdw3 on Tuesday July 12, 2022 @12:58PM (#32072748)
The contract size doesn't change with leverage.

Do you mean a percentage of the notional value?

[ Parent | on HN ]
Re:I watched a friend of mine pump a shitcoin on Binance by ... by cersa8 on Tuesday July 12, 2022 @04:48PM (#32075480)
Sorry, you are correct, the fee is a percentage of the notional value.
[ Parent | on HN ]