By opening a margin-based position, you will receive a loan and will be able to trade with the borrowed funds. Keep in mind that all loans on Nexo Pro come with a periodic interest, which is charged every 15 minutes.
Note: Loans repaid in less than 15 minutes after opening the trade will still be charged interest (origination fee). For example, if you open a leveraged trade and close it in 4 minutes, you will be charged interest for the first 15 minutes.
Our yearly interest rates are listed on the Margin Trading page. Only the assets presented in this page are available for Margin trading at the moment. To calculate the interest for 15 minutes, you can use the following formula:
Interest for 15 minutes = Outstanding Loan * Yearly Interest Rate / (365 x 96)
For example, consider the following loan with its respective annual interest rate:
- Outstanding Loan = 15,000 USDT
- Yearly interest rate for USDT = 7.30%
Then, the interest will be calculated, as follows:
- For 15 minutes = 15,000 USDT x 7.30% / (365 x 96) = 0.03125 USDT
- For 1 hour = 0.03125 USDT x 4 = 0.125 USDT
- For 1 day = 0.125 USDT x 24 hours = 3.00 USDT
- For 1 week = 3.00 USDT x 7 days = 21.00 USDT
- For 1 year = 3.00 USDT x 365 = 1095.00 USDT
- In order to check the incurred interest, the user needs to check their Activity tab under Interest.
- The above values are obtained through approximate calculations for exemplary purposes only.