Actually I mean a longer you let your position opens, a more interest you will have to pay for an exchange and therefore even if your position is at profit when you close it, you will have less profit at the end.
I should use interest and profit differently to avoid confusion.
Perhaps you are talking about margin trading offered by Binance and a few other exchanges?
Well, I am not a fun of it and not so familiar with it.
But as for trading derivatives (perpetual swaps and futures). There's funding rate that keeps changing from positive to negative every 8 hours according to most derivative exchanges and the market conditions dictate it, not how long someone keeps their position open.
Also, the exchange does not benefit from the funding rate, as the traders pay themselves depending on what side of the funding rate they are. The exchange only benefits from trading fees, theoretically.
For example if we doing futures, the date set expired is 1 month, is it can't closed until expired?
I have not tried future contract before, I have have only preferred to go for perpetual contract that do not have the expiration date which is the difference.
But in accordance to what I have read about future contract, you can close the position opened at anytime before the expiration date, if not closed by you, it would close by itself after the expiration date.
Ok. Thanks for the information.
That is seem very risky.
Very different if we compare with spot trading,
we only get unrealized loss if don't sell the coin and the coin still there.
Way riskier than even futures or perpetual swaps if you use the same leverage as that of leveraged tokens. It is the reason Binance has delisted leverage token twice now. A lot of people lost money.