'Understanding IEEE Floating Point Numbers from crypto exchange
I read as much as I could within my ability to grasp concepts before posting. This is a photo from a crpto currency exchange website (https://www.btse.com/en/futures/ETHPFC). I asked the administrator in the telegram group why is there a difference between the interest rate shown and the number shown once hovering the mouse over the rate (it also returns the same lengthy decimal in scientific notation via API call).
His response was: "Note the website shows 0.00101%. Which is identical to 0.0000101 (the other differences are there because of IEEE floating point numbers)".
Can someone (kindly) explain to me what I am missing?
Here are their calculation methods and example: (https://support.btse.com/en/support/solutions/articles/43000460020)
Funding Fees Calculation
Funding Fee = Notional Value x Funding Rate
Funding Rates will be updated every minute. When settling the fee, the system will use every minutes' average results in the past 1 hour to calculate the fee.
Minimum funding rate for long positions: 0.001%
Minimum funding rate for short positions: -0.001%
Notional Value = Mark Price x Position Size x Contract Multiplier
Funding Rate = [Max (0, Impact Bid-Perp Index) - Max (0, Perp Index-Impact Ask)] / Perp Index / 24
When the funding rate is positive, Longs pay Shorts; when the funding rate is negative, Shorts pay Longs
Impact Bid Price: The average buy price of the first 10,000 highest bid orders in the Order Book
Impact Ask Price: The average sell price of the first 10,000 lowest ask orders in the Order Book
For example:
BTC Perpetual
Index Price: 1230 USD
Mark Price: 1250 USD
Impact Bid: 1299 USD
Impact Ask: 1300 USD
Position Size: 1000 contracts
Contract Multiplier: 0.001
Notional Value = 1250 x 1000 x 0.001 = 1250
Funding Rate = [Max (0 , 1299-1230) - Max (0, 1230-1300)] / 1230 / 24 = (69-0) / 1230 / 24 = 0.002337
Funding Fee = 1250 * 0.002337 = 2.92125 USD (Long pays to Short)
Sources
This article follows the attribution requirements of Stack Overflow and is licensed under CC BY-SA 3.0.
Source: Stack Overflow
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