Trackers
A complete guide on trackers below:
- Trackers are derivative instruments that closely follow the price of crypto assets, similar to how spot trading works in the market
- This allows you to benefit from price movement of the crypto asset with the ability to sell the tracker at any point
- The smallest unit of BTC Tracker is 1 Lot (= 0.00001 BTC) & the minimum amount to buy in one order is 100 Lots (= 0.001 BTC), while there is no restriction on sale quantity of the tracker.
Trading Fees
- Trading fees are charged when the tracker asset is bought and sold both.
- It is calculated as a percentage of Tracker Asset value being bought or sold with both maker and taker charges being 0.05%
- There is also a holding cost applied in exchange for the benefits they offer, which is calculated using the current holding rate multiplied by the size of the tracker position that is held at 5:30 PM IST everyday
- Holding rate is updated everyday and is visible on the Delta Exchange platform
- Holding rate is not applicable on first day of transaction at 5:30 PM
- Holding charge is applicable everyday (except 1st day), until you sell your entire position. Buying more or partially selling Trackers does not reset the holding cost period - the first-day exemption applies only when you initially purchase the tracker.
- Holding cost is deducted from available wallet balance each day. If your wallet does not have enough to cover the cost, part of your tracker asset will be sold to cover the cost.
Thus, total fee associated with trackers:
Buying fee + Selling fee + Holding fee (paid daily at 5:30 PM IST)
Tracker Asset vs Normal Spot Trading
- Spot trading has a higher fee associated with buying & selling the asset as compared to trackers. However, spot trading does not have a holding fee. This makes trackers a good option for traders looking to hold their position in the short to medium term.
- Since Trackers are derivative products, they are not subject to the specific taxes that apply to Virtual Digital Assets (VDAs).
- However, you can withdraw a crypto asset to your own wallet or move it to a different exchange. Trackers can only be traded on Delta Exchange.
Try out the tracker yourself here: Tracker
Read the complete guide to trackers with examples here: Guide to Trackers