In perpetual contract trading, transaction fees and funding rates are an indispensable part of trading costs. They may seem insignificant, but over time, they can become a crucial factor that undermines account profitability.

Detailed Explanation of Transaction Fees

Transaction fees are the costs that need to be paid for each trade, divided into two types:

1. Maker Fee: This fee is relatively low, usually around 0.02%.

2. Taker Fee: This is when you transact directly at the market price, and the fee is higher, approximately 0.05%.

For example, if your principal is 600 USDT and you use a 100x leverage, then the position size will expand to 60,000 USDT.

• If you choose Taker: Fee = 60,000 USDT × 0.05% = 30 USDT

• If you choose Maker: Fee = 60,000 USDT × 0.02% = 12 USDT

This means that the total transaction fees (opening + closing) could range from 24 USDT to 60 USDT. For users who trade frequently, the accumulated cost of fees can be quite substantial.

What is the Funding Rate?

The funding rate is a dynamic cost in perpetual contract trading, used to balance the power between long and short positions in the market.

Calculation formula:

Funding rate expense = Position amount × Funding rate

When the funding rate is positive, users holding long positions need to pay fees to users holding short positions; when the funding rate is negative, users holding short positions need to pay fees to users holding long positions.

Funding rate settlements usually occur at 00:00, 08:00, and 16:00 daily. If you hold a position at these times, the corresponding fee settlement will be triggered.

How to Reduce Trading Costs?

Reducing the expenses of transaction fees and funding rates is an important step in optimizing trading profitability. Here are some practical suggestions:

1. Try to choose Maker operations to lower transaction fees.

2. Be mindful of changes in funding rates, reasonably arrange your holding time, and avoid high-rate periods.

3. Look for fee rebate programs to minimize trading expenses.

Do not underestimate these optimizations in details, as in the long run, they can significantly enhance your profitability. If you are still unsure how to optimize these costs, feel free to reach out to me, and I will help you learn more methods to reduce trading fees! #加密市场反弹