For those trading high-frequency contracts, you may not even be aware of the existence of fees, or may overlook these small fees.
Little do you know, the fees from frequent trading could even surpass your principal; this is a significant cost.
Open the Binance app -- Funds -- Contracts -- Today's Profit and Loss -- Funding Costs and Trading Fees.
You can see your fees for the past year. 🤷
According to the platform's fee calculation formula, "Position Value × Fee Rate = Fee," you can gather one piece of information: if you open a 100x leverage position, with pure limit orders, your position needs to profit at least over 4% for you to earn. Similarly, with pure market orders, your position needs to profit over 10% for you to earn.
Here's an example:
Using 900 U to purchase 1 Bitcoin worth 90,000 U with 100x leverage, the current position value is 90,000 U.
The fee generated from a limit order buy is 90,000 × 0.02% = 18. This requires manually setting the entry and exit points for the limit order.
The fee generated from a market order buy is 90,000 × 0.05% = 45. This is an automatic market entry (the system will enter at the current best price).
The fee for one trade (buy and sell) is 36 or 90.
(The above is just an example; do not imitate!!!)
For brothers trading high-frequency contracts and large positions,
your fee expenditure exceeding your principal may only take a month.
Therefore, you must open a commission rebate; the fees that should be refunded must be reclaimed. If you don't open for rebates, all fees go to the market.
Different invitation codes, refund ratios, refund methods, and refund times vary. A 5% difference in rebate can lead to a difference of hundreds or thousands of U in large trading volumes.
🔺Fee rebates are mutually beneficial, but they are not meant to exploit uninformed users. It is essential to crack down on those deceptive KOLs.
For veteran contract users, it is crucial to get a rebate; otherwise, the losses can be significant. If needed, assistant Xiaojianhua can provide help.