Do you sometimes feel like you've made some money, but a large chunk is 'sucked away' by transaction fees? Don't worry, here I'll explain why transaction fees are high and how to save money! Let’s talk in simple terms:
Why are transaction fees so high?
Because your position size is large.
Transaction fees don't just look at your principal, they focus on your position market value. Just like a buffet, they don't care how much money you brought, only how many plates you eat. When the position size is large, the transaction fees naturally 'rise with the tide.'Because you are 'taking orders.'
There are two ways to place orders on the exchange:Limit orders (Maker) and market orders (Taker)..Limit order: It's like setting up a stall to sell things, waiting for people to come buy, with lower fees (0.02%).
Market order: This is like going directly into a store and paying for something ready-made, using the most expensive ticket (0.05%).
Taking orders is like directly taking what others have displayed, reducing trading depth, and the exchange naturally expresses dissatisfaction by 'charging a bit more' for this behavior. If you want to save money in the future, try to place more limit orders!
Exchanges charge commissions.
Some people have much lower rates than you, why? Because they not only use limit orders but also receive 'rebates'!Rebates are like receiving a discount coupon from the boss after finishing your meal at a buffet. Every time there are transaction fees generated, a proportion can be refunded to your account. Don't underestimate this little refund; over the long term, it can save you a significant amount!
Getting rebates is simple: register using a designated invitation link or code, and then trade to receive long-term rebates. This has nothing to do with how much money you have or whether you make a profit; as long as there are trades, there will be transaction fees, and where there are fees, there can be rebates. Over time, not getting rebates is a missed opportunity!
However, before receiving rebates, you need to clarify the rebate ratio, cycle, and timing, and clearly understand the terms to avoid confusion.
Calculating money is very simple.
Transaction fee: Position size × Fee rate = Transaction fee.
Rebate amount: Generated transaction fees × Rebate ratio = The final amount refunded to your account.
Whether you're trading spot or contracts, these rebates can be used. Saving a bit on the back-and-forth transaction fees is also a form of 'invisible profit.'
To summarize:
With large positions, the rate naturally increases.
Market order fees are higher than limit orders; don't always be the one getting taken advantage of.
Rebates can help you 'recover' benefits from transaction fees.
Over the long term, these small tips can help you save a lot of unnecessary expenses.
Saving money is earning money, you understand? Think about these points before your next trade, and you might avoid a lot of headaches on your trading journey!
