$ACT How much do you know about commission rebates?
Transaction fees are the largest cost during trading!
Here’s an example, taking Binance trading fees as a reference:
Example: Principal 1000u
10x leverage means 10000u,
10000U*0.05%=5u transaction fee
For 1 contract:
Opening fee 5u, closing fee 5u, total 10u.
Summary: For 10x leverage, assuming 5 contracts a day,
Daily transaction fee is: 10*5=50u=350 yuan
Monthly transaction fee is: 350*30=10500 yuan
Yearly transaction fee is: 10500*12=126000 yuan
With 20x leverage, that’s 20000u, 20000U*0.05%=10u transaction fee
For 1 contract:
Opening fee 10u, closing fee 10u, total 20u.
Summary: For 20x leverage, assuming 5 contracts a day,
Daily transaction fee is: 20*5=100u=700 yuan
Monthly transaction fee is: 700*30=21000 yuan
Yearly transaction fee is: 21000*12=252000 yuan
This is just calculated based on 10x and 20x leverage; if you aggressively use 100x leverage, the fees can be astonishing!
Based on the above calculations, yearly transaction fees could be several tens of thousands of U, what you save is what you earn. If you mishandle and get liquidated, the fee refund can give us a chance to make a comeback!
Did you understand? Do you get it? Want to contact me for a rebate? I’ll quietly tell you.