Dear excellent contract traders, after experiencing high-frequency trading, have you found that you seem to have not earned much money? Is this a distortion of the market or the decline of the platform?
Actually, it's neither. The main reason is that the fees are too high, significantly offsetting your profits.
Transaction fees are the biggest cost in the trading process!
Let's give an example, taking Binance's trading fees as a reference:
Example: Principal 1000 USDT, limit order trading fee rate 0.02%, market order trading fee rate 0.05%. 10x leverage means 10,000 USDT,
Limit order: 10,000 USDT × 0.02% = 2 USDT fee
Market order: 10,000 USDT × 0.05% = 5 USDT fee
For one contract:
Limit order opening fee 2 USDT, closing fee 2 USDT, total 4 USDT
Market order opening fee 5 USDT, closing fee 5 USDT, total 10 USDT.
Summary: Calculating with 10x leverage for 3 contract orders a day
Daily fee is: 4 × 3 = 12 USDT = 84 CNY — 10 × 3 = 30 USDT = 210 CNY, user daily fee is between 84 CNY and 210 CNY.
This is just calculated with 10x leverage; if someone aggressively uses 100x leverage, the fees are even more astonishing!
So how can one earn more? (For long-term users, the fee expenditure might have already exceeded the principal, right?)
At this time, the advantage of fee rebates becomes apparent. Through rebates, you can get back a portion of the fees, which is equivalent to saving money.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means whether you are a spot trading expert or a contract trading master, you can enjoy more trading returns through rebates.
Therefore, it is essential to open fee rebates; you should reclaim the fees that belong to you. If you don't open them, all fees go to the market.
Once fee rebates are activated, the fees are refunded to your account, saving you at least several hundred in fees each month, which is quite easy.
I saw a question on another Q&A platform, a user with high leverage conducted a 125x trade, after closing the position, the profit was 4%, but the asset was still down 8.5%?
Upon looking closer, all the losses were due to fees, why is that? How can one make more money?
Taking Binance, a leading platform, as an example, the following are Binance's fee rates:
The spot single-side fee rate is 0.1%, and the fee required for one transaction is 0.2%.
The contract single-side fee rate is 0.02% for limit orders, 0.05% for market orders, and the fee required for one transaction is 0.04%-0.1%.
For one contract: The limit order opening fee is 2 USDT, the closing fee is 2 USDT, totaling 4 USDT. The market order opening fee is 5 USDT, the closing fee is 5 USDT, totaling 10 USDT. Summary: For 10x leverage, calculating based on 3 contract trades a day:
The daily fee is: 4×3=12 USDT=84 RMB — 10×3=30 USDT=210 RMB, the user's daily fee is between 84 RMB and 210 RMB. The monthly fee is: 84×30=2520 RMB — 210×30=6300 RMB. The yearly fee is: 2520×12=30240 RMB — 6300×12=75600 RMB.
Many users feel that their trading volume is not large, but trading is long-term, and the longer the time, the more expenses accumulate, so the concept of fee rebates is particularly important.
Doesn't that sound a bit high? Don't worry, at this point, the advantage of fee rebates becomes apparent. Through rebates, you can get a portion of your fees back, which is equivalent to saving money indirectly.
Rebates refer to returning a certain percentage of your fees back to yourself. We all know that due to the high-frequency trading nature of cryptocurrencies, there will be a lot of fee expenditures during the trading process. By using an invitation code when registering, you can significantly reduce fees. For example, if you paid a total of 10 USDT in fees, as long as you used Binance's invitation code when registering, you can get back 2 USDT. Rebates are returned once a week, completed automatically, and displayed in the fund flow.
You only need to fill in an invitation code in the referrer section when registering, and you can save a lot on fees in future trades.
Different invitation codes have different return ratios, return methods, and return times. A 5% difference in rebates can lead to a difference of several hundred to thousands of USDT with large trading volumes.
For old contract users, it is essential to set up a rebate; otherwise, the losses can be significant. If needed, the assistant Xiaojiao can provide help.
If you are trading high-frequency contracts, you may not yet know about the existence of transaction fees, or you may overlook these fees, not realizing that frequent trading fees can even exceed your initial capital, which is a significant cost.
Open the Binance APP -- Funds -- Contracts -- Today's Profit and Loss -- Funding Costs and Transaction Fees. You can see your transaction fees for the past year. 🤷
The spot single-side transaction fee rate is 0.1%, and the fee for each transaction is 0.2%.
The contract single-side transaction fee rate is 0.02% for limit orders and 0.05% for market orders, with the fee for each transaction ranging from 0.04% to 0.1%.
According to the platform's fee calculation formula, "Position Value × Fee Rate = Fee," you can derive some information: if you are using 100x leverage with pure limit orders, your position must yield at least 4% profit to make a gain. Similarly, with pure market orders, your position needs to profit at least 10% for you to earn.
If you are using 100x leverage with pure limit orders, your position must yield at least 4% profit to make a gain. Similarly, with pure market orders, your position needs to profit at least 10% for you to earn. For example: If you use 100x leverage to buy 1 Bitcoin worth 90,000u with 900u, the position value at this time is 90,000u. The fee generated from limit buy orders is 90,000 × 0.02% = 18, which requires manual setting of entry and exit points for limit orders. The fee generated from market buy orders is 90,000 × 0.05% = 45, automatically executed by the system (the system will enter at the best current price). The fee for one transaction (buy and sell) is either 36 or 90. (The above is just an example; do not imitate!!!)
Compared to spot trading, the transaction fees for contract trading are indeed lower, but the risks are much higher.
At this time, the advantages of fee rebates become apparent. Through rebates, you can recover part of the fees, effectively saving money.
More importantly, fee rebates are not only applicable to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract trading pro, you can enjoy greater trading returns through rebates.
So be sure to activate the rebate; you should reclaim the transaction fees. If you don’t activate it, the fees will all go to the market.
By activating the rebate, the transaction fees will be returned to your account, saving you at least a few hundred in fees each month, which is quite easy.
Many people may not know about the existence of transaction fees, or wonder why they still incur losses despite making profits?
Each exchange has different fee rates, and the transaction fees charged vary as well. The trading model also affects the fee rates.
Taking Binance, a leading platform, as an example, below are Binance's fee rates:
The spot single-side fee rate is 0.1%, and the transaction fee required for one trade is 0.2%.
The contract single-side fee rate is 0.02% for limit orders and 0.05% for market orders, with the transaction fee required for one trade ranging from 0.04% to 0.1%.
For one contract trade: Limit order opening fee is 2U, closing fee is 2U, totaling 4U. Market order opening fee is 5U, closing fee is 5U, totaling 10U. In summary: Assuming 10x leverage and 3 contract trades per day,
Daily transaction fees are: 4×3=12U=84 CNY——10×3=30U=210 CNY, so the user's daily transaction fee ranges between 84 CNY and 210 CNY. Monthly transaction fees are: 84×30=2520 CNY——210×30=6300 CNY. Annual transaction fees are: 2520×12=30240 CNY——6300×12=75600 CNY.
The first benefit: Players who have traded contracts know that every time you open and close a position, the platform will deduct a certain fee from you. For example, if the platform deducted 100U in fees from you today for contract trading, and you have not activated the fee rebate, then this 100U fee is entirely taken by the platform. However, if you have activated the fee rebate, the platform will only take most of the 100U, and a small portion will be returned to you, which can be considered free money. This is just the fee rebate for one day.
The second benefit: If you have been in the crypto space for a long time, have you calculated how much cost you can save in a year? For example, if your annual fees amount to 10,000U, and you activate the fee rebate, you could save several thousand U in a year. This money could take care of your car's fuel, maintenance, and insurance without worry—it's a win-win situation. Many people have been in the crypto space for 5-8 years; can they upgrade their cars? You won't know until you calculate, and it might surprise you.
The third benefit: This point is the most important; you can also share this with others to let more people know. Saving is a virtue. Let's not let all the crypto newcomers drown in difficulties; let's spread positive energy starting from ourselves.
Many new users find that when registering for B安, they need to fill in a referral code, which is best to do because it can reduce transaction fees.
Since you discovered this, let me explain in detail why it is necessary to fill in the invitation code~
The B安 referrer is an internal link credential provided when inviting friends to register for B安, to prove that this user was invited by an old user.
It is also possible to register directly without an invitation code, but it should be noted that accounts registered with an invitation code have certain benefits (fee discounts).
If you want your friends to register with Binance's invitation code, new users can save on transaction fees.
Whether you are trading contracts or spot trading in the crypto world, it is recommended to use Binance's new user registration channel~
Because the transaction fees of small exchanges can reach up to 80%, but an exchange that can't guarantee even one fund will eventually eat up your principal.
As the world's number one exchange, Binance is well-established in all aspects and is very safe~
By using the invitation code, you can receive multiple benefits.
Receive a rebate.
Rebate refers to returning a certain percentage of your transaction fees back to you. We all know that due to the high-frequency trading nature of cryptocurrencies, there will be a lot of transaction fee expenditures during the trading process. By registering with an invitation code, you can greatly reduce transaction fees. For example, if you paid 10 USDT in transaction fees, just by using B安's invitation code during registration, you can get back 2 USDT. Rebates are returned once a week, automatically, and are displayed in the capital flow.
You only need to fill in an invitation code in the referrer section during registration, and later on, using the exchange can save you a lot of transaction fees.
Different invitation codes have different return ratios, return methods, and return times. A 5% difference in rebates can result in hundreds or thousands of USDT in a large trading volume.
For old contract users, it is essential to get a rebate, otherwise, the losses can be significant. If needed, the assistant Xiaojiao can provide help.
Dear excellent contract traders, after experiencing high-frequency trading, have you noticed that you seem to have not made much money? Is this a distortion of the market or a decline of the platform?
In fact, it is neither; the main issue is the high transaction fees, which have deducted a large portion of your profits.
The transaction fee incurred for the purchase is 40,000 × 0.1% = 40u.
The transaction fee for one trade (buy and sell) is 80u.
Contract trading fee: Position value × Fee rate
Trader Xiao Yu feels that the spot trading fees are too high and is preparing to change investment strategies (it's usually not recommended to jump right into contracts), so they switched to contract trading to give it a try.
Using 400u with 100x leverage to purchase 1 Bitcoin worth 40,000u, the position value at this time is 40,000u.
The transaction fee for placing a buy limit order is 40,000 × 0.02% = 8, and it needs to be manually set for opening and closing order points.
The transaction fee for a market order buy is 40,000 × 0.05% = 20, and the system automatically enters the market for market orders (the system will enter at the current best price).
The transaction fee for one trade (buy and sell) is between 16-40. (Above is just an example, do not imitate!!!)
So how can you earn more? (For long-term traders, the transaction fees may have already exceeded the principal, right?)
At this point, the advantage of fee rebates becomes apparent. Through rebates, you can get back a portion of the fees, which is equivalent to saving money.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract trading master, you can enjoy more trading returns through rebates.
So be sure to activate fee rebates; you should get back the fees you can. If you don’t activate them, all the fees go to the market.
By activating fee rebates, the fees are returned to your own account, saving you at least several hundred in fees each month, which is quite easy.
Hello everyone, I am your cryptocurrency assistant. Today I will explain the fee rules of Binance exchange and tell you how cost-effective and money-saving it is to open a fee rebate account!
Binance's fees are divided into spot trading and contract trading. Let's first talk about spot trading, where the fee is generally one thousandth, which means that for a transaction of 10,000 U, you need to pay 10 U in fees. Now looking at contract trading, the fees are slightly lower, but if you use leverage, such as ten times leverage, the fees can significantly increase. For example, with a position of 1,000 U, the fees under ten times leverage can reach 10 U (both opening and closing positions incur fees).
Compared to spot trading, the fees for contract trading are indeed lower, but the risks are much higher.
At this point, the advantages of fee rebates become apparent. Through rebates, you can get back a portion of the fees, essentially saving money.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract trading master, you can enjoy more trading returns through rebates.
So be sure to open a rebate account; the fees you should get back must be reclaimed. If you don’t open a rebate account, all the fees go to the market.
By opening a rebate account, the fee refunds go back to your own account, saving you at least a few hundred in fees each month, which is quite easy.
I saw a question on another Q&A platform where a user with high leverage conducted a 125x trade, closed their position with a 4% profit, but their assets were still down 8.5%?
Upon closer inspection, all the losses were due to fees. Why is that? How can one earn more?
Assuming a principal of 1000u with 50x leverage, the position value would be 50000u, and the total fees for opening and closing the position would be between 20-50u.
This is just one trade's fees. If you trade three times a day, that amounts to 90 times a month, accumulating fees of 1800-4500u.
Many users think their trading volume is not large, but trading is long-term; the longer the time, the more expenses you incur, which makes fee rebates particularly important.
Does that sound a bit high? Don't worry, this is where the advantages of fee rebates come into play. Through rebates, you can recover a portion of the fees, essentially saving money.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means whether you are a spot trading expert or a contract trading pro, you can enjoy more trading returns through rebates.
It's simple to enjoy this 'benefit': just register for a Binance account through my exclusive link or referral code, and you can get the highest rebate rate. This not only makes each trade more cost-effective but also provides you with an additional source of income.
Getting fee rebates is nothing to be ashamed of; saving money is the real deal! Let's invest wisely and save money effortlessly together!
What are the necessary expenses for contract trading? How can these expenses be reduced? . Users who frequently engage in contract trading know about the transaction fee expenses. Because the contract transaction fees accumulate over time, they take up a large portion of the funds, and losing them for nothing is certainly painful.
Let me give you an example: If 900 USDT is used to buy 1 Bitcoin worth 90,000 USDT with 100x leverage, the value of the position at that time is 90,000 USDT. The transaction fee for placing a buy order is 90,000 × 0.02% = 18, which requires manual setting of the entry and exit points as a limit order. The transaction fee for a market order is 90,000 × 0.05% = 45, where the system automatically enters at the market price (the system will enter at the current best price). The transaction fee for one trade (buying and selling) is either 36 or 90. (This is just an example; do not imitate!!!)
This is just the transaction fee for one trade. If you trade three times a day, that’s 90 times in a month, accumulating transaction fees of 3,240 - 8,640 USDT.
Many users feel that their trading volume is not large; however, trading is long-term, and the longer the time, the more expenses accumulate, making rebate programs particularly important.
How can these expenses be reduced?
The simplest and most cost-effective way is to get a rebate program, register, and fill in the rebate invitation code. Different invitation codes have different rebate ratios, rebate durations, and rebate methods.
Holding BNB allows you to enjoy a 10% discount on transaction fees for USDT-denominated contracts, and you can also increase your VIP level to reduce the transaction fee rate.
So it's essential to open a rebate program; you should get back the transaction fees that you are entitled to. If you don’t open it, all the transaction fees go to the market.
With the rebate program, transaction fees are returned to your own account, saving you at least several thousand USDT in fees each month.
For experienced contract users, it is necessary to have a rebate program; otherwise, the losses can be significant. If needed, the Xiaojiao Assistant can provide help.
Many people may not know the existence of handling fees, or find that they have made money, but why do they still lose money?
Each exchange has different handling fee rates, and the handling fees charged are also different. Different trading modes have different handling fee rates.
Take Binance, the leading platform, as an example. The following is Binance's handling fee rate.
The spot unilateral handling fee rate is 0.1%, and the handling fee required for one transaction is 0.2%.
The contract unilateral handling fee rate is 0.02% for placing orders and 0.05% for taking orders. The handling fee required for one transaction is 0.04%-0.1%.
According to the platform handling fee calculation formula, "position value × handling fee rate = handling fee", you can get a message. If you open 100 times leverage and pure limit price trading, your position must be profitable to at least 4% before you can make money. Similarly, for pure market price trading, your position must be profitable to more than 10% before you can make money.
If you open 100 times leverage and pure limit price trading, your position must be profitable to at least 4% before you can make money. Similarly, for pure market price trading, your position profit must be more than 10% to be profitable. Let me give you an example: 900u uses 100 times leverage to buy 1 Bitcoin worth 90000u. The value of the position at this time is 90000u. The handling fee generated by the pending order is 90000×0.02%=18. The opening and closing points need to be set manually for the pending order. The handling fee generated by the taker order is 90000×0.05%=45. The system automatically enters the market for the taker order (the system will enter at the current best price). The handling fee for a transaction (buy and sell) is 36 or 90. (The above is just an example, do not imitate!!!)
This is why many people clearly make a profit but show a loss in the end.
In fact, the transaction fee in the currency circle can be refunded. This is a policy issued by the exchange to give users a better experience and reduce the transaction fee of traders.
You only need to fill in an invitation code at the referrer when registering, and you can save a lot of handling fees when using transactions later.
Different invitation codes have different refund ratios, refund methods, and refund times. A 5% difference in the refund can make a difference of hundreds or thousands of U in a large transaction volume.
For old contract users, it is necessary to get a refund, otherwise the loss will be huge. If you need it, Xiao Jiucaihua Assistant can provide help.
I saw a question on another Q&A platform: a user with high leverage, trading at 125x, closed their position with a 4% profit, but their assets are still down 8.5%?
Many brothers who trade contracts still do not realize the horror of trading fees, and even overlook these small fees, not knowing that frequent trading fees can amount to a significant cost. Let me explain in detail how contract fees are calculated.
According to the platform's fee calculation formula, "Position Value × Fee Rate = Fee", we can deduce that if you open a 100x leverage position with pure limit orders, your position must profit at least 4% or more to make a gain. Similarly, with pure market orders, your position must profit at least 10% or more to realize a profit. Let me give you an example: If you use 100x leverage to buy a Bitcoin worth 90,000u with 900u, the current position value is 90,000u. The fee generated from limit buy orders is 90,000 × 0.02% = 18, which requires manual setting of the opening and closing prices. The fee generated from market buy orders is 90,000 × 0.05% = 45, which is for system automatic entry (the system will enter at the current best price). The fee for a single trade (buy and sell) is either 36 or 90. (The above is just an example, do not imitate!!!)
For high-frequency contract traders with large positions, your fee expenses could exceed your principal in just a month.
The fee issue is unavoidable for contract users. We must understand how it is calculated to be aware of how to make money; relying on luck is not an option in trading. So how can we earn more money?
Therefore, it is essential to open a rebate; you should reclaim the fees that are due to you. If you don't open for fee rebates, all fees will go to the market.
Different invitation codes result in different rebate ratios, methods, and time. A 5% difference in rebates can lead to a difference of hundreds or thousands of U in large trading volumes.
If you have opened a rebate for fee returns to your own account, even if you lose money on one or two trades, as long as the loss is less than your monthly rebate, you will still end up making a profit.
For veteran contract users, it is essential to set up a rebate; otherwise, the losses can be substantial. If needed, the assistant Xiaojiao can provide help.
Many brothers who trade contracts still don't know the horror of trading fees, and some even look down on this small amount of fees, not realizing that frequent trading fees can add up to a significant amount. Let me explain in detail how contract transaction fees are calculated:
Opening 1 large position, based on the current 90,000u: The order placement fee is 0.02% 90,000 x 0.02% = 18u (order placement)
Many brothers prefer to close positions with one click, which incurs a taker fee. The taker fee is 0.05% 90,000 x 0.05% = 45u (taker exit)
This transaction, entering and exiting, incurs a total of 73u For each transaction, the fee deducted is 73u. If you make 5 transactions a day, that’s 365u in fees. In a month of 30 days, that totals 10,950u. With rebates, you can save at least a few thousand u in a month!
For brothers engaged in high-frequency contract trading and large positions, your fee expenses can exceed your principal in just one month.
So, it is essential to open rebates; the fees you should reclaim must be reclaimed. If not, all fees go to the market.
With rebates, the transaction fees are returned to your own account, saving you at least tens of thousands of u in fees in a month.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract trading master, you can enjoy more trading rewards through rebates.
So, it is essential to open rebates; the fees you should reclaim must be reclaimed. If not, all fees go to the market.
With rebates, the transaction fees are returned to your own account, saving you at least hundreds in fees effortlessly.
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. #合约挑战
Many people may not know about the existence of transaction fees, or they may wonder why they incur losses even when they seem to have made a profit?
Each exchange has different fee rates, and the fees charged vary as well. The trading model also affects the fee rates.
Taking the leading platform Binance as an example, below are the fee rates for Binance.
The spot single-side fee rate is 0.1%, and the fee required for a single transaction is 0.2%.
The contract single-side fee rate is 0.02% for limit orders and 0.05% for market orders, with the fee required for a single transaction ranging from 0.04% to 0.1%.
Many people may have a question: is there a difference in fees for different cryptocurrencies?
The fee rates for all cryptocurrencies are the same; the difference in fees is calculated based on the position held. Trader Xiao Yu buys $10,000 worth of Bitcoin, requiring a fee of $10; selling also requires a fee of $10.
Xiao Yu has $500 in capital, using 100x leverage (this is just an example, please do not imitate), with a position value of $50,000. The fee required to open the position is $10-$25.
Closing the position also requires $10-$25, so the fee required for a single transaction is $20-$50, and when trading at market price, the fee accounts for 10% of the capital.
This is the reason why many people seem to be profitable but end up showing losses.
In fact, in the cryptocurrency world, transaction fees can be refunded. This is a policy from exchanges to provide users with a better experience and reduce traders' fees.
You only need to fill in an invitation code at the time of registration in the referrer section, and later, using the exchange can save a significant amount on fees. #合约爆仓
Hello everyone, I am your little assistant in the cryptocurrency world. Today I will explain the fee rules of Binance exchange and tell you why opening an account with fee rebates is so cost-effective and money-saving!
Binance's fees are divided into spot trading and futures trading. Let's first talk about spot trading, where the fee is generally one-tenth of a percent. This means that for a transaction of 10,000 U, you need to pay 10 U in fees. Now, looking at futures trading, the fees are slightly lower, but if you use leverage, like ten times leverage, the fees can increase significantly. For example, with a position of 10,000 U, the fees under ten times leverage can reach 100 U.
Doesn't that sound a bit high? Don't worry, this is where the advantage of fee rebates becomes apparent. Through rebates, you can get back a portion of the fees, which is equivalent to saving money indirectly.
More importantly, fee rebates apply not only to spot trading but also to futures trading. This means that whether you are a spot trading expert or a futures trading guru, you can enjoy more trading rewards through rebates.
Want to enjoy this "benefit"? It's simple; just register for a Binance account through my exclusive link or referral code, and you can get the highest rebate rate. This not only makes each trade more cost-effective but also adds an extra income for yourself.
Fee rebates are not embarrassing; saving money is the hard truth! Let's invest wisely and save money easily together!
I saw a question on another Q&A platform. A user with high leverage made a 125x transaction and earned 4% after closing the position. But the assets still lost 8.5%?
I saw that all the losses were due to handling fees. Why is this? How can I make more money? According to the platform fee calculation formula, "position value × handling fee rate = handling fee", we can get a message. If you open a 100x leverage and trade at a pure limit price, your position must be profitable at least 4% to make money. Similarly, for pure market price trading, your position must be profitable to more than 10% to make money. Let me give you an example: 900u uses 100 times leverage to buy 1 Bitcoin worth 90000u. The value of the position at this time is 90000u. The handling fee generated by the pending order is 90000×0.02%=18. The opening and closing points need to be set manually for the pending order. The handling fee generated by the taker order is 90000×0.05%=45. The system automatically enters the market for the taker order (the system will enter at the current best price). The handling fee for a transaction (buy and sell) is 36 or 90. (The above is just an example, do not imitate!!!)
For contract users, the handling fee issue is unavoidable. We must understand its calculation method to make money in our hearts. The most unreliable thing in trading is luck. So how can we make more money?
At this time, the advantage of handling fee reversal is revealed. Through reversal, you can get back part of the handling fee, which is equivalent to saving money in disguise.
If you open a reverse hold, the handling fee will be returned to your own account. Even if you lose money on one or two orders, if the loss is less than your monthly commission, you will still make money in the end.
For old contract users, you must get a reverse hold, otherwise the loss will be huge. If you need it, Xiao Jiucaihua Assistant can provide help.
Many brothers who trade contracts still do not know the horror of transaction fees, and even look down on this little fee. Little do they know that frequent trading fees can also add up to a significant amount. Let me explain in detail how contract transaction fees are calculated:
Spot trading fee: Position value × Fee rate Trader Xiao Yu purchased 1 Bitcoin worth 40,000u in spot trading. The fee incurred for the purchase is 40,000 × 0.1% = 40u. The fee for one transaction (buy and sell) is 80u.
Contract trading fee: Position value × Fee rate Trader Xiao Yu thinks the spot trading fee is too high and is preparing to change investment strategies (it is usually not recommended to jump straight into contracts), so he tries it out in contracts. Using 400u with 100x leverage to buy 1 Bitcoin worth 40,000u, the current position value is 40,000u. The fee incurred for a limit order buy is 40,000 × 0.02% = 8. A limit order requires manually setting the entry and exit points. The fee incurred for a market order buy is 40,000 × 0.05% = 20. A market order is when the system automatically enters (the system will enter at the current best price). The fee for one transaction (buy and sell) is 16-40. (The above is just an example, do not imitate!!!) Compared to spot trading, the fees charged for contract trading are indeed lower, but the risks are much higher.
At this point, the advantage of fee rebates becomes apparent. Through rebates, you can get back a portion of the fees, which is equivalent to saving money.
More importantly, fee rebates apply not only to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract master, you can enjoy more trading returns through rebates.
Therefore, it is essential to enable rebates. You should reclaim the fees that can be reclaimed; otherwise, they all go to the market.
Once the rebate is enabled, the fees are returned to your own account, saving you at least a few hundred in fees each month, and it's quite easy.
I saw a question on another Q&A platform. A user with high leverage made a 125x transaction and earned 4% after closing the position. But the assets still lost 8.5%?
I saw that all the losses were due to handling fees. Why is this? How can I make more money?
According to the platform's handling fee calculation formula, "position value × handling fee rate = handling fee", we can get a message. If you open a 100x leverage and trade at a pure limit price, your position must be profitable at least 4% to make money. Similarly, for pure market price trading, your position must be profitable to more than 10% to make money. Assuming a principal of 1000u, using 50 times leverage, the position value is 50000u, and the opening and closing of a position together requires a handling fee of 20-50u This is just the handling fee for one order. If you trade three times a day, it will be 90 times a month, and the accumulated handling fees will be 1800-4500u. Many users feel that their trading volume is not large, but trading is long-term, and the longer the time, the more expenses, so rebates are particularly important. In addition to the handling fee rebate, Wei'an can also use BNB for deduction, and some trading pairs also have discounts, which can be superimposed on each other, which is much better than other exchanges. The handling fee issue is unavoidable for contract users. We must understand its calculation method to make money in our hearts. The most unreliable thing in trading is luck. So you must open the anti-holding, and the handling fee should be taken back. If you don't open the handling fee, it will all belong to the market. The handling fee will be returned to your own account after the anti-holding is opened, which will save you at least tens of thousands of u in handling fees per month. For old contract users, it is necessary to get a reverse hold, otherwise the loss will be huge. If necessary, Xiao Jiucaihua Assistant can provide help. #合约爆仓
For those of you trading high-frequency contracts, you might not even be aware of the existence of fees, or you may think little of these fees. Little do you know, the fees from frequent trading may even exceed your principal, which can be a significant cost.
Open the Binance app -- Funds -- Contracts -- Today's Profit and Loss -- Funding Fees and Trading Fees. You can see your fees for the past year. 🤷
For example: If your position is to open a large contract, calculated at 90,000, the fee for an ordinary user per order is generally, 90,000 × 0.02% × 2 = 36U — 90,000 × 0.05% × 2 = 90U.
This is just for one order; if you place two orders a day, the monthly fees would be: 36 × 2 × 30 = 2160U — 90 × 2 × 30 = 5400U.
Over the course of a year, the fees would amount to: 2160 × 12 = 25920U — 5400 × 12 = 64800U.
For those engaged in high-frequency contract trading with large positions, your fee expenses may exceed your principal in just one month.
So it’s essential to open a rebate; you should reclaim the fees that should be returned to you. If you don’t open a fee rebate, all fees go to the market.
Different referral codes have different rebate ratios, methods of rebate, and times of rebate. A 5% difference in rebate can result in a difference of several hundred to several thousand U in large trading volumes.
🔺 Fee rebates are mutually beneficial, but they are not meant to deceive users who do not understand. We must strictly crack down on those deceptive KOLs.
For old contract users, it is essential to set up a rebate; otherwise, the losses can be significant. If you need help, the assistant Xiaojiao can provide assistance.