How much do you know about transaction fee rebates?
Transaction fees are the largest cost we incur during trading. Here is an example using the perpetual contract fees of a certain exchange:
Example: Principal 1000u
10x leverage, which is 10000u
10000U * 0.05% = 5u transaction fee
For 1 contract:
Opening fee 5u, closing fee 5u, totaling 10u.
Summary: Assuming 5 contracts are traded per day with 10x leverage,
Daily transaction fee is:
10 * 5 = 50u = 350 yuan
Monthly transaction fee is:
350 * 30 = 10500 yuan
Annual transaction fee is: 10500 * 12 = 126000 yuan
With 20x leverage, it is 20000u
20000U * 0.05% = 10u transaction fee
For 1 contract:
Opening fee 10u, closing fee 10u, totaling 20u.
Summary: Assuming 5 contracts are traded per day with 20x leverage,
Daily transaction fee is:
20 * 5 = 100u = 700 yuan
Monthly transaction fee is:
700 * 30 = 21000 yuan
Annual transaction fee is: 21000 * 12 = 252000 yuan
This is just based on 10x and 20x leverage. If you aggressively use 100x leverage, the fees can be astonishing!
According to the calculations above, the annual transaction fees could amount to several tens of thousands of U, which means what you save is what you earn. If operations are mishandled and you face liquidation, the rebate on transaction fees can give us a chance to make a comeback!
Do you understand? Got it? If you don't understand, feel free to ask me.