I saw a question on another Q&A platform where a user with high leverage conducted a 125x trade and after closing the position, they made a 4% profit, but their assets still showed a loss of 8.5%?
Upon closer inspection, it turned out that all the losses were due to fees. Why is that? How can we earn more?
According to the platform's fee calculation formula, "position value × fee rate = fee", we can deduce some information. If you are using 100x leverage and purely limit trading, your position must at least profit by more than 4% to make any gains. Similarly, for pure market trading, your position needs to profit by more than 10% for you to earn.
The fee issue is unavoidable for contract users; we must understand how it is calculated in order to make informed profits because trading cannot rely on luck.
So, how can we earn more?
(For users who trade long-term, the fee expenses might have already exceeded the principal, right?)
At this point, the advantage of fee rebates becomes apparent. Through rebates, you can recover a portion of the fees, which is like saving money.
More importantly, fee rebates are applicable not only 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 more trading returns through rebates.
Therefore, it is essential to opt for rebates; the fees you are entitled to should be reclaimed, otherwise, all the fees go to the market.
By opting for fee rebates, the fees are returned to your own account, saving you at least a few hundred in fees each month, which is quite easy.