Some users who trade contracts may find that despite making profits for several days, it seems they haven't earned much money. Let's take a look at the reasons behind this with spot trading!!!
Open the Binance APP -- Bottom funds -- Top select contracts -- Today's realized profit and loss -- Funding fees and trading fees -- Show trading fees.
This way you can see your fees and funding costs across different cryptocurrencies over the past year.
Why start with the issue of fees? Let's calculate it based on an ordinary user's situation.
Limit order fee is 0.02%, market order fee is 0.05%, which is the fee rate for ordinary users.
Suppose: with 100x leverage, pure limit order trading, the position profit must reach over 4% to count as your profit. Similarly, with pure market order trading, the position profit must reach over 10% to count as profit.
Let me show you an example: Using 1000 USDT of principal with 100x leverage to buy one BTC, the position value is 100,000 USDT.
(Fee calculation formula: Position value × Fee rate = Fee)
Pure limit order trading (buying and selling once): 100,000 USDT × 0.02% × 2 = 40 USDT
Pure market order trading (buying and selling once): 100,000 USDT × 0.05% × 2 = 100 USDT
(The above is just an example, do not imitate)
Therefore, a single trade for the user results in a fee between 40 USDT and 100 USDT. The difference between limit and market trading is more than double, hence for users who trade more with market orders, the fees are definitely a significant expense.
At this point, a rebate is required. A rebate is the proportionate return of the actual trading fees incurred by the user. If there are no fees, all goes to the market.
Different invitation codes have different rebate ratios, rebate methods, and rebate times. A 5% difference in rebates can amount to several hundred or even thousands of USDT with large trading volumes.
🔺 Fee rebates are mutually beneficial, but they are not meant to exploit uninformed users. We must strictly crack down on those who deceive others, including harmful KOLs.