The trading modes in cryptocurrency exchanges are roughly divided into spot trading and contract trading. What are the corresponding transaction fees for the two?
Spot trading: Spot trading is just like buying things normally, where you pay for the goods. If I spend 6000 USDT to buy a Bitcoin, then I actually own this Bitcoin, and I can transfer it to my own wallet or give it to others.
The advantage of spot trading is that the coins you buy belong to you, and the number of coins in your hands will not change regardless of price fluctuations. The disadvantage is that you can only make a profit if the coin price rises. If the coin price falls, you can only sell to stop loss or hold on to the coin.
Key point: Spot trading can only be bought long, making a profit by buying low and selling high
Taking the head platform Kuan An as an example, the spot trading fee rate is 0.1%, and the fee rate required for buying and selling is 0.2%
Little Fish purchases 10,000 USDT worth of Bitcoin, and the fees required for buying and selling are 20 USDT
In spot trading, there is also a leveraged trading that emerges, with the same trading fee rate, but an interest fee will be added.
Spot trading volume
Based on a spot trading volume of 44 million, the fee is 44,000 USDT
Contract trading: Contracts are an upgrade of leverage, more user-friendly than leverage, no need to borrow coins or return coins, and the operation is simple. You can operate as long as you have coins or USDT in your position.
Contracts are divided into two categories by time:
One type is perpetual contracts, which means you can hold them for a long time as long as you do not get liquidated.
Another type is time-limited, divided into: this week, next week, and quarterly, which means that once the time is up, it will automatically close the position.
Contracts and leverage can be traded in two types: coin-to-coin and USDT trading pairs. The former settles profits using coins, which we refer to as coin-based, where profits are based on the increase in the number of coins, while the USDT trading pair settles using USDT.
The contract trading fee rate is 0.02% (limit order), 0.05% (market order), and the fee rate required for opening and closing positions is 0.04% (limit order), 0.1% (market order)
Little Fish uses 100 USDT with 100 times leverage to open a position worth 10,000 USDT in Bitcoin, and the fee required for opening and closing market orders is 10 USDT
In contract trading, in addition to the opening and closing fees, there is also a funding fee generated, but it is limited to perpetual contracts.
Due to the differences in trading modes, the trading fee rates will also vary, and the differences between the two can be intuitively seen from the rates; the actual trading fees of contracts are lower.
There is a misconception here that many people see the low fee rate of contract trading and frequently open and close positions, resulting in very high fees. The fees in contracts are calculated based on the position value after leverage is applied.
Contract trading fee expenditure
