Are you still foolishly engaging in high-frequency short-term trading? It won't be long before your transaction fees exceed your principal.
Many of my friends who trade contracts complain to me about the high fees. There are several important points worth discussing here, filled with useful information.
First, you need to know that the amount of transaction fees is directly related to the size of your position. It's not just about how much money you invested initially, but rather how much you currently hold.
As your position increases, the fees naturally rise as well.
Secondly, the difference in fees between market orders and limit orders can be significant. A market order is like directly buying goods from someone else, which costs more, usually around 0.05%. On the other hand, a limit order is like setting up a stall and waiting for someone to buy, which has a much lower fee, only 0.02%.
This is why exchanges hope everyone places more limit orders; it benefits everyone.
Let's do a calculation: assume you have a principal of 100 USDT and you trade with 50x leverage, then your position value is 5000. Based on market price, the fee for this trade is 5-2 USDT; after twenty trades, the fees will exceed your principal in less than a month.
Moreover, the amount of fees also depends on whether you can enjoy rebates from the exchange. Some people manage to spend less because they not only place limit orders but also earn back a portion of the transaction fees from each trade.
This way, the costs naturally decrease. So, when trading contracts, pay attention to these details; they can help you save a lot.
So how can you check how much you have spent on fees? You can follow the instructions in the image to see how much you have wasted on fees in the past year.
You can leave a message in the comments for rebate inquiries.