The following is a detailed explanation of how Binance fee calculation works and an analysis of the profit and loss from going long/short BTC with a principal of 10,000 USDT. Due to the high volatility of BTC prices and the fact that Binance's fees vary depending on account levels, transaction types (e.g., spot, contract), etc., I will explain based on general situations and assume some reasonable parameters. If you have specific time points, leverage multiples, or account levels (e.g., VIP levels), you can provide more details for more precise calculations. I. Binance Fee Calculation Methods: Binance fees vary based on transaction types (spot trading, perpetual contracts, delivery contracts, etc.) and the account's VIP level (based on 30-day trading volume and BNB holdings). Below is the fee structure for the main types of transactions: 1. Spot Trading Fees
Standard Rate:
Maker (Limit Order): 0.1%
Taker (Market Order): 0.1%
If using BNB to pay fees, you can enjoy a 25% discount, i.e., Maker/Taker fee rates are 0.075%.
VIP Level Discounts: Based on the 30-day trading volume and BNB holdings, the higher the VIP level, the lower the fees. For example:
VIP 0 (Regular User, trading volume <1 million USDT): Maker 0.1%, Taker 0.1%
VIP 1 (Trading volume ≥ 1 million USDT and BNB holdings ≥ 25): Maker 0.09%, Taker 0.1%
Higher VIP level rates can go as low as Maker 0.02%, Taker 0.04%.
Calculation Formula:
Fee = Transaction Amount × Fee Rate
For example, buying BTC worth 10,000 USDT, Taker fee rate is 0.1%, the fee is 10,000 × 0.001 = 10 USDT.
2. Perpetual Contract Fees
Standard Rate:
Maker: 0.02%
Taker: 0.04%
Using BNB for payment gives a 10% discount (e.g., Taker rate drops to 0.036%).
VIP Level: Users with high trading volumes enjoy lower rates. For example:
VIP 0: Maker 0.02%, Taker 0.04%
VIP 9: Maker -0.005% (rebate), Taker 0.017%
Funding Rate: The perpetual contract funding rate is settled every 8 hours to anchor the contract price to the spot price. The funding rate fluctuates dynamically based on market balance between longs and shorts, and can be positive (longs pay shorts) or negative (shorts pay longs), typically between ±0.01% to ±0.03%.
Calculation Formula:
Fee = Contract Notional Value × Fee Rate
Contract Notional Value = Position Size × Contract Price
Funding Fee = Position Notional Value × Funding Rate
3. Other Fees
Deposit/Withdrawal Fees: Binance charges no fees for fiat deposits and most cryptocurrency deposits, but withdrawals may incur network fees (e.g., BTC withdrawal is about 0.0005 BTC).
Leverage Borrowing Interest: If using leveraged trading (such as Binance leveraged accounts), borrowing interest must be paid, charged by the hour, with rates varying by cryptocurrency and market conditions (e.g., BTC daily interest rate is about 0.01%-0.03%).
Reference Source: Information regarding Binance fees can be found on the Binance official website or (Binance Fee Reduction Guide), (How much are Binance contract fees?).
II. Assumed Scenario: 10,000 USDT principal going long/short BTC
To calculate profit and loss, we need to assume the following parameters (since no specific leverage multiple and price is provided):
BTC Price: Assuming the current BTC price is 100,000 USDT (referencing the market price on May 20, 2025, actual price should be based on real-time data).
Leverage Multiple: Assuming using 10x leverage (Binance perpetual contracts support 1-125x leverage, 10x is a common choice).
Transaction Type: Perpetual Contract (as going long/short typically refers to contract trading).
Fee Rate: Assuming a regular user (VIP 0), Taker fee rate is 0.04%, Maker fee rate is 0.02%, without using BNB discount.
Funding Rate: Assuming it is 0.01% (every 8 hours, typical value).
Holding Time: Assuming holding for 24 hours (involves 3 funding rate settlements).
Price Change: Assuming BTC price increases or decreases by 10% (i.e., rises to 110,000 USDT or falls to 90,000 USDT).
1. Calculate Position Size
Principal: 10,000 USDT
Leverage: 10x
Position Notional Value = Principal × Leverage = 10,000 × 10 = 100,000 USDT
Position Size = Position Notional Value ÷ BTC Price = 100,000 ÷ 100,000 = 1 BTC
2. Fee Calculation
Opening Fee (assuming Taker, 0.04%):
Opening Fee = 100,000 × 0.04% = 40 USDT
Closing Fee (assuming Taker, 0.04%):
Closing Fee = 100,000 × 0.04% = 40 USDT
Funding Rate (0.01% every 8 hours, 3 settlements in 24 hours):
Single Funding Fee = 100,000 × 0.01% = 10 USDT
Total Funding Fee = 10 × 3 = 30 USDTTotal Trading Cost:
Total Cost = Opening Fee + Closing Fee + Funding Fee = 40 + 40 + 30 = 110 USDT
3. Going Long BTC (Long, expecting price to rise)
Scenario 1: Price increases by 10% (BTC rises to 110,000 USDT)
Profit = Position Size × Price Change = 1 × (110,000 - 100,000) = 10,000 USDT
Net Profit = Profit - Total Trading Cost = 10,000 - 110 = 9,890 USDT
Return = Net Profit ÷ Principal = 9,890 ÷ 10,000 = 98.9%
Scenario 2: Price decreases by 10% (BTC falls to 90,000 USDT)
Loss = Position Size × Price Change = 1 × (100,000 - 90,000) = 10,000 USDT
Net Loss = Loss + Total Trading Cost = 10,000 + 110 = 10,110 USDT
Since the principal is only 10,000 USDT, a loss exceeding the principal may lead to liquidation (depending on the platform's forced liquidation mechanism).
4. Going Short BTC (Short, expecting price to fall)
Scenario 1: Price decreases by 10% (BTC falls to 90,000 USDT)
Profit = Position Size × Price Change = 1 × (100,000 - 90,000) = 10,000 USDT
Net Profit = Profit - Total Trading Cost = 10,000 - 110 = 9,890 USDT
Return = Net Profit ÷ Principal = 9,890 ÷ 10,000 = 98.9%
Scenario 2: Price increases by 10% (BTC rises to 110,000 USDT)
Loss = Position Size × Price Change = 1 × (110,000 - 100,000) = 10,000 USDT
Net Loss = Loss + Total Trading Cost = 10,000 + 110 = 10,110 USDT
Similarly, a loss exceeding the principal may trigger liquidation.
5. Liquidation Risk
Binance perpetual contracts have a forced liquidation mechanism. When the account margin rate (= account balance ÷ position notional value) falls below the maintenance margin rate (usually around 0.5%-1%), the system will force liquidation.
For example, with 10x leverage, a price reversal of about 9%-10% (i.e., 9,000-10,000 USDT) may lead to liquidation, depending on the maintenance margin rate and account balance.
III. Summary
Fees: With a principal of 10,000 USDT and 10x leverage opening a 1 BTC position, the total cost of the Taker transaction is about 110 USDT (opening 40 + closing 40 + funding fee 30).
Going Long BTC:
Price increases by 10%: Net Profit 9,890 USDT (Return 98.9%).
Price decreases by 10%: Net Loss 10,110 USDT (possible liquidation).
Going Short BTC:
Price decreases by 10%: Net Profit 9,890 USDT (Return 98.9%).
Price increases by 10%: Net Loss 10,110 USDT (possible liquidation).
Risk Warning: Contract trading carries extremely high risks, as leverage amplifies both gains and losses. A price reversal may lead to total loss of principal or even liquidation. It is advisable to operate cautiously and set profit and loss limits.
IV. Recommendations
View real-time rates: Log in to your Binance account to check your VIP level and actual fee rates (Binance official website > User Center > Fees).
Using BNB for discounts: Holding BNB to pay fees can lower costs.
Monitor funding rates: Funding rates fluctuate with the market, and long-term positions may increase costs.
Paper Trading: Binance offers a paper trading feature, and it is recommended to test strategies with virtual funds first.
Real-time Price: BTC prices are highly volatile; it is advisable to refer to real-time market data (e.g., Binance, CoinGecko).
For more precise calculations, please provide the following information:
Specific Leverage Multiple
Current BTC Price
Holding Time
