How much handling fee is incurred for a contract with 10,000U in the crypto space?
This is the handling fee generated from a loss of 10,000U
976U + 0.75 BNB = 1470U
The handling fee generated from being liquidated after just 5 days of trading
The handling fee is calculated based on the position value
Assuming the total position value is 10,000U, there are many ways to compose this position
10,000 margin with 1x leverage = position value 10,000U
1,000U margin with 10x leverage = position value 10,000U
100U margin with 100x leverage = position value 10,000U
Handling fee calculation: limit order 10,000 × 0.02% × 2 = 4U. Market price 10,000 × 0.05% = 10U
Opening and closing orders will incur handling fees, which means that even if you are only placing limit orders, a single order will incur at least 8U in handling fees
There are many high-frequency traders; for example, if one opens 10 orders in a day, each order's position value is around 10,000U
So the handling fee for one day is 40-100U
In a month, that amounts to 1,200U-3,000U (difference between limit orders and market orders)
For larger positions and higher frequency, the handling fees can approach your own capital in just over a month
Many high-frequency contract traders rely on rebate programs to gain profits
With accounts that have rebate handling fee returns, you can easily save several hundred U in handling fees in a month.