Why are commissions consuming you so much? ✅🤫LET ME explain 🎯
I will explain it to you simply 🤔
Every time you close an open trade, you create a closing order, which for you to better understand, someone has to buy your closing order.
✅If you trade high-cap coins, there are orders everywhere, so if you decide to close at any moment, it is more than certain that someone will buy your sell order and the commission will be low, practically just the broker's commission regarding the leverage used (a x75 trade with an amount of about 1200usdt will take about 0.35 in commission on average).
❌If you trade low-cap coins, and decide to close your operation:
🎯Example 1. You close in X coin at 150, but the nearest closing order is at 140... The broker will charge you the commission based on your leverage and in addition to that, they will charge you as if you had closed at 140... you are losing 10 pips bro.
🎯There is another special scenario here on Binance, which is when you close a trade and Binance recognizes it as an "emergency" close (you open a trade and the coin has a lot of volatility, so you close it almost automatically; it can also happen that your trade has been open for a long time and suddenly it drops sharply and you close at 150... Boom, they hit you with an additional commission for "supposed emergency close").
Moral... Trade coins with a solid base if you don’t want to be eaten up ✅✅