For those of you trading high-frequency contracts, you may not even be aware of the existence of transaction fees or may look down upon these fees, not realizing that the fees from frequent trading could even exceed your principal. This can be a significant cost.

Let's take an example based on Binance's trading fees:

Example: Principal of 1000u, limit order trading fee rate of 0.02%, market order trading fee rate of 0.05%.

With 10x leverage, that’s 10000u,

Limit order: 10000U × 0.02% = 2U fee

Market order: 10000U × 0.05% = 5u fee

Many people may not realize the existence of transaction fees, or they notice that they seem to have made a profit, but why are they still losing money?

Each exchange has different fee rates, and the fees charged are also different; different trading modes have different fee rates.

If you use 100x leverage and only limit orders, your position must profit by at least 4% to make a gain. Similarly, with only market orders, your position must profit by over 10% for you to earn.

Let me give you an analogy:

If you use 100x leverage to buy 1 Bitcoin worth 90000u with 900u, the current position value is 90000u.

The fee generated from placing a limit order would be 90000 × 0.02% = 18. This requires you to manually set the opening and closing points for limit orders.

The fee generated from market orders would be 90000 × 0.05% = 45. This is automatically executed by the system (the system will enter at the current best price).

The fee for one trade (buy and sell) is 36 or 90.

(These are just examples, do not imitate!!!)

At this point, the advantages of fee rebates become apparent. Through rebates, you can recover a part of the fees, which is equivalent to saving money indirectly.

More importantly, fee rebates apply not only to spot trading but also to contract trading. This means that whether you are a spot trading expert or a contract trading guru, you can enjoy more trading returns through rebates.

So, you must enable rebates; the fees that should be returned to you must be reclaimed. If you don’t enable them, all fees go to the market.

Once you enable the rebate, the fees are returned to your account, saving you several hundred fees at least over a month, which is quite easy.