When the leverage multiple of the position is high, how much can the transaction fee account for the principal?

Based on the formula and values in the figure below, please perform a calculation.

Assuming this user trades at market price, opening and closing the position in one go.

Transaction fee expenditure = 47063.44 × 0.05% × 2 = 47.063U.

Because this user has high leverage, the transaction fee accounts for 12.5% of the principal.

In the figure below, the user's profit quickly reaches 1000%, please do not be envious, you can see that the opening price and the liquidation price differ by only 24U. This is the risk they have taken.

It can be seen that the higher the leverage multiple, the greater the position value, and the proportion of transaction fee expenditure to the principal is higher.

As long as there is trading, transaction fees will be incurred. The short-term high-frequency fees for contracts can be considerable, but fortunately, they can be reduced or waived.

1. Rebate, when registering an account, fill in the invitation code. You can enjoy fee reductions and rebates based on the actual transaction fees incurred by the user, proportionally refunded. (Transaction Fee)

2. BNB Discount, transfer enough BNB to the corresponding account to pay for transaction fees, and you can enjoy a 10% discount on contract fees and a 25% discount on spot fees. (Fee Rate)

3. VIP Level, upgrading the platform's VIP level can gradually reduce the fee rate. (Fee Rate) #手续费 #手续费返佣