Are transaction fees for crypto contract trading very high?

Many long-time users in the crypto contract space have experienced this firsthand. Initially, they feel that the transaction fees are not much and each order's proportion is small. However, transaction fees are often the most easily overlooked cost during trading. Over a long time, they realize that the transaction fee expenditure really adds up. The expenditure on fees has already caught up with the principal.

Assuming your principal is $1,000:

If using 10x leverage, your trading amount will be magnified to $10,000. If calculated at a unilateral limit price of 0.2%, the transaction fee for each trade will be $2.

Completing a contract trade, including opening and closing positions, the total transaction fee is $4.

Summary: If using 10x leverage and conducting 3 contract trades daily,

The daily transaction fee is: 3 times * $4 = $12;

The monthly transaction fee is: $12 * 30 days = $360;

The annual transaction fee is: $360 * 12 months = $4,320.

If using 20x leverage, the trading amount will be magnified to $20,000, and the transaction fee for each time using a unilateral market price of 0.15% will be $10.

Completing a contract trade, including opening and closing positions, the total transaction fee is $20.

Summary: If using 20x leverage and conducting 3 contract trades daily,

The daily transaction fee is: 3 times * $20 = $60;

The monthly transaction fee is: $100 * 30 days = $1,800;

The annual transaction fee is: $1,800 * 12 months = $21,600.

This is just based on the minimum fee expenditure at 10x leverage and the maximum fee expenditure at 20x leverage. If using higher leverage, such as 100x, the fees will be even more astonishing.

From these calculations, it can be seen that over a year, transaction fees can amount to tens of thousands of dollars. Therefore, the fees saved are the profits earned. If there is a fee rebate, even in the case of liquidation due to improper operations, the refunded fees can provide you with capital to start over. Thus, planning and managing transaction costs reasonably is crucial for long-term profitability.