Newbies are still asking how to make money, while experienced traders are thinking about how to save money.
The position shows a profit, so why does it still lose money after closing? Many people may have this question.
The reason for this situation is that both opening and closing positions require transaction fees.
No matter which exchange you trade on, you need to understand the exchange's fee rates. Different trading modes and order types will have different fee rates.
You can see that Binance's U-margin contract fees are 0.02% for limit orders and 0.05% for market orders. The fee for one trade is calculated as 0.02% for limit orders and 0.1% for market orders.
All rates are calculated based on the position size, and the chart shows a position size of 24487u.
If all trades are at market price, the generated fee would be 24487×0.1%=24.487u.
Ps. The leverage multiple is just a tool to magnify the principal. The larger the position, the higher the generated transaction fees.
The fee for a single order is about 25u. If you only open 3 orders a day, that adds up to over 2200u in a month. If there is a fee rebate, you can get back over 700u on top of that 2200u. Isn’t that great~
Everyone can check how much their transaction fees are.
Of course, in addition to the rebate on transaction fees, holding BNB can also be used for fee deductions, but it needs to be transferred to the contract account for deductions.
