Three types of people want you to open a contract the most:
1. Exchanges (eat your transaction fees)
The majority of transaction fees on mainstream exchanges are contributed by futures trading. The proportion of spot transaction fees is negligible compared to futures trading.
How to calculate the contract fee?
U-based transaction fee (ordinary user, not VIP) = transaction quantity x transaction price x transaction fee rate (taker: 0.05%, maker: 0.02%)
Note: Taker orders are actively traded at the current price, while Maker orders are passively traded at a specified price.
Q：Why is there a discrepancy between the transaction fees for taking orders and placing orders?
Someone asked this question in a private message a few days ago.
A: Pending orders provide more liquidity to the market and increase trading depth. Taker orders are orders that actively execute orders, which take away liquidity and reduce trading depth. From the platform's perspective, placing orders will of course be encouraged, so less transaction fees will be provided for placing orders.
The contract leverage of top exchanges can be opened up to 100 times (the leverage of fake exchanges can be opened up to 1,000 times), such as OKX, a world-leading exchange, which supports a maximum contract leverage of 100 times. The handling fee is calculated based on the total value of the position. In other words, the higher your leverage, the more handling fees you will have to pay in the end.
For example, the current price of BTC is 50,000 USD per coin, and you have 50,000 USD in your exchange contract account. You choose to go long BTC 50 times (mainly for the calculation of handling fees).
Opening Fee:
Transaction quantity x transaction price x handling fee rate (taker order: 0.05%, maker order: 0.02%)
Taker: 50 BTC ✖️50,000 ✖️50,000 = 1,250 USD
Order: 50 BTC ✖️50,000 ✖️20,000 = 500 USD
The moment you open a position, you contribute USD 500-1250 in handling fees to the platform, which is approximately RMB 3500-9000.
This is only the charge for opening a position, and the platform will charge again when the position is closed.
Closing Fee:
If you choose to close your position at 60,000 USD.
Fee for order taking: 50 BTC ✖️60,000✖️50,000＝1500 USD
Fee order: 50 BTC ✖️60,000 ✖️20,000 = 600 USD
Finally, your total handling fee for this position is:
Taker: Opening fee of 1250 + Closing fee of 1500 = 2750 USD
Pending order: 500 commission for opening position + 600 commission for closing position = 1100 USD
With this calculation, I think you can probably understand why the activity display about contracts frequently occupies the main page of the exchange.
2. KOL (also eats your transaction fee)
Note: Strictly speaking, Kol will receive part of the transaction fee returned to you by the exchange. The premise is that you are a registered user invited by the Kol. If you register by yourself, all transaction fees will be collected by the platform. Neither you nor the Kol will receive any refund.
This is also called return in the market.
The actual ratio is distributed according to the rules of different platforms.
3. Banker (eats your principal)
The dealer, also affectionately called the dog dealer by the market people, is the main force in the market. Usually, they are the project issuers or large holders. They use a complete set of strategies to manipulate the market. Some dealers will even point-to-point blast a player with a heavy contract position without any scruples.
Of course, for small positions, you can just leave it to fate.
Let’s get back to the question of whether you can make money by playing contracts?
Of course there is a chance of making money.
It’s just that the probability of loss is infinite.
I personally think that the reason why the cryptocurrency industry spreads so rapidly and has attracted the attention of ordinary people is that it is inextricably linked to contract trading, which is the biggest representative of the myth of wealth creation in the entire cryptocurrency industry. For example, on May 19, a certain post-00s generation earned tens of millions of yuan in profits through contracts in a few days with a principal of one thousand yuan, which is still widely circulated.
Don’t envy those who make money through contracts, they all make it by going all-in. Contract trading is the most risky speculative operation in the crypto world. If you are not careful, you will fall into the abyss.