At the Order Confirmation Window and Order Zone, the ‘Order Cost’ is the total margin needed to open a particular position. It is calculated using the Initial Margin plus a 2-way taker fee. The actual fee charged/received depends on the order type.

Order Cost = Initial margin + 2-way taker fee (fee to open + fee to close)

Fee to open = (Quantity of contracts/Order Price*) x taker fee

Fee to close = Quantity of contracts/(Bankruptcy Price derived from Order Price*) x taker fee

Bankruptcy Price for Long position = (Average Entry Price x Leverage) / (Leverage+1)

Example:

A trader places a buy limit order of 10,000 BTCUSD contracts at 6,400 USD, using 25x leverage.

**Initial Margin** = (10,000/6,400) x 4%

= 0.0625 BTC

**Fee to open** = (10,000/6,400) x 0.075%

= 0.00117188 BTC

The **Bankruptcy Price** for this position

= 6,400 x 25/(25+1)

= 160,000/26

≈ 6,154 USD

**Fee to close** = (10,000/6,154 USD) x 0.075%

= 0.00121872 BTC

For more details on the calculation of Bankruptcy Price, please click here.

So, the Order Cost of this position:

= 0.0625 BTC (Initial margin) + 0.00117188 BTC (fee to open) + 0.00121872 BTC (fee to close)

= 0.06489060 BTC

The trader will see the ‘Order Cost’ at the Order Zone and the Order Confirmation Window.

*Note: Order Price is used to calculate the Order Cost needed for Limit order while the Order Cost needed for Market order is calculated by the Market Price derived from the current market depth.

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