Derivatives Trading
Traders can be classified as market takers or market makers. For every executed order, trading fees are incurred.
- Market takers are traders who seek liquidity and take liquidity off the book immediately. They’re charged a taker fee.
- Market makers, who provide liquidity and increase the market depth of the order book, are charged a maker fee.
- The trading fee is deducted from the account balance, and it doesn’t affect the initial margin of the order.
- Traders can view the incurred trading fees from the trading history.
Inverse Perpetual Contract
|
Taker Fee Rate |
Maker Fee Rate |
|
0.06% |
0.01% |
Formula for Inverse Contract: Trading Fee = Order Value × Trading Fee Rate
Order Value = Quantity / Executed Price
Example:
Trader A buys 10,000 BTCUSD contracts using a Market order.
Trader B sells 10,000 BTCUSD contracts using a Limit order.
Assuming that the execution price is $8,000:
Taker fee for Trader A = 10,000/8,000 × 0.06% = 0.00075 BTC
Maker fee for Trader B = 10,000/8,000 × 0.01% = 0.000125 BTC
Hence, upon execution, Trader A will pay a 0.00075 BTC Taker's fee and Trader B will pay a 0.000125 BTC Maker’s fee.
USDT Perpetual Contract
|
Taker Fee Rate |
Maker Fee Rate |
|
0.06% |
0.01% |
Formula for USDT Contract: Trading Fee = Order Value × Trading Fee Rate
Order Value = Quantity × Executed Price
Example:
Trader A buys 10 BTC contracts using a Market order.
Trader B sells 10 BTC contracts using a Limit order.
Assuming that the execution price is 8,000 USDT:
Taker Fee for Trader A = 10 × 8000 × 0.06% = 48 USDT
Maker fee for Trader B = 10 × 8000 × 0.01% = 8 USDT
Hence, upon execution, Trader A will pay a 48 USDT Taker's fee and Trader B will pay a 8 USDT Maker’s fee.
USDC Perpetual Contract
USDC Perpetual Contract
|
Taker Fee Rate |
Maker Fee Rate |
|
0.06% |
0.01% |
Formula for USDC Contract: Trading Fee = Order Value × Trading Fee Rate
Order value = Order Quantity × Executed Price
USDC Perpetual Contract Example:
Trader A buys a 10 BTC contract using a market order.
Trader B sells a 10 BTC contract using a limit order.
If the execution price is $50,000:
Taker's Fee for Trader A = 10 × 50,000 × 0.06% = 300 USDC
Maker fee for Trader B = 10 × 50,000 × 0.01% = 50USDC
Upon execution, Trader A pays a 300 USDC Taker's Fee, and Trader B will pay a 50 USDC Maker’s fee.