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 execution type.
Order Cost = Initial Margin + Two-Way Taker Fee
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 = Entry Price x (1 - Initial Margin Rate)
Trader place a long entry of 1BTC at USD8000 with 50x leverage.
Initial Margin = (1BTC*8000) / 50
Fee to open = 1BTC x 8000 x 0.075%
Bankruptcy Price = 8000 x (1 – 0.02)
Fee to close = 1BTC x 7840 x 0.075%
For more details about the calculation of bankruptcy price, please click here.
Order Cost = 160USDT + 6USDT + 5.88USDT
= 171.88 USDT
Note: The following criteria must be met in order to place an order successfully.
1) The Order cost ( Initial Margin + Two-Way Taker Fee ) required has to be smaller than or equal to the available balance
2) Under cross margin mode, in the event that there is opened position, (1.2 x maintenance margin (MM) of open position + unrealized loss of position) has to be smaller than or equal to the available balance.