How are contract trading fees calculated? Don’t worry—the class study representative is here to explain:
A Maker order is placed on the order book and waits to be filled, adding liquidity to the market. A Taker order is filled immediately against an existing order on the order book.
For short-term trading with frequent opening and closing of positions, fees can add up to more than you might expect and make up a significant portion of your final returns.
The first page of my trading notes says: Understand it before you act.
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