At 20x leverage, what percentage of your margin do fees eat up for one round trip (opening and closing)?
Definition: Market orders are always charged taker fees. A limit order is also charged taker fees if it immediately matches an existing order when placed.
The reasoning: Fees are calculated based on notional value. The higher the leverage, the larger the fees for opening and closing become as a percentage of your margin. For example, assuming a 0.05% fee for both opening and closing, the total comes to about 1% of your margin at 10x leverage.
Coin mentioned in the discussion: $BTC , current price 83436.9, 24h -0.3%.
Before opening a position, check the liquidation price. If it’s too close to the current price, reduce your position size.
Definition: Market orders are always charged taker fees. A limit order is also charged taker fees if it immediately matches an existing order when placed.
The reasoning: Fees are calculated based on notional value. The higher the leverage, the larger the fees for opening and closing become as a percentage of your margin. For example, assuming a 0.05% fee for both opening and closing, the total comes to about 1% of your margin at 10x leverage.
Coin mentioned in the discussion: $BTC , current price 83436.9, 24h -0.3%.
Before opening a position, check the liquidation price. If it’s too close to the current price, reduce your position size.