💴 You opened a position and immediately went negative. Why?
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Entry fee.
Let's calculate. Deposit $1,000, leverage 10x, position $10,000.
Taker fee on entry: $5. Fee on exit: another $5. Spread you crossed with a market order: $1. Slippage on execution: $2. Funding if you hold the position for a day: $3.
Total $16 for one trade. That's 1.6% of the deposit burned before the market made a single move.
✍️ Now multiply. Twenty trades a month, which is modest for a beginner, equals $320. A third of the deposit went to the exchange.
Using a limit order instead of a market order eliminates two expense items immediately.
Maker fees are lower than taker fees, and on some exchanges, they are negative, meaning you get paid. Spread and slippage disappear at the same time because you set the price.
A referral discount on fees reduces the rate by another 10-20%. It always works and is applied once.
🤝 Check funding before entering, not after. If the rate is 0.05% and you plan to hold the position for three days, you will pay 4.5% of the position volume. Sometimes it's cheaper not to enter.
And most importantly. Every extra trade costs you money even if it ends at zero. Ten precise entries a month are more profitable than forty average ones.
—
Entry fee.
Let's calculate. Deposit $1,000, leverage 10x, position $10,000.
Taker fee on entry: $5. Fee on exit: another $5. Spread you crossed with a market order: $1. Slippage on execution: $2. Funding if you hold the position for a day: $3.
Total $16 for one trade. That's 1.6% of the deposit burned before the market made a single move.
✍️ Now multiply. Twenty trades a month, which is modest for a beginner, equals $320. A third of the deposit went to the exchange.
Using a limit order instead of a market order eliminates two expense items immediately.
Maker fees are lower than taker fees, and on some exchanges, they are negative, meaning you get paid. Spread and slippage disappear at the same time because you set the price.
A referral discount on fees reduces the rate by another 10-20%. It always works and is applied once.
🤝 Check funding before entering, not after. If the rate is 0.05% and you plan to hold the position for three days, you will pay 4.5% of the position volume. Sometimes it's cheaper not to enter.
And most importantly. Every extra trade costs you money even if it ends at zero. Ten precise entries a month are more profitable than forty average ones.