Binance Options Trading Fees

2022-09-08 09:46

Options fees have two components: the Transaction Fee and the Exercise Fee.

Transaction Fee

A transaction fee will be charged after opening or closing a position. The transaction fee for each transaction is calculated based on the underlying asset’s Spot Index price at the time of the order completion (capped at 10% of the option’s value).

Transaction fee rate: 0.03%

Formula:

Transaction Fee = Minimum (Transaction Fee Rate * Index Price * Contract Unit, 10% * Option Traded Price) * Option Traded Size

Example:

User A buys the following Options:

Type: ETHUSDT Call Option
Underlying: ETH
Strike Price: 2,000 USDT
Quantity: 3 contracts
Expiration Date: April 30, 2022
Premium: 1,000 USDT

User A places a Limit Buy Order for 3 ETHUSDT Options contracts with a 1,000 USDT premium. The order was executed when the ETHUSDT Spot Index price hits 2,000 USDT.

In this case, Transaction Fee = Minimum (0.03% * 2,000, 10% * 1,000) * 3 = 1.8 USDT

Exercise Fee

Exercise fees are charged whenever the Options is exercised. The exercise fee for each transaction is calculated based on the settlement price at the time of the order completion (capped at 10% of the option’s value).

Exercise fee rate: 0.015%

Formula:

Exercise Fee = Minimum [Exercise Fee Rate * Settlement Price * Contract Unit, 10% * Option Value] * Position Size

Example:

Let’s revisit User A’s case:

Type: ETHUSDT Call Option
Underlying: ETH
Strike Price: 2,000 USDT
Quantity: 3 contracts
Expiration Date: April 30, 2022
Settlement Price: 2,200 USDT
Premium: 2,000 USDT

In this case, Exercise Fee = Minimum [0.015% * 2,200, 10% * (2,200 − 2,000)] * 3 = 0.99 USDT