Understanding the fee structure for coin-margined futures is crucial for any trader looking to manage costs and maximize potential returns. These fees directly impact your realized profit and loss, making accurate calculation a fundamental aspect of your trading strategy. This guide breaks down the different types of fees, their calculation methods, and provides clear examples to ensure you can compute your trading costs with confidence.
What Are Coin-Margined Futures Fees?
Coin-margined futures are a type of derivative contract where the collateral and profit/loss are denominated in the underlying cryptocurrency, such as BTC or EOS. When you trade these contracts, the platform charges fees for executing your trades and for handling the settlement of positions that reach expiration. These fees are not paid separately; instead, they are deducted from your position and recorded in your realized P&L.
The primary fee types are trading fees (incurred on opening and closing a position) and delivery fees (incurred if a position is settled by the system upon expiry). All fees are collected in the contract's underlying asset.
How Trading Fees Are Calculated
Trading fees are applied whenever an order is filled, whether it's an opening or closing trade. The fee rate depends on whether your order provided liquidity (maker) or took liquidity (taker) from the order book. Makers typically receive a rebate or a lower fee, while takers pay a slightly higher fee.
The Trading Fee Formula
The standard formula for calculating your trading fee is:
Fee = (Number of Contracts Contract Face Value / Execution Price) Fee Rate
Maker and Taker Fee Rates
For most coin-margined futures contracts, the standard fee schedule is as follows:
- Maker Fee: 0.02%
- Taker Fee: 0.05%
This applies to both opening and closing a position. A limit order that rests on the order book and is later filled will typically qualify for the maker rate. A market order that fills immediately against existing orders will be charged the taker rate.
Trading Fee Calculation Examples
Let's walk through practical examples to see how this formula is applied.
Example 1: Trading BTC Contracts
- Scenario: You open a long position with 200 BTC weekly contracts (face value: $100) at a price of $5,000 per BTC using a market order. Later, you close the position with a limit order at $6,000 per BTC.
- Opening Fee (Taker): (200 100 / 5000) 0.05% = 0.002 BTC
- Closing Fee (Maker): (200 100 / 6000) 0.02% ≈ 0.000667 BTC
- Total Trading Fees: 0.002 + 0.000667 = 0.002667 BTC
Example 2: Trading EOS Contracts
- Scenario: You open a long position with 200 EOS weekly contracts (face value: $10) at a price of $2 per EOS using a market order. You later close it with a limit order at $3 per EOS.
- Opening Fee (Taker): (200 10 / 2) 0.05% = 0.5 EOS
- Closing Fee (Maker): (200 10 / 3) 0.02% ≈ 0.133334 EOS
- Total Trading Fees: 0.5 + 0.133334 = 0.633334 EOS
👉 Explore advanced trading fee calculators
How Delivery Fees Are Calculated
If you hold a position until its expiration date without closing it manually, the system will automatically settle, or "deliver," the contract. This process incurs a delivery fee, which is separate from the trading fees.
Delivery fees are generally charged at a different rate than trading fees. For Bitcoin (BTC) contracts, the rate is often lower than for other cryptocurrencies.
Standard Delivery Fee Rates
- BTC Contracts: 0.015% of the position's value in BTC.
- Other Contracts (e.g., EOS): 0.05% of the position's value in the underlying asset.
Delivery Fee Calculation Examples
The formula is similar to the trading fee formula but uses the official settlement price at the time of delivery.
Example 1: BTC Contract Delivery
- Scenario: You hold 20 BTC weekly contracts (face value: $100) until delivery. The system's settlement price is $1,000 per BTC.
- Delivery Fee: (20 100 / 1000) 0.015% = 0.0003 BTC
Example 2: EOS Contract Delivery
- Scenario: You hold 20 EOS weekly contracts (face value: $10) until delivery. The system's settlement price is $2 per EOS.
- Delivery Fee: (20 10 / 2) 0.05% = 0.05 EOS
Strategies to Minimize Your Trading Fees
While fees are unavoidable, savvy traders employ strategies to reduce their impact on overall profitability.
- Aim for Maker Orders: Whenever possible, use limit orders to provide liquidity and qualify for the lower maker fee rate.
- Plan Your Trades: Avoid holding positions to delivery if you can close them manually earlier, as delivery fees can sometimes be less optimal than a well-planned closing trade.
- Understand Fee Tiers: Some platforms offer lower fees based on your 30-day trading volume or the amount of native token you hold. 👉 Get more strategies for fee optimization
- Factor Fees into Your Profit Targets: Always include potential fee costs when calculating your entry and exit points to ensure you still achieve your desired net profit.
Frequently Asked Questions
What is the difference between a maker and a taker?
A maker is a trader who places an order that adds liquidity to the order book, like a limit order that isn't immediately matched. A taker is a trader who places an order that immediately removes liquidity, like a market order. Makers typically receive a fee rebate or pay a lower fee.
Why are fees deducted from my realized P&L instead of my balance upfront?
Fees are only incurred when a trade is successfully executed. Since the fee amount depends on the final execution price and size, it is calculated and deducted after the trade is complete, directly affecting the profit or loss from that specific transaction.
Are the fee rates in this guide guaranteed?
No. The rates used here (0.02% for maker, 0.05% for taker) are standard examples for educational purposes. Actual fee rates can vary between different trading platforms and may change over time. Always check the latest fee schedule on your chosen exchange.
How do I avoid paying a delivery fee?
To avoid a delivery fee, you must actively close your position before the contract's expiration time. Monitor contract details carefully to know the exact settlement deadline.
Do I pay fees on both winning and losing trades?
Yes, trading fees are applied to every executed order, regardless of whether the overall trade was profitable or not. This makes managing fee costs essential for long-term success.
Is it more cost-effective to trade coin-margined or USDT-margined futures?
The cost-effectiveness depends on the specific fee structures, which differ between platforms and contract types. Generally, you must compare the percentage rates and consider whether you prefer to manage risk and profit in crypto (coin-margined) or in a stablecoin (USDT-margined).