When the leverage multiple is large, how much can the transaction fee account for the principal?

Based on the formula and values in the diagram below, let's do some calculations.

Assuming this user trades at market price, opening and closing positions.

Transaction fee expenditure = 47063.44 × 0.05% × 2 = 47.063U.

Because this user has high leverage, the transaction fee accounts for 12.5% of the principal.

In the diagram below, the user's profit is about to reach 1000%. Please do not be envious; you can see that the opening price and liquidation price differ by only 24U. This is the risk they took.

It can be seen that with higher leverage, the value of the position increases, and the proportion of transaction fee expenditure relative to the principal increases.

As long as there is trading, transaction fees will be incurred. Short-term high-frequency contract transaction fees can be considerable, but fortunately, they can be reduced.

1. Rebate: When registering an account, fill in the invitation code. You can enjoy a reduction in transaction fees based on the actual fees incurred by the user, refunded proportionally. (Transaction fee)

2. BNB Deduction: Transfer enough BNB to the corresponding account to cover the transaction fees, and you can enjoy a 10% discount on contract transaction fees and a 25% discount on spot transaction fees. (Transaction fee rate)

3. VIP Level: Upgrading the platform's VIP level can progressively lower the transaction fee rate. (Transaction fee rate) #手续费返佣