How to calculate Bitget contract fees

Bitget's contract trading fees consist of taker and maker fees, with the taker fee being 0.08% and the maker fee 0.04%.

Nov 10, 2024 at 03:26 pm

How to Calculate Bitget Contract Fees

Bitget is a leading cryptocurrency exchange that offers a wide range of services, including contract trading. Contract trading is a type of derivative trading that allows traders to speculate on the future price of an underlying asset, such as Bitcoin or Ethereum.

When trading contracts on Bitget, it is important to understand how the fees are calculated. This will help you to make informed decisions about your trading strategy and to avoid any unexpected costs.

Bitget charges a taker fee and a maker fee for each contract trade. The taker fee is charged to the trader who takes liquidity from the order book, while the maker fee is charged to the trader who adds liquidity to the order book.

The taker fee is typically higher than the maker fee, as it is more difficult to take liquidity from the order book than it is to add liquidity. The taker fee on Bitget is 0.08%, while the maker fee is 0.04%.

In addition to the taker and maker fees, Bitget also charges a funding fee for each contract trade. The funding fee is a periodic payment that is made by the trader who is on the wrong side of the trade. The funding fee is designed to encourage traders to keep their positions balanced, and it is typically paid every 8 hours.

The funding fee on Bitget is calculated using the following formula:

Funding Fee = (Mark Price - Index Price) * Funding Rate * Contract Size

Where:

• Mark Price is the current market price of the underlying asset
• Index Price is the price of the underlying asset at the time the contract was opened
• Funding Rate is the current funding rate for the contract
• Contract Size is the size of the contract

The funding rate on Bitget is typically positive for perpetual contracts, which means that traders who are long on the contract will pay the funding fee to traders who are short on the contract. The funding rate is typically negative for inverse perpetual contracts, which means that traders who are short on the contract will pay the funding fee to traders who are long on the contract.

Here are the steps on how to calculate Bitget contract fees:

1. Identify the type of contract you are trading. Bitget offers two types of contracts: perpetual contracts and inverse perpetual contracts. Perpetual contracts are settled in the underlying asset, while inverse perpetual contracts are settled in USDT.
2. Determine the taker fee and maker fee for the contract you are trading. The taker fee is 0.08% and the maker fee is 0.04% for all contracts on Bitget.
3. Calculate the funding fee for the contract you are trading. The funding fee is calculated using the formula provided above. The funding rate for each contract can be found on the Bitget website.
4. Add the taker fee, maker fee, and funding fee to determine the total cost of trading the contract.
5. Consider the impact of the fees on your trading strategy. The fees on Bitget can have a significant impact on your trading profitability. It is important to factor the fees into your trading strategy and to adjust your trades accordingly.