How to calculate Bybit contract fee

Understanding Bybit's contract fee structure is critical for traders, as it depends on the contract type, position category, and market conditions.

Nov 12, 2024 at 01:49 pm

How to Calculate Bybit Contract Fee: A Comprehensive Guide

Introduction

Understanding contract fees is crucial for effective trading in the cryptocurrency derivatives market. Bybit, a leading cryptocurrency exchange, offers a range of derivative contracts with varying fee structures. This article provides a comprehensive guide on how to calculate Bybit contract fees, empowering traders to make informed decisions and optimize their trading strategies.

Step 1: Determine the Contract Type

The first step in calculating Bybit contract fees is to determine the type of contract being traded. Bybit offers three main types of contracts:

a) Inverse Perpetual Contracts: These contracts are quoted in USDT and settled in the underlying asset (e.g., BTC, ETH).

b) USDT Perpetual Contracts: These contracts are quoted and settled in USDT.

c) Inverse Quarterly Futures Contracts: These contracts are quoted in USDT and settled in the underlying asset on a quarterly basis.

The contract type will determine the applicable fee structure.

Step 2: Identify the Fee Category

Once the contract type is identified, the next step is to determine the fee category that applies to the trader's position. Bybit charges different fees based on the trader's position, including:

a) Maker Fee: Charged when a trader places an order that adds liquidity to the order book (i.e., limit orders).

b) Taker Fee: Charged when a trader fills an existing order on the order book (i.e., market orders).

c) Funding Fee: A fee paid or received by traders to adjust the price of a perpetual contract to the underlying index price.

Step 3: Calculate the Maker Fee

The maker fee varies depending on the contract type and is calculated as follows:

Inverse Perpetual Contracts: 0.01% - 0.025% of the contract value

USDT Perpetual Contracts: 0.01% - 0.03% of the contract value

Inverse Quarterly Futures Contracts: 0.015% - 0.075% of the contract value

Step 4: Calculate the Taker Fee

The taker fee is generally higher than the maker fee and is calculated as follows:

Inverse Perpetual Contracts: 0.02% - 0.05% of the contract value

USDT Perpetual Contracts: 0.03% - 0.06% of the contract value

Inverse Quarterly Futures Contracts: 0.025% - 0.1% of the contract value

Step 5: Calculate the Funding Fee

The funding fee is calculated based on the funding rate, which is determined by the demand and supply of a particular contract. The funding rate is usually a small percentage of the underlying asset's price. Traders who hold long positions pay the funding fee to traders who hold short positions.

Step 6: Combined Fee Calculation

The total contract fee payable is the sum of the maker fee, taker fee, and funding fee (if applicable). Traders can use the Bybit fee calculator to estimate the combined fee for their specific trading scenario.

Additional Considerations

• Fees may vary based on market conditions and Bybit's promotional activities.
• Certain membership tiers may qualify for reduced fees.
• Traders should always consult Bybit's official fee schedule for the most up-to-date information.