How to calculate Bybit contract transaction fee

Determining Bybit contract transaction fees involves understanding contract types, fee structure, calculating trading volume, and determining maker/taker fees based on the tiered fee structure and trading volume.

Nov 10, 2024 at 05:19 am

How to Calculate Bybit Contract Transaction Fee

Bybit, a leading cryptocurrency exchange, offers a wide range of contract trading options for its users. Understanding the transaction fees associated with these contracts is crucial for traders to optimize their profitability. This comprehensive guide will provide a step-by-step explanation of how to calculate Bybit contract transaction fees, addressing potential questions and providing detailed insights into each step.

Step 1: Determine the Contract Type

The first step in calculating Bybit contract transaction fees is to determine the type of contract being traded. Bybit offers two main types of contracts: perpetual and inverse perpetual contracts.

• Perpetual Contracts: Perpetual contracts are contracts that have no fixed expiry date and can be held indefinitely.
• Inverse Perpetual Contracts: Inverse perpetual contracts are a type of perpetual contract that is priced in the inverse of the underlying asset.

The transaction fees for perpetual and inverse perpetual contracts differ slightly, so it is important to identify the contract type before proceeding.

Step 2: Identify the Fee Structure

Bybit employs a tiered fee structure for its contract trading, based on the trading volume of each user. The fee structure takes into account both the maker and taker fees.

• Maker Fees: Maker fees are charged to users who add liquidity to the market by placing limit orders.
• Taker Fees: Taker fees are charged to users who remove liquidity from the market by executing market orders.

The fee tiers are as follows:

Step 3: Calculate the Trading Volume

Next, you need to calculate the trading volume for the contract you are trading. Trading volume refers to the total amount of the underlying asset that has been traded over a specific period.

To calculate the trading volume, multiply the number of contracts traded by the contract size. For instance, if you traded 10 contracts, each with a contract size of 1 BTC, your trading volume would be 10 BTC.

Step 4: Determine the Fee Rate

Based on your trading volume, you can determine the applicable fee rate from the tiered fee structure (Step 2). For example, if your trading volume is 15 BTC, you would use the fee rate for the 5 BTC - 50 BTC tier.

Step 5: Calculate the Maker or Taker Fee

Depending on whether you are placing a limit order (maker) or a market order (taker), you will be charged either the maker fee or the taker fee.

The maker fee is calculated by multiplying the trading volume by the maker fee rate. For instance, if your trading volume is 15 BTC and the maker fee rate is 0.005%, your maker fee would be 0.00075 BTC (15 BTC * 0.005%).

The taker fee is calculated by multiplying the trading volume by the taker fee rate. Using the same example, if the taker fee rate is 0.05%, your taker fee would be 0.0075 BTC (15 BTC * 0.05%).

It is important to note that while makers typically receive a rebate on their fees, there may be instances where they are charged a taker fee instead.