Fees?

[Ararbermas]

The higher the leverage the high the fee that will be deducted after you close the position. .

so there's always a fee even you place your order once the leverage is getting higher,? actually i've been using binance and at first and i was wondering why there's a 1$ missing on my spot account after placing order and when i see that i have good profits for example $10 after closing my position, what i received is $9 only.. It's very confusing to be honest.
So it means if you have large amount to trade they will dump a big amount of fees as well wherein everytime you place and close order? Just asking. 

[Charles-Tim]

So it means if you have large amount to trade they will dump a big amount of fees as well wherein everytime you place and close order? Just asking. 

So far the trading fee is in percentage, the higher amount you trade with the higher the fee, the higher the leverage, the high also the fee.

[bittraffic]

So it means if you have large amount to trade they will dump a big amount of fees as well wherein everytime you place and close order? Just asking. 

So far the trading fee is in percentage, the higher amount you trade with the higher the fee, the higher the leverage, the high also the fee.

This is why I don't try leverage because I don't understand it like how it works on Forex where the spread is fixed. But isn't binance going to ask BNB as fees?

I'm doing Spot in Binance too but it seems easier in the spot since you just have to buy and wait for the price to go up and then dump, easier done than said to me.
Looks like he is in the spot by his post here. It's just that he doesn't have BNB in his account.

[Charles-Tim]

This is why I don't try leverage because I don't understand it like how it works on Forex where the spread is fixed. But isn't binance going to ask BNB as fees?

There are two types of leverage you can go for on binance

• margin trading
• future trading

But to make it easier, going for future contract is better but margin trading support more coins than future trading.

For margin trading, 3x max for cross-margin while 10x max for isolated margin. If you trade with BNB with margin trading, you will be charged in BNB, if you trade with any coin of your choice, the fee will be deducted with the coin you are trading with.

For future contract, there are two types

• USD-M, which means your trading fund will be in USDT

• COIN-M, you trading fund will be in Bitcoin

Your trading fee will be charged with either one you used to trade, trading fee is deducted from the fund you use to trade.

[sana54210]

Thanks all for the advice. I've come to the conclusion I don't understand this well enough to continue right now with the knowledge and funds I have, so I will withdraw my funds and endeavour to learn more before trying again.

I may have come across as though I was annoyed at this outcome, but actually I was more just confused and didn't know how to find the explanation myself. I'm glad I tried and learned some more, even though I may have actually lost a small amount of dollars  I now realise I just need to do a lot more research.

This is the best conclusion you could have made from the current situation you are in. If you do not have enough money to make a bigger profit then trying to earn that extra 5 bucks will not be worth the time and effort you are putting in. Don't get me wrong you could try to make more money from the 500+ dollars you have, like putting it all on bitcoin right now seems like a good idea, or even eth, but if you did that a month ago it is surely would be a lot bigger right now.

The point here is not the capital you have, but how much you are aiming at and that means we are talking about a small amount here, trying to earn 5 dollars is the problem, even people with 20-30 bucks aim at 5 bucks, so having 500+ dollars, you should be aiming to make a lot more money and not only this much. You should learn a bit more about trading and come back later.

[teosanru]

So, I made my first 'day trade' today. I thought I'd done well to get ~ $5 margin from it, but when I went to check the actual profit it, it was only ~ $1. What gives?

I'm using binance and I think it said the fee for spot trading was 0.075%? I checked the order history and it said it had taken around 0.00001120 BTC in fees. Okay, fine but where has the other $3.60 got to?  forgive me if I'm being dumb somehow but that sort of fee seems awfully high for one spot trade.

Did you use market order or limit order? Generally, there is a small slippage that you pay in market order because the market order tries to sell your coins at whatever rate it can get to sell, I think that might have been the case. or you might be calculating fees wrongly, fees are charged on both buying as well as selling so you should multiply the fees by two for proper calculation. These two charges are generally the reason why you end up paying some extra charges. Unless you are just practicing trading and not doing it to earn money these small trades will make sense but if you want to make some money trading you need at least a thousand dollars to start with.

[Oshosondy]

Unless you are just practicing trading and not doing it to earn money these small trades will make sense but if you want to make some money trading you need at least a thousand dollars to start with.

You have a good point that it can be a market order used to place the trade and also when closing the trade, but there is still a certain amount of fee that will be removed even if it is limit order that is used, in margin trading, the liquidity is very high and this makes the market order to almost have similar price to the limit order if the limit order is placed so close to the present price of the coin traded in the market.

About trading, you do not know if he is a new trader or not, new traders are not advisable to use high amount of money to trade, $50 is still enough, his subsequent winnings or losses will let him determine if to increase the trading amount or not.

[teosanru]

Unless you are just practicing trading and not doing it to earn money these small trades will make sense but if you want to make some money trading you need at least a thousand dollars to start with.

You have a good point that it can be a market order used to place the trade and also when closing the trade, but there is still a certain amount of fee that will be removed even if it is limit order that is used, in margin trading, the liquidity is very high and this makes the market order to almost have similar price to the limit order if the limit order is placed so close to the present price of the coin traded in the market.

About trading, you do not know if he is a new trader or not, new traders are not advisable to use high amount of money to trade, $50 is still enough, his subsequent winnings or losses will let him determine if to increase the trading amount or not.

I don't think OP is talking about margin trading, I think he is talking about the profit margin of $5 he made in the trade, margin here doesn't means the leverage he took, my answer was based on this assumption that OP is trading in spot and made a margin of this much, secondly he has clearly written he made his first day trade today so he definitely is a new day trader for sure.

[otundebis]

The fee you are quoting here are somewhat insignificant,  the centralized exchange is still the best when it comes to fee for trading and that come at a cost of losing the custody of your asset to third party!  People pay lots of fee on decentralized exchange like uniswap and of course,  you are have control of your asset! Buy and large,  Cryptocurrency is the only place where you can pay stipend to move millions of dollars!

[Slow death]

Thanks all for the advice. I've come to the conclusion I don't understand this well enough to continue right now with the knowledge and funds

This is not just happening to you, it has also happened to me and I can't understand these high binance fees, see that I trade binance for years and in the last few months it seems that they increased the trade rate, as I don't trust other exchanges much I still use binance, but don't worry, you're not the only one who doesn't understand these binance fees.

People pay lots of fee on decentralized exchange like uniswap and of course

it reminds me of a day I paid $34 fee and stopped using uniswap

[leea-1334]

Dont make your trades last more than a day. Some trades eats a lot of trading fee especially if theres no volatility.
A friend of mine trades only on spike and makes a 100x leverage, he puts a target profit and once it hits, he stop trading. He reads the chart and wait for another opportunity.

OP already answered and he will not be doing it anymore. But actually I wanted to just point our your mistake. There is fees charged only on closing a trade, I do not know any exchange that will ask you to pay fee to keep your trades open (unless you are doing forex then you may have overnight interest).

[Sweetbtc]

Some coins have too much fee, and when someone buy them then it is too difficult for the users, As i can give you an example, yesterday when i was selling my Ping Token then i put his slippage 12% , when i sell it, that requires more than 10 dollars of fee, so i was in losing all these dollars when selling it.