Binance hidden fees

[Sergey EXMO]

Hey all. Just wondering why Binance doesn't account for its fees into unrealized and even realized PL for futures? Technically if the position is open, it's inevitable that you will pay the transaction fee when will be closing it.

You see + $50 dollars in unrealised PL section for your position, you close it and your balance decreases.
Here are details: https://www.youtube.com/watch?v=V15p4TL-eyg&t=54s&ab_channel=Financenerd

[Oshosondy]

That is how it is on exchanges, including Binance. If you open a position, fee would be deducted. If you close a position, fee would also be deducted.

Assuming the trading fee is 5%. 5% would be deducted if you open long position and another 5% would be deducted from your money plus PnL after closing a position.

[Sergey EXMO]

sure they charge fees but why they don't account fees in unreaised PL of open position? This makes you overestimate your PL. As I texted before, you may see green unrealized PL and then close position and get negative (not because of slippage but because they hide fees)

[Oshosondy]

sure they charge fees but why they don't account fees in unreaised PL of open position? This makes you overestimate your PL. As I texted before, you may see green unrealized PL and then close position and get negative (not because of slippage but because they hide fees)

I do not know what you are talking about. On all the exchanges that I am using, I do calculate the fee. I have calculated the fee for opening position and closing positions on Binance before, several times, but the fee is accurate, although I do not know of now but I still calculated it several times this year and I saw no fault.

This thread supposed not to be in scam accusation board, it supposed to be on exchanges board.

[348Judah]

sure they charge fees but why they don't account fees in unreaised PL of open position? This makes you overestimate your PL. As I texted before, you may see green unrealized PL and then close position and get negative (not because of slippage but because they hide fees)

Maybe you should know exchanges for that, this is not about Binance alone, when you're using a centralized exchange, they will not show you the amount of fee they are charging you for making a transaction and same also is applicable for opening and closing a position, you will be charged but they wouldn't display the fee, only non custodial wallet like cold storages are the ones that display you the transaction fee before you make send it, but they aren't exchanges.

[MainIbem]

If you read about their charges you would find them there are no hidden fees, this is natural or do i say its applicable to all centralized exchange I have been using Binance for long now.

[Vispilio]

That's one of the first things you need to remember about trading with leverage, the transaction fees will be charged on the notional your position represents, not on the margin you are using, so if you use a very high leverage like 20x and above, you will feel the effect of this on the fees, especially if you are doing high frequency, so either lower your leverage or account for the fee multiplier because of leverage.

The other factor is the funding fee, which can accumulate on longer timeframes or during periods of high market volatility when long / short interest might get skewed heavily...

[rat03gopoh]

The total realized PnL will be recorded in the history of your trading activities. I don't know which country you live in, if we talk about taxes related to trade that might be a reason. In general jurisdictions, user taxes are calculated based on income before deducting service fees.

They have written about the fees somewhere in the user guidance, I think you just missed it.

[CreepyUncleJoe]

Trading with leverage can be tricky. Always factor in fees, especially with high leverage. It's like they say, "Know your fees, know your game."

[BitcoinsGreat]

sure they charge fees but why they don't account fees in unreaised PL of open position? This makes you overestimate your PL. As I texted before, you may see green unrealized PL and then close position and get negative (not because of slippage but because they hide fees)

I do not think that they are hiding any fee here. It is the usual behavior when you close the future trade with leverage. By the way, have you tried to trade on any other exchange and did not face the same issue ?

For binance trading fee and how it works, you may go through their trading fee pages.
https://www.binance.com/en/fee/futureFee

[arabspaceship123]

Why's this in the scams board if they're showing a fees page. Binance aren't stealing because they're letting you know how much you'll pay. Why's your question about Binance. You should've looked at fees charged by centralised & decentralised exchanges so you wouldn't be surprised.

[Bitcoin_Arena]

sure they charge fees but why they don't account fees in unreaised PL of open position? This makes you overestimate your PL. As I texted before, you may see green unrealized PL and then close position and get negative (not because of slippage but because they hide fees)

How do you expect them to calculate it under unrealized PnL lol

1. You open a position using market or limit order, they deduct their fee which you know they have to.
2. And then there is an 8 hourly or 4 hourly funding fee depending on the positions you are holding
3. You close your position (They don't know when you will do this and/or whether you are going to use a limit order, market order) so tell me again how you expect them to include this in Unrealized PnL if they don't know which type of closing order you are going to use because the fees vary.

There are no hidden fees... Please read and understand how things work.

[Shenanigan]

There are no hidden fees... Please read and understand how things work.

I read the entire topic and came to the conclusion that this happens on all exchanges.

But I honestly don't like this Binance. Sometimes they act like shenanigans