How to calculate AscendEX contract transaction fees

AscendEX's contract transaction fees incorporate various components such as contract value, tiered fee structure based on trading volume, and maker/taker fees, ensuring traders have a clear understanding of associated costs to optimize their strategies.

Nov 26, 2024 at 08:48 am

How to Calculate AscendEX Contract Transaction Fees

AscendEX, a reputable cryptocurrency exchange, provides a comprehensive platform for users to trade a wide range of digital assets, including futures contracts. To facilitate seamless trading, understanding the intricacies of transaction fees associated with contract trading is crucial. This detailed guide will delve into the various components that influence AscendEX contract transaction fees, empowering traders with the knowledge to optimize their trading strategies.

1. Spot Trading Fees on AscendEX

AscendEX employs a tiered fee structure for spot trading based on the user's 30-day trading volume. This structure is designed to incentivize high-volume traders with lower fees. The tiers and their corresponding maker and taker fees are outlined below:

• Tier 1 (VIP 0): Maker fee 0.2%, Taker fee 0.2%
• Tier 2 (VIP 1): Maker fee 0.15%, Taker fee 0.18%
• Tier 3 (VIP 2): Maker fee 0.1%, Taker fee 0.15%
• Tier 4 (VIP 3): Maker fee 0.08%, Taker fee 0.12%
• Tier 5 (VIP 4): Maker fee 0.06%, Taker fee 0.08%

2. Contract Trading Fees on AscendEX

Tier Structure for Contract Trading Fees

Similar to spot trading, contract trading fees on AscendEX are determined by a tier-based system. These tiers are categorized based on the user's 30-day futures trading volume.

Maker and Taker Fees in Contract Trading

The fee structure for contract trading distinguishes between maker and taker fees. Maker fees are charged to traders who place limit orders that add liquidity to the order book. Taker fees are incurred by traders who execute market orders that immediately remove liquidity from the order book.

Calculation of Contract Transaction Fees

The transaction fee for contract trading on AscendEX is calculated as follows:

Transaction Fee = (Contract Value Contract Fee Rate) Trading Volume

Contract Value

Contract value refers to the notional value of the futures contract, which is determined by multiplying the underlying asset's price by the contract size.

Contract Fee Rate

The contract fee rate is the percentage-based trading fee charged by AscendEX. The rate varies depending on the user's VIP tier and the specific contract being traded.

Trading Volume

Trading volume represents the total value of contracts traded during a specific period, usually calculated over a 24-hour period.

3. Additional Fees to Consider

Funding Fees

Funding fees are periodic payments made between traders who hold long and short positions on a futures contract. These fees are designed to maintain a balance between the two sides of the market and ensure that the futures contract price remains close to the spot price.

Overnight Fees

Overnight fees are incurred when a trader holds a position overnight. These fees are charged to cover the cost of financing the position and are typically a small percentage of the contract value.

4. Tips to Optimize Contract Transaction Fees

Tier Up Your Trading Volume

By increasing your 30-day spot or futures trading volume, you can ascend to higher VIP tiers, which entitle you to lower transaction fees.

Use Limit Orders

Placing limit orders instead of market orders allows you to take advantage of maker fees, which are typically lower than taker fees.

Consider Overnight Fees

If you plan to hold a position overnight, factor in the overnight fees to avoid incurring unnecessary costs.

Monitor Market Conditions

Keep abreast of market conditions, such as volatility and liquidity, which can impact contract transaction fees.

5. Conclusion

Understanding the intricacies of AscendEX contract transaction fees empowers traders with the knowledge to make informed decisions and optimize their trading strategies. By considering the factors outlined in this guide, traders can minimize fees and maximize their profit potential.