How to calculate BingX contract handling fee

Understanding the BingX contract handling fee calculation empowers traders to navigate the exchange's competitive fee structure, enabling informed decision-making and efficient trading strategies.

Nov 23, 2024 at 04:22 pm

How to Calculate BingX Contract Handling Fee

BingX, a renowned cryptocurrency exchange, provides a comprehensive suite of contract trading services, empowering traders with advanced tools and competitive fee structures. Understanding how to calculate the contract handling fee is crucial for effective trading decision-making.

1. Identify Contract Type and Trading Volume

The first step in calculating the contract handling fee is to determine the type of contract being traded and its trading volume. BingX offers various contract types, including perpetual and delivery contracts, with each having its own fee structure. Additionally, the trading volume, represented in the number of contracts traded, directly affects the fee calculation.

2. Determine Fee Rate

BingX maintains a tiered fee structure based on the trading volume. The higher the trading volume, the lower the fee rate. The exchange provides a detailed fee schedule on its website, specifying the fee rates for different trading volumes and contract types. Traders can refer to this schedule to determine the applicable fee rate for their trades.

3. Calculate Tier-Based Fee

Based on the trading volume and fee rate, the tier-based fee is calculated. This fee is a proportional charge applied to the trading volume. The tier-based fee schedule provided by BingX outlines the fee percentages for different trading volume tiers. Traders can locate their tier in the schedule and apply the corresponding fee percentage to the trading volume.

4. Apply Maker/Taker Fee Multiplier

Depending on the role played in the trade, makers and takers are subject to different fee multipliers. Makers are traders who provide liquidity by placing limit orders that do not immediately execute. Takers, on the other hand, are traders who remove liquidity by executing existing orders. BingX applies a lower fee multiplier to makers, incentivizing them to maintain a healthy order book.

5. Calculate Contract Handling Fee

The final step involves multiplying the tier-based fee by the applicable maker/taker fee multiplier. The result represents the contract handling fee incurred for the trade. Traders can use the following formula to calculate the fee:

Contract Handling Fee = Tier-Based Fee * Maker/Taker Fee Multiplier

Example Calculation

Assume a trader executes a perpetual contract trade with a trading volume of 100 USDT. The applicable tier-based fee for this volume is 0.075%. The trader is considered a maker, entitled to a maker fee multiplier of 0.8.

Tier-Based Fee = Trading Volume * Tier-Based Fee Rate
Tier-Based Fee = 100 USDT * 0.075% = 0.075 USDT

Contract Handling Fee = Tier-Based Fee * Maker/Taker Fee Multiplier
Contract Handling Fee = 0.075 USDT * 0.8 = 0.06 USDT

In this example, the trader incurs a contract handling fee of 0.06 USDT for their perpetual contract trade.