How to calculate Huobi contract fee

Understanding Huobi's contract fee structure, encompassing maker/taker fees, trading volume tiers, and leverage adjustments, is crucial for effective derivative trading on the platform.

Nov 21, 2024 at 11:06 am

Understanding Huobi Contract Fees

Huobi Global, a leading cryptocurrency exchange, offers a comprehensive suite of derivative trading services, including perpetual contracts. These contracts allow traders to bet on the future price of an underlying asset, offering a wide range of opportunities to profit and hedge. However, understanding the fee structure associated with Huobi contracts is essential for successful trading.

Steps Involved in Calculating Huobi Contract Fees

To accurately calculate contract fees on Huobi, follow these steps:

1. Identify the Contract Type:

Huobi offers various contract types, including USDT-margined, coin-margined, and cross-margined contracts. Each type has unique fee calculations, so it's crucial to determine the contract type you're trading.

2. Determine the Fee Structure:

Huobi's fee structure for contracts consists of two components: maker fees and taker fees. Maker fees are charged to traders who place orders that add liquidity to the order book, while taker fees are charged to traders who execute orders that consume liquidity.

3. Calculate Maker Fees:

Maker fees are determined based on the trading volume generated over a 30-day period. The higher the trading volume, the lower the maker fees. Maker fees for perpetual contracts range from 0.025% to 0.040%, depending on the trading volume tier.

4. Calculate Taker Fees:

Taker fees are fixed and do not depend on trading volume. Taker fees for perpetual contracts are typically 0.060%.

5. Consider Additional Fees:

In addition to maker and taker fees, there may be additional fees associated with contract trading, such as overnight funding rates. Overnight funding rates can be positive or negative, depending on market conditions. They are paid by traders who hold long positions to traders who hold short positions.

6. Leverage and Fee Adjustments:

The use of leverage can significantly impact contract fees. Higher leverage positions may attract higher fees due to increased risk exposure. Huobi offers a tiered fee structure that adjusts fees based on the leverage used.

Example Calculation:

Let's calculate the fees for a perpetual contract with an underlying asset value of $10,000 and a leverage of 10x.

• Maker Fee = 0.030% (assuming a 30-day trading volume of $100,000)
• Maker Fee Charge = $10,000 * 0.030% * 2 (as both legs of the trade involve a maker) = $6
• Taker Fee = 0.060%
• Taker Fee Charge = $10,000 * 0.060% = $6

Total Fees = $6 (Maker) + $6 (Taker) = $12

It's important to note that fee rates may change over time, so always refer to Huobi's official fee schedule for the most up-to-date information.