How are the handling fees for Bitcoin contract transactions calculated?

Key Points

• Types of BitMEX handling fees and their calculations
• How to minimize BitMEX handling fees
• FAQs on BitMEX handling fees

Handling Fees for Bitcoin Contract Transactions on BitMEX

Flat Fees:

• Settlement Fees (Taker and Maker):
  • Charged on all executed orders, regardless of order type.
  • Maker (order taker): 0.0001 XBT / contract (approximately $2)
  • Taker (order maker): 0.0002 XBT / contract (approximately $4)
• Withdrawal Fees:
  • Charged for withdrawals of XBT.
  • Current rate: 0.0005 XBT (approximately $10)

Variable Fees:

• Trading Fees:
  • Percentage fees charged based on the traded volume.
  • Taker: 0.075% (rebate of -0.025% if volume exceeds 50mtm)
  • Maker: -0.025%
• Funding Rates:
  • Variable fees charged on perpétuel futures contracts representing the relative demand between long and short positions.
  • Calculated and paid every 8 hours based on the funding rate.
  • Can be positive (longs pay shorts) or negative (shorts pay longs).

How to Minimize BitMEX Handling Fees

• Get a referral code: New users can receive a 10% discount on trading fees for up to six months.
• Become a market maker: Takers receive a 0.025% rebate on trading fees if their volume exceeds 50mtm per month.
• Use the referral program: Refer new users and earn up to 25% of their trading fees.
• Maximize profits: Traders can aim to profit enough to offset the handling fees incurred.

FAQs on BitMEX Handling Fees

What is the difference between a taker and a maker?

• A taker is an order that immediately matches with an existing order on the order book, executing a trade.
• A maker is an order that adds liquidity to the order book by placing an order that does not immediately match with another order.

How do I calculate the settlement fee for a BitMEX contract?

• Multiply the number of contracts by the settlement fee (0.0001 XBT for makers, 0.0002 XBT for takers).

What is a funding rate?

• A funding rate is a variable fee that represents the difference in demand between long and short positions in a perpetual futures contract.
• Calculated from a complex formula that considers factors such as interest rates, trade volume, and funding rates on other exchanges.

Can I avoid handling fees on BitMEX?

• No, handling fees are an inherent part of trading on BitMEX and cannot be fully avoided.
• However, by using the methods discussed above, traders can minimize the impact of these fees on their profits.