10. BitMEX Margin Transaction Fee

 

 

 

Fees (手续费) are fees paid by users in exchange for using certain services.

 

Just as income has income and expenses, investments have both profit and loss and transaction costs.

 

 

 

 

Transaction costs are largely divided into commissions and slippage.

 

Minimizing this has a big impact on long-term returns.

 

So, study the fee in detail,

 

It is very important to establish a strategy to minimize this.

 

 

 

 

This time, I will tell you about the types of fees and tips to minimize them!

 

 

 

 

 

There are generally three types of fees on the BitMEX futures exchange.

 

First, trading fee

 

Second, Deposit and Withdrawal Fee

 

Third, the funding fee

 

 

 

1. Transaction Fee

 

 

 

 

 

 

 

- The Maker fee is -0.025%, and the Taker fee is 0.075%.

 

- Maker plays the role of accumulating properties at the asking price by placing a limit order, and helps traders who trade at the market price to enter/close at the desired asking price.

 

- The reason fees are marked as negative (-) is because you are receiving payments, not paying fees. This is to receive commissions as a reward in exchange for providing liquidity to takers.

 

- Conversely, takers can be understood as traders who take the quote price set by the maker.

 

- These are groups who place orders at the market price and enter a position at the current market price. Takers have to pay a fee of 0.075%, which is cheaper than spot exchanges (minimum 0.1% to 0.2%).

 

 

 

 

2. BitMEX deposit and withdrawal fees

 

 

 

 

 

 

 - BitMEX Exchange does not support deposits in KRW. Therefore, you need to purchase the bitcoin you have in your personal wallet or bitcoin from the domestic exchange and send it to BitMEX.

 

- When depositing and withdrawing from a domestic exchange <-> BitMEX, you only need to pay the Bitcoin network fee for both.

 

- The Bitcoin network fee is proportional to the speed of the Bitcoin blockchain, and BitMEX recommends a minimum of 0.003 BTC.

 

- Also, when you apply for withdrawal, the withdrawal is not made immediately, but is sent from the traders who applied for withdrawal at 10 pm Korean time.

 

 

3. BitMEX funding fee

 

 - The BitMEX exchange supports trading with Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, and Chainlink. You can see that the leverage multiple, short long funding and short short funding provided by each coin are different.

 

- The difference in the leverage multiple is proportional to the trustworthiness of each coin, and the funding cost fluctuates in real time according to the short buying or short selling ratio of market participants. And they all have to be paid or paid out every 8 hours.

 

- The reason why futures can have lower fees than spot is that they are derivatives. Derivatives are products that track the price of the asset rather than actually holding the coin. And since it is a financial product that estimates the price, a price gap (NAV%) with the spot may occur. And the tool that can minimize the price gap between spot and futures is the funding fee system.

 

- Funding fee is paid or received 3 times a day at 5:00 AM / PM 1:00 / PM 9:00 Korean time. This is a case of exchanging a commission between a long position and a short position. One side is deducted, and the other side receives it.

 

 

 

 

 

- If you look at the example image above, you can see that the current position is a green button, so you have traded in a short position. In this case, the funding rate and funding cost are shown in the lower left corner.

 

- This example means that when the funding time comes after 29 minutes, 0.0015XBT, which is 0.01702% of the position value, will be deducted.

 

- Then, if you hold a short position at the same time, it will be displayed in green text and you will receive 0.0015XBT at the time of funding.

 

- At this time, if you hold the position for only 1 second at the time of funding, you will be paid or deducted.

 

 

 

Tips for reducing fees!

 

 

 

1. Let's Trade Perpetual Futures Contracts!

 

There are several different types of cryptocurrency futures. Among them, the perpetual contract market is the market with the most volume and the largest number of traders. High trading volume means abundant liquidity, which is a factor that can minimize slippage.

 

2. Let's make good use of the limit price rather than the market price!

 

The limit is paid a commission. By reducing fees, you can improve your returns, which can be snowballed in the long run, which can be a huge benefit. However, it is necessary to review whether the limit order is suitable for the strategy you are using!

 

3. Observe the funding cycle carefully!

 

Funding fee is updated every 8 hours. If you are going to enter a position where you have to pay a funding fee and the next cycle is not far away, you can minimize the transaction cost by waiting for a while and placing a limit order.

On the other hand, if you plan to enter a position that receives a funding fee, you can take a strategy of entering the position before reaching the next cycle and receiving the funding fee and exposure in the desired direction.

In addition, by using the strategy of entering the position that is paid before the next cycle at the designated price for the funding fee, you can receive a maker fee and funding fee and close the position immediately to get a stable profit.

 

 

 

 

 Next time, we will learn more about the funding fee!

If you want to know more about the funding fee, please click here!