How Are Cryptocurrency Trading Fees Calculated?

Cryptocurrency trading fees follow a straightforward rule: the fee is deducted in the same currency you receive. The amount is calculated by multiplying the received currency by the applicable fee rate.

Fee Calculation Examples

Let’s break it down with an example:

User A has a LV1 fee tier.
Trading pair: BTC/USDT.
Scenario: Selling 1 BTC for 10,000 USDT.

Fee Rates:

Maker (挂单): 0.08%
Taker (吃单): 0.1%

Case 1: All Maker Orders

Fee: 10,000 USDT × 0.08% = 8 USDT
Final amount: 10,000 – 8 = 9,992 USDT

Case 2: All Taker Orders

Fee: 10,000 USDT × 0.1% = 10 USDT
Final amount: 10,000 – 10 = 9,990 USDT

Case 3: Mixed Maker/Taker Orders

Fee: Between 8–10 USDT
Final amount: 9,990–9,992 USDT

Key Notes:

Uniform Rules: Both buyers and sellers pay fees in the currency they receive.
Fee Variations: Rates differ per trading pair (refer to the official fee schedule).
Order Types:
- Taker: Matches existing orders (immediate execution).
- Maker: Adds liquidity to the order book (waits for execution).
No Fees: Unfilled/canceled orders incur no charges.

Understanding Prices in Trading: Latest, Index, and Mark

In trading interfaces, you’ll encounter three price types:

1. Latest Price

The real-time execution price of the most recent trade.

2. Index Price

Derived from a weighted average of prices across multiple major exchanges.
Anchors contracts (e.g., USD index for coin-margined futures).

3. Mark Price

Used to prevent unnecessary liquidations by reflecting fair market value.

👉 Explore advanced trading strategies

Top Trading Patterns: Head and Shoulders (Escape the Top)

Head and Shoulders is a classic reversal pattern signaling a potential downtrend.

Structure:

Left Shoulder: Initial peak followed by a dip.
Head: Higher peak, then a deeper decline.
Right Shoulder: Lower peak, confirming the trend reversal.

Example: Ethereum’s USDT chart often shows this pattern before major drops.

Strategy Spotlight: Spot Martingale

A high-probability strategy rooted in gambling theory:

How It Works:

Double your investment after each loss to recover previous losses + profit.
Requires significant capital to sustain drawdowns.

👉 Master risk management

FAQs

Q1: Why are fees charged in the received currency?
A: Simplifies accounting and aligns with liquidity rules.

Q2: Can I avoid fees by only placing maker orders?
A: Yes, but execution isn’t guaranteed—market conditions matter.

Q3: What’s the safest way to trade with leverage?
A: Use options (limited risk) or set strict stop-loss orders.

Q4: How do I switch DNS for better stability?
A: Update DNS settings in your OS network preferences (tutorial linked above).