When we talk about fees, there are generally two types: maker fees and taker fees. The maker fee is charged when you add liquidity to the market by placing a limit order under the ticker price for a buy order, and above the ticker price for a sell order. The taker fee is charged when you remove liquidity from the market by placing any order that is executed against an order in the order book.
In general, maker fees are lower than taker fees. In this article, we will focus on the taker fees charged by Binance when you trade futures. We will also look at how you can calculate the Binance Future commission in TradingView.
Keep reading to learn more!
Binance Commission Fee Structure
Binance charges taker fees for all futures contracts as well as for other types of transactions. Generally, Binance Futures taker fees range from 0.02% to 0.150%. The fee rate varies based on your 30-day trading volume. Those with a trading volume of more than 1,000 BTC receive the lowest fees. Fees increase to 0.150% for those with less than 1 BTC in trading volume. In addition to taker fees, Binance also charges a funding fee for futures, which ranges from 0.01% to 0.074%.
The funding fee is a fee charged every 8 hours to account for the difference in interest between long and short positions. This fee is typically 0.02% but can be higher or lower depending on market conditions. This fee will be charged or rebated to the futures account every 8 hours.
How to calculate Binance Future commission?
Calculating your total Binance Future commission in Tradingview is simple. First, check the average 30-day trading volume of your Binance Futures account. This can be done by logging into your Binance Futures account and going to the ‘Futures Trading section. Here, you will see the 30-day trading volume for your account. Once you know your average 30-day trading volume, you can determine your taker fee rate by referring to Binance’s fee schedule.
Next, calculate your Binance Future funding fee by multiplying your total open positions in your Binance futures markets by 8 hours and multiplying the result by the current funding rate. To find the current funding rate, you can refer to the fee section of your Binance Futures account. Finally, you can calculate your total commission in Tradingview by adding your taker fee rate to your funding fee.
Other factors to consider
It’s important to remember that trading fees are not the only factor to consider when trading futures on Binance. You should also take into account the leveraged trading capabilities, slippage, and liquidity of the Binance markets. Leveraged trading allows traders to increase their profits, but it can also increase risk. With slippage, you need to be aware of the possible difference between your expected price and the actual traded price of a security.
Finally, you need to ensure that the Binance market you are trading in has enough liquidity. This will help you avoid the issue of your order not being filled or being filled at a much higher or lower price.
Calculating your Binance Future commission in Tradingview is easy. All you need to do is look up your 30-day trading volume and then refer to Binance’s fee schedule to get your taker fee rate. You can then calculate your Binance Future funding fee by multiplying your total open positions by 8 hours and multiplying the result by the current funding rate. Finally, add your taker fee rate to your funding fee to arrive at your total commission.
Remember that trading fees are not the only factor to consider when trading futures on Binance. You should also take into account the leveraged trading capabilities, slippage, and liquidity of the Binance markets.