Many traders doing contracts have reflected to me the question of why handling fees are so high, which may be due to several reasons:
First, the size of the position affects the handling fee.
The handling fee is calculated based on the market value of your holdings, not just your principal. This means that if you
resulting in correspondingly higher handling fees.
Second, the rate difference between market orders and limit orders.
Market orders usually incur higher fees than limit orders. For ordinary users, the market order fee is 0.05%,
while the limit order fee is 0.02%. Can you see it? The fee for market orders is indeed higher than for limit orders. Market orders consume significant liquidity,
Liquidity reduces trading depth, while exchanges usually encourage users to place limit orders, which is more economical.
Third, the commission rebate mechanism of the exchange.
Some people can enjoy lower rates because they not only choose limit orders but also benefit from each of their transactions.
Refund of handling fees. The fees incurred after each position opening will be refunded to your account through various methods.