Why are contract transaction fees so expensive, and how can they be reduced?
Why do some users find that when trading contracts, even though the yield rate shows positive when closing positions, the total funds in the position actually decrease? In fact, the lost portion of funds has served as the transaction fee for this closing trade, which is collected by the exchange. Therefore, experienced contract traders often advise beginners to trade less frequently and observe more. Frequent contract trading not only affects one's mindset and lowers the win rate but also increases trading costs. The accumulated transaction fees over time can also amount to a significant sum.
We come to the exchange to make money; if we blindly trade without first understanding the exchange's fee rules, we are likely to suffer losses. Currently, the contract transaction fees on mainstream exchange platforms consist of two parts: contract trading fees and funding fees.