Futures Trading Fees, Limits, and Rules

This article outlines the trading fees, funding fees, position limits, and key rules for BITGP’s Futures trading platform. Understanding these components is essential for managing costs and trading effectively.

Futures Trading Fees

BITGP offers competitive trading fees tailored to support active traders. Below is a breakdown of the primary fee structures:

1. Maker and Taker Fees:
   • Maker Fee: As a market maker (placing limit orders that add liquidity), you enjoy lower fees. The standard maker fee is 0.02%.
   • Taker Fee: As a taker (placing market orders that remove liquidity), you incur slightly higher fees. The standard taker fee is 0.06%.
2. Funding Fees:
   • Funding fees are periodic payments exchanged between traders to keep perpetual contract prices aligned with the underlying spot price.
   • Paid Between Traders: BITGP does not collect funding fees; they are transferred directly between long and short position holders.
   • Charged Every 8 Hours: Funding occurs at 00:00 UTC, 08:00 UTC, and 16:00 UTC.
   • Formula: Funding Fee = Position Value × Funding Rate
     • Position Value: Calculated as the contract quantity multiplied by the entry price.
     • Funding Rate: Determines which side pays. A positive rate means long traders pay short traders; a negative rate means short traders pay long traders.
3. Leverage and Margin Impact on Fees:
   • Higher leverage increases the position value, directly affecting both trading fees and funding fees.
   • Fees are calculated based on the Position Value, not the margin.

Futures Trading Limits

To maintain a fair and efficient trading environment, BITGP enforces the following limits:

1. Minimum Order Size:
   • Varies by contract and trading pair. Examples:
     • BTC/USDT (USDT-M Futures): 0.001 BTC
     • ETH/USDT (USDT-M Futures): 0.01 ETH
2. Maximum Position Size:
   • Limits depend on the trading pair and your VIP level.
   • Check specific position limits in the Position Limits section of your trading interface.
3. Leverage Limits:
   • BITGP offers varying leverage levels based on the futures contract:
     • USDT-M Futures: Up to 125x leverage
     • Coin-M Futures: Up to 125x leverage
     • USDC-M Futures: Up to 125x leverage
   • For more details, refer to Futures Details on the BITGP website.

Key Futures Trading Rules

1. Account Requirements:
   • KYC Verification: Users must complete at least Level 1 Know Your Customer (KYC) verification to access full trading features.
   • Futures Wallet: Ensure sufficient funds are available in your Futures Wallet before trading.
2. Supported Futures Contracts:
   • View all available contracts in the Futures Trading section.
3. Trading Mechanism:
   • Orders are matched in real-time via the Order Book.
4. Liquidation Mechanism:
   • Liquidation occurs if your Margin Risk Ratio reaches the Liquidation Risk Ratio.
   • Any remaining collateral post-liquidation is returned to your account.
5. Trading Restrictions:
   • Some contracts or trading pairs may have regional restrictions due to regulatory requirements. Confirm availability before trading.

How to Check Trading Fees on BITGP

Please visit https://www.bitgp.com/fee for more information.

FAQs

1. What is the default fee rate for futures trading?
   • Default Maker fee: 0.02%; Taker fee: 0.06%.
2. How can I reduce my fees on BITGP?
   • Hold BGB tokens or upgrade to a higher VIP level for discounted rates.
3. What is the minimum trade size for futures trading?
   • It varies by contract. For example, BTC/USDT (USDT-M Futures) requires 0.001 BTC.
4. What happens if my position is liquidated?
   • Your position is closed automatically, and any remaining collateral is returned to your account.
5. Are there regional restrictions for futures trading?
   • Some trading pairs may be restricted by region due to regulations. Verify availability in your area.

Disclaimer and Risk Warning

All trading tutorials provided by BITGP are for educational purposes only and do not constitute financial advice. The strategies and examples shared are illustrative and may not reflect real-time market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance is not indicative of future results. Always conduct thorough research and understand the risks involved. BITGP is not responsible for any trading decisions made by users.