Ⅰ. How is the Service Fee Calculated?
Users can invest in all trading pairs provided in the platform, but the margin used, profit and loss will be calculated in BTC.
Bexplus will charge a service fee in every transaction (opening a position or closing a position). Below is the service fee rate for different trading pairs.
Only when opening a position and closing a position, the service fee will be charged according to the purchased contract value(in BTC) and pairs, and it will be deducted from the balance in real-time. It will not be calculated into floating profit. You can view the details in the transaction history. It is calculated based on contract value (transaction volume).
Calculation example for BTC/USDT
Take BTC worth $5,000 as an example, a trader opened a buy contract worth 10 BTC and the margin used was 0.1 BTC with 100x leverage. One hour later, when the BTC price reached $5,200, the trader closed the position.
The trader's earnings will be: Contract value*(Closing price-Opening price)=10*(5,200-5,000)=2,000
The current value of earnings in bitcoin: Earnings/Closing bitcoin price=2,000/5,200=0.38461538 BTC
Open position service fee: Contract value in BTC * 0.075% =10* 0.075%= 0.0075 BTC
Close position service fee: Contract value in BTC * 0.075% =10* 0.075%= 0.0075 BTC
Sum of service fees =0.075*2= 0.015 BTC
Calculation example for ETH/USDT
Take BTC worth $5,000 and ETH worth $350 as an example, a trader opened a buy contract worth 100 ETH and the margin used was 0.07 BTC with 100x leverage. One hour later, when the BTC price reached $5,200 and the ETH price reached $380.
The trader's earnings will be: Contract value*(Closing price-Opening price)=100*(380-350)=3,000
The current value of earnings in bitcoin: Earnings/Closing bitcoin price=3,000 /5,200=0.576923077 BTC
Open position service fee: Contract value in BTC* 0.151% =[(350*100)/5,000]* 0.151%= 0.01057000 BTC
Close position service fee: Contract value in BTC* 0.151% =[(380*100)/5,200]* 0.151%= 0.01103462 BTC
Sum of service fees =0.01057000+0.01103462= 0.0216046 BTC
1. Margin used=[Current price of the pair*Contract value)/100 times]/BTC current price
Take ETH/USDT as an example:
A trader opened a buy contract worth 100 ETH when the BTC price reached $5,000 and the ETH price reached $350, thus the margin used was:
2. Contract value (in BTC)=(Current price of the pair*volume)/BTC current price
Ⅱ. Why Does the Service Fee of Bexplus Look Higher?
Bexplus has sufficient market depth to provide users with instant and real-time order transaction speed in CFD(Contract for Differences) Trading.
Different from most main Matchmaking Trading exchanges in the market, Bexplus performs well in market depth, which is to ensure that your buying price and selling price will not generate deviation. It ensures 100% of the user's presumptive profit under the target cost.
What you see is what you get. This is the core of the Bexplus trading policy. It allows traders to：
1) accurately complete the order at a target price;
2) precisely seize the market signal to make target profit;
3) make sure that the dealing price cannot be controlled by the trading platform.
You can find it in most traditional futures trading that a market order will generally be executed at or near the current bid (for a sell order) or ask (for a buy order) price:
- For sell orders, it will be executed by the best bid price from the top downwards until the assets we want to sell run out.
- For buy orders, it will be executed by the best ask price from the bottom to the top until the assets we used to buy run out.
Actually, this type of market order does not ensure the best-executed price, especially when the market fluctuates dramatically; the market order might be executed at a much higher or lower price.
Taking an example, suppose the current token price is $50,000.
In the traditional trading order, trading profits will decrease by 1% when the average open price has a price deviation of 0.01%. It results in: a) the greater the market price fluctuations, the larger the price deviation; b) the greater the trading volume, the larger the price deviation, and makes the greater decline in the rate of return.
However, the market maker mechanism on Bexplus that provides sufficient market depth will guarantee the position is executed exactly and completely at $50,000.
Based on this unique trading mechanism, the profit on Bexplus is of 100% certainty after deducting the service fee, while that of other exchanges might be uncertain due to market price fluctuations and trading volume.
So we can conclude that the service fee of Bexplus is not that high as it seems, on the contrary, Bexplus fees are transparent, predictable, free of platform manipulation, and easy to calculate.
You may want to learn more:
What is a traditional market order?
The traditional market order is a kind of order to buy or sell a trading product immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order will generally execute at or near the current bid (for a sell order) or ask (for a buy order) price.
What is matchmaking trading?
In many crypto exchanges, the price on the order book is actually the bidding between buyers and sellers. Whether the order can be executed depends on the quotations of both sides.
When the prices of buyers and sellers match, the exchange will give feedback on the trading results to investors and publicize them on the market, which is the so-called Recent trade. This process is matchmaking trading.