How is the trading fee calculated in a position

Fees structure on Bitseven

On BitSeven trading platform the trading fee is applied for the opening a position and also for the closing a position. For example, the trading fee for Bitcoin is 0.075%, and hence, for opening a BTC position the trading fee in amount of 0.075% will be deducted, and then, when this position will be closed, an additional fee in amount of 0.075% will be deducted. Thus, the total trading fee for opening/ closing a position will be in amount of 0.15% (0.075% + 0.075%).

You can find more information regarding the size of the fees for each cryptocurrency available on our platform at the following link: https://www.bitseven.com/Account/Fees

The size of the trading fee depends on the size of the leverage in the position. The bigger the leverage, the bigger the percentage of the trading fee (leverage * trading fee). The trading fee is calculated as follows (applicable to any cryptocurrency):

Fee = Order amount x Trading fee% x Leverage x 2(this formula calculates the total amount of the fee that will be paid for opening/ closing a position in the currency in which the position is opened).

Fee = Trading fee% x Leverage x 2 – (This formula calculates the total percentage of the fee that will be paid for opening / closing a position).

Let’s take a closer look at an example.

For instance, we’ve opened a position in amount of 1 BTC with 100x leverage. The direction (UP or DOWN) does not matter. Let’s calculate the trading fee for this position using the aforementioned formulas:

Fee = Order amount x Trading fee% x Leverage x 2 = 1 ВТС (amount of a position) * 0.075%(the trading fee for BTC) * 100х (leverage) * 2 = 0.15 ВТС

Fee = Trading fee% x Leverage x 2 = 0.075%(the trading fee for BTC) * 100х (leverage) * 2 = 15%

So, if we close this position, then the trading fee in amount of 0.15 BTC will be deducted, which is 15% of the volume (1 BTC) of our position.

Suppose, we want to add an another same-directional order to our existing position with a different leverage size. For instance, we open a new position in amount of 0.5 BTC with 25x leverage.

Note that, if you add a new same-directional order, your leverage will be averaged and recalculated. You can find more information regarding position calculation when adding a new same-directional order at the following link: How to calculate position data.

For our example, we need to find a new average leverage. This can be done using the following formula:

(Order amount (1) * Leverage (1) + Order amount (2) * Leverage (2) + … + Order amount (n) * Leverage (n)) / (Order amount (1) + Order amount (2 ) + … + Order amount (n))

Average leverage = (1 ВТС * 100х + 0.5 ВТС * 25х) / (1 ВТС + 0.5 ВТС) = 75х

After averaging the position, the average leverage of our position will be 75x. Also, note that, the position volume will be increased by the order volume and will be as follows: 1 BTC (initial position volume) + 0.5 BTC (added order volume) = 1.5 BTC.

Let’s now calculate the size of the trading fee in our new position:

Fee = 1.5 ВТС * 0.075% * 75х * 2 = 0.16875 ВТС.

Fee = 0.075% * 75х * 2 = 11.25%

So, at the time of closing the position, we shall pay the trading fee in amount of 0.16875 BTC or 11.25% of the volume of our position which is 1.5 BTC.

Keep in mind that the trading fee is calculated with the leverage that will be fixed at the time of closure of a position. If, for instance, you open a position with 5x leverage, and then add 3 same-directional orders with different leverages, then the trading fee will be calculated on the basis of the average leverage that will be at the time of closing the position.

The trading fees are not displayed in “Unrealised PnL” or “Realised PnL”. After closure a position, the final result will be displayed in the order history in “Settlement Amount” column.

In order to calculate the settlement amount, use the following formula:

Settlement Amount = Order amount + PNL – Fee

The Fee (%) and PnL (%) values are calculated at the moment of closing the position and do not depend on each other. The Fee (%) and PnL (%) calculation is made exclusively from the value of “Order Amount”.

For example, consider our position, already used earlier, with a volume of 1.5 BTC and with 75x leverage, which was closed, suppose with a result of PnL% = 65%. The trading fee, as we already calculated, is 11.25%:

Settlement Amount = Order Amount + PnL% – Fee%

Settlement Amount = 1.5 BTC + 65% – 11.25%

Settlement Amount = 1.5 BTC + 0.975 BTC (65% of 1.5 BTC) – 0.16875 BTC (11.25% of 1.5 BTC)

Settlement Amount = 2.30625 BTC – this is the amount that will return to our balance after closing this position. If we want to know our net profit / loss from this position, then we can calculate it as follows:

Net Profit / Loss = PnL (%) – Fee (%) = 65% – 11.25% = 53.75% of the position volume at 1.5 BTC, which is 0.80625 BTC.

All formulas are the same for all cryptocurrencies that presented on our platform, but for each, it’s own trading fee size, which you can see on our website.

Below you can see the total size of the trading fee for each cryptocurrency, with a different level of the leverage.

LeverageBTC (0.075%)ETH (0.151%)LTC (0.193%)XRP (0.195%)
10.150%0.302%0.386%0.390%
30.450%0.906%1.158%1.170%
50.750%1.150%1.930%1.950%
101.500%3.020%3.860%3.900%
152.250%4.530%5.790%5.850%
203.000%6.040%7.720%7.800%
253.750%7.550%9.650%9.750%
304.500%9.060%11.580%11.700%
406.000%12.080%15.440%
507.500%15.100%
7511.250%
10015.000%

Site: https://bitseven.com
Facebook: https://www.facebook.com/BitSeven7
Twitter: https://twitter.com/BitsevenTrading
Telegram channel: https://t.me/bitseven_channel
Telegram Chat: https://t.me/bitseven7
YouTube: https://www.youtube.com/c/BitsevenLeverageTrading
Reddit: https://www.reddit.com/user/Bitseven_trading

✅ Earn up to 30% commission every time people you refer make a trade on BitSeven – https://partner.bitseven.com