Phemex supports placing orders by order cost. Order cost is the total margin required to open a position. In the order zone, traders can click USDT, and enter the custom amount they want to invest.
Calculation
The order cost entered by traders will be used to calculate the initial margin required, as well as the taker fees for opening and closing positions.
Depending on whether your position is long or short, the formulas used to calculate the order cost will be different.
Long Positions(USDT-M)
Order Cost = Initial Margin + Fee to Open Position + Fee to Close Position
Initial Margin = (Order Price × Order Quantity) / Leverage
Fee to Open Position = Order Quantity × Order Price × Taker Fee Rate
Fee to Close Position = Order Quantity × Bankruptcy Price × Taker Fee Rate
Bankruptcy Price for Long Position = Order Price × {1 - (Initial Margin rate/100)}
Example:
Trader A opens a long position of 1 BTC at 70,000 USDT with 10x leverage.
The order cost is calculated as follows:
Initial Margin = (70,000 × 1 ) / 10 = 7,000 USDT
Fee to Open Position = 1 × 70,000 × 0.055% = 38.5USDT
Fee to Close Position = 1 × 70,000 ×{1 - (10/100)}× 0.055% =34.65USDT
In this case, order cost = 7,000 + 38.5 + 34.65 = 7073.15 USDT
Traders who place orders by order cost can calculate the corresponding order quantity according to the following calculation.
Revisiting Trader A’s case:
Order Quantity
= Order Cost × Leverage / [Order Price × (2-way taker fee × Leverage + 0.99945)]
= 7073.15 × 10 / [70,000 × (0.0011 × 10 + 0.99945)]
= 1 BTC
Short Positions(USDT-M)
Order Cost = Initial Margin + Fee to Open Position + Fee to Close Position
Initial Margin = (Order Price × Order Quantity) / Leverage
Fee to Open Position = Order Quantity × Order Price × Taker Fee Rate
Fee to Close Position = Order Quantity × Bankruptcy Price × Taker Fee Rate
Bankruptcy Price for Short Position = Order Price × {1 + (Initial Margin rate/100)}
Example:
Trader B opens a short position of 1 BTC at 75,000 USDT with 5x leverage.
The order cost is calculated as follows:
Initial Margin = (75,000 × 1) / 5 = 15,000 USDT
Fee to Open Position = 1 × 75,000 × 0.055% = 41.25 USDT
Fee to Close Position = 1 × 75,000 × {1 + (20/100)}× 0.055%= 49.5USDT
In this case, order cost = 15,000 + 41.25 + 49.5 = 15,090.75 USDT
Traders who place orders by order cost can calculate the corresponding order quantity according to the following calculation.
Revisiting Trader B’s case:
Order Quantity
= Order Cost × Leverage / [Order Price × (2-way taker fee × Leverage + 1.0006)
= 15090.75 × 5 / [75,000 × (0.0011 × 5 + 1.00055)]
= 1 BTC
*The Order cost (Initial Margin + Two-Way Taker Fee) required has to be smaller than or equal to the available balance in order to place the order successfully.
