Within the order zone, traders may observe that, for the same contract quantity, the order cost can vary between Buy Long and Sell Short directions. Please see the below calculation formula and examples to understand it better.
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
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
