Which one has higher fees, Bitcoin leverage or contracts?

Contract trading fees are generally higher than leverage trading, mainly because contract trading involves more transaction fee types and wider spreads.

Comparison of Bitcoin leverage and contract fees

Bitcoin leverage and contract trading are both leverage trading tools, but their The handling fees vary greatly.

Leverage transaction fee

• Funding rate: Leveraged transactions will be settled based on the funding rate, which is based on the position direction and market supply and demand. If the position direction is consistent with market supply and demand, you need to pay a funding fee; if the position direction is inconsistent with market supply and demand, you can charge funding fees.
• Spread: Leveraged trading usually includes spread, which refers to the difference between the buying and selling price. Spreads are set by the exchange based on market liquidity and supply and demand.

Contract transaction fee

• Maker fee: When a contract trader takes the initiative to place an order, he needs to pay the Maker fee . Maker fees are generally lower because it provides liquidity to the trading market.
• Taker fee: When a contract trader passively completes other people's orders, he needs to pay Taker fee. Taker fees are typically higher because they drain liquidity from the trading market.
• Transaction fee: Some exchanges charge a fixed transaction fee, regardless of whether the trader is a Maker or a Taker.

Which fee is higher?

Generally speaking, the handling fees for contract transactions are higher than the handling fees for leveraged trading. This is because contract trading involves a greater variety of transaction fees and the spreads are wider.

In general, the difference in Bitcoin leverage and contract fees depends on the exchange, trading direction, market supply and demand, and other factors. However, as a general rule, contract trading charges are higher.

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