Understanding Order Cost in Perpetual and Delivery Contracts

What is Order Cost?

Order cost refers to the total funds required to place an order. Traders can view this in real-time via the order confirmation window. It's influenced by factors like position value, leverage, and fees—encompassing initial margin, opening fees, and closing fees.

Order Cost Across Contract Types

• USDT/USDC Contracts: Denominated in USDT or USDC respectively.
• Inverse Contracts: Settled in the underlying crypto (e.g., BTC for BTCUSD contracts).

Under the Unified Trading Account (UTA), collateral assets can cover initial margins, but opening/closing fees must be paid in the settlement asset. Insufficient funds trigger auto-borrowing—learn more in 👉 Borrowing & Repayment Guide.

Order Cost Formulas

USDT/USDC Contracts

Order Cost = Initial Margin + Opening Fee + Closing Fee
- Initial Margin = (Contract Qty × Order Price) / Leverage
- Opening Fee = Contract Qty × Order Price × Taker Rate
- Closing Fee (Buy) = Contract Qty × Order Price × [1 - 1/Leverage] × Taker Rate
- Closing Fee (Sell) = Contract Qty × Order Price × [1 + 1/Leverage] × Taker Rate

Inverse Contracts

Order Cost = Initial Margin + Opening Fee + Closing Fee
- Initial Margin = (Contract Qty / Order Price) / Leverage
- Opening Fee = (Contract Qty / Order Price) × Taker Rate
- Closing Fee (Buy) = (Contract Qty / Order Price) × [1 + 1/Leverage] × Taker Rate
- Closing Fee (Sell) = (Contract Qty / Order Price) × [1 - 1/Leverage] × Taker Rate

Note: Actual fees vary by order type, execution price, and 👉 VIP Tier.

Calculation Examples

USDT/USDC Contract

Scenario: 1 BTC long on BTCUSDT at 50,000 USDT, 10x leverage, 0.055% taker fee.

Initial Margin: 5,000 USDT  
Opening Fee: 27.5 USDT  
Closing Fee: 24.75 USDT  
Total Order Cost: 5,052.25 USDT  

Inverse Contract

Scenario: 10,000 USD ETHUSD long at 2,000 USD, 25x leverage, 0.055% taker fee.

Initial Margin: 0.2 ETH  
Opening Fee: 0.00275 ETH  
Closing Fee: 0.00286 ETH  
Total Order Cost: 0.20561 ETH  

Order Placement Methods

By Quantity

Default method—input contract units (USD for inverse, crypto for USDT/USDC pairs).

By Cost

Specify total expenditure; system calculates contract quantity. Available only in bidirectional mode.

By Position Value

Enter desired position value (in crypto/USDT/USDC); system derives order size.

FAQs

Q: Can I use non-settlement assets for fees?
A: No—opening/closing fees must be paid in the contract's settlement asset.

Q: How does UTA simplify margin management?
A: It pools collateral assets to cover initial margins across positions.

Q: Why do closing fees differ between buy/sell orders?
A: Fees account for leverage impact on position liquidation prices.

Q: Where can I check minimum order requirements?
A: Refer to exchange 👉 transaction parameters.

Q: Are order costs fixed after placement?
A: No—they adjust with market price movements until execution.