Perpetual contracts have become one of the most popular financial instruments in both cryptocurrency and traditional markets. Offering leveraged exposure without an expiry date, they allow traders to go long or short on assets with flexibility. However, alongside the potential for amplified gains comes a critical cost factor: fees. Understanding how perpetual contract fees work—particularly opening fees and funding rates—is essential for any trader aiming to optimize profitability.
This comprehensive guide breaks down the structure of perpetual contract fees, explains how to calculate them accurately, compares fee models across major platforms, and shares practical strategies to reduce trading costs—all while aligning with real-world trading behavior and search intent.
Understanding the Components of Perpetual Contract Fees
Perpetual contract fees are typically divided into two main categories: opening (or trading) fees and funding fees (also known as funding rates). These costs directly impact net returns and should be factored into every trading decision.
Opening Fees: The Cost of Entering a Trade
An opening fee is charged when you open a new position—whether long or short. It's usually a percentage of the total notional value of the trade.
- How it’s calculated:
If the opening fee rate is 0.1% and you open a $50,000 position, your fee would be:$50,000 × 0.1% = $50 - Leverage doesn’t reduce fees:
Even if you use 10x leverage and only post $5,000 as margin, the fee is still based on the full $50,000 contract value.
Most exchanges apply the same fee rate for both makers (limit orders that add liquidity) and takers (market orders that remove liquidity), though some offer maker rebates to incentivize order book depth.
👉 Discover how low-fee trading can boost your long-term returns
Funding Rates: The Hidden Cost of Holding Positions
Funding rates are periodic payments exchanged between long and short positions to keep the perpetual contract price aligned with the underlying asset’s spot price.
- Settlement frequency: Typically every 8 hours (e.g., at UTC 00:00, 08:00, 16:00).
Who pays whom?
- When longs pay shorts: Bullish market sentiment; more buyers than sellers.
- When shorts pay longs: Bearish sentiment; more sellers than buyers.
Example Calculation:
If the funding rate is 0.01% and you hold a $10,000 long position, you’ll pay: $10,000 × 0.01% = $1 every 8 hours.
Holding a position through multiple funding intervals can accumulate significant costs—or generate income if you're on the receiving end.
How Perpetual Contract Fee Rates Are Calculated
While specific formulas vary by platform, the core principles remain consistent across exchanges.
1. Opening Fee Formula
Opening Fee = Notional Value × Fee RateWhere:
- Notional Value = Entry Price × Number of Contracts
- Fee Rate = Set by exchange (e.g., 0.1%)
Example:
- Trade size: 1 BTC at $60,000
- Fee rate: 0.1%
- Opening fee:
60,000 × 0.1% = $60
👉 See how small fee differences add up over time
2. Funding Rate Mechanics
The funding rate is generally composed of two elements:
- Interest Rate Component: Often negligible in crypto (e.g., 0.01% annualized)
- Premium Index: Reflects the difference between perpetual contract price and spot price
Exchanges combine these into a final funding rate, which adjusts every funding interval. Traders only pay or receive funds if they hold a position at the settlement moment.
Comparing Perpetual Contract Fees Across Major Platforms
Different exchanges adopt varying fee structures. Here's how some top platforms compare:
Binance
- Opening fee: 0.1% taker / 0.02% maker
- Funding rate: Every 8 hours
- VIP tiers: Up to 25% discount based on volume or BNB holdings
- BNB discount: 25% off fees when paying with BNB
BitMEX
- Opening fee: 0.075% taker / -0.025% maker (rebate)
- Funding rate: Every 8 hours
- Known for aggressive maker incentives to boost liquidity
OKX (formerly OKEx)
- Opening fee: 0.1% taker / 0.02% maker
- Funding rate: Every 8 hours
- Offers tiered discounts via OKB holdings or trading volume
While nominal rates may seem similar, frequent traders benefit significantly from maker rebates and native token discounts.
Strategies to Reduce Perpetual Contract Trading Fees
Minimizing fees isn’t about cutting corners—it’s about smart execution and platform selection.
1. Increase Trading Volume for VIP Discounts
Most exchanges offer tiered fee structures:
- Higher trading volume → lower fees
- Some require holding platform tokens (like OKB or BNB)
For active traders, reaching VIP level 5+ can reduce taker fees by up to 40%.
2. Use Limit Orders to Become a Maker
Placing limit orders instead of market orders often qualifies you as a maker, who adds liquidity and enjoys lower fees—or even rebates.
Tip: Combine high-frequency strategies with maker orders to earn passive fee income.
3. Pay Fees with Native Exchange Tokens
Using platform-specific tokens (e.g., BNB, OKB) frequently unlocks:
- 20–25% fee discounts
- Staking rewards
- Access to exclusive events
Just ensure you understand the token’s volatility and utility before relying on it.
4. Time Entries Around Funding Settlements
To avoid paying funding:
- Open long positions when shorts fund longs (negative rate)
- Avoid holding through positive funding intervals if you’re long
Some traders scalp positions just before funding timestamps to minimize exposure.
Frequently Asked Questions (FAQ)
Q: Do perpetual contract fees change over time?
A: Yes. While opening fees are generally fixed per user tier, funding rates adjust every 8 hours based on market demand and price divergence from spot.
Q: Are fees higher with higher leverage?
A: No. Leverage affects margin requirements but not fee calculations—the fee is always based on total position value, regardless of leverage used.
Q: Who sets the funding rate?
A: Exchanges calculate it algorithmically using spot vs. contract price gaps and interest differentials. It’s not manually controlled.
Q: Can I earn money from funding rates?
A: Yes. If you hold a short position during periods when longs fund shorts, you receive payments automatically.
Q: What happens if I close my position before funding time?
A: You won’t pay or receive that cycle’s funding fee—perfect for avoiding unexpected costs.
Q: Are there zero-fee perpetual contracts?
A: Not on reputable platforms. However, some decentralized exchanges offer temporary promotions or lower fees via governance tokens.
Final Thoughts: Mastering Costs for Better Returns
Perpetual contracts offer powerful tools for speculation and hedging—but success hinges on managing costs effectively. Opening fees may seem small, but compounded over hundreds of trades, even a 0.02% difference can cost thousands. Meanwhile, funding rates can turn profitable trades unprofitable if ignored.
By choosing the right platform, optimizing order types, leveraging token discounts, and timing entries strategically, traders can significantly reduce their effective fee burden.
👉 Start optimizing your trading costs today—see how low fees can improve your edge