If you’ve ever wondered, “How much are the trading fees on Delta Exchange?” – then you’re in the right place. Today, we’re going to detail everything you need to know about trading fees on Delta Exchange, whether you’re trading futures or options. By the end of this article, you’ll have a clear understanding of how fees work, how they’re calculated, and how to make the most of your trades. So, let’s get started!
First Things First: What is Delta Exchange?
Delta Exchange is a crypto derivatives trading platform, which means it specialize in futures and options trading for cryptocurrencies. Unlike spot trading (where you buy and sell actual crypto), derivatives allow you to speculate on price movements without owning the underlying asset. This opens up a world of opportunities, but it also has its own rules – especially when it comes to fees.
The Good News: No Deposit or Withdrawal Fees
Before we discuss trading fees, let’s make one important point clear: Delta Exchange does not charge any fees for deposits or withdrawals. That’s right – whether you’re depositing funds into your account or cashing out your profits, you won’t have to pay a single penny in additional fees. This is a huge benefit, especially for active traders who move funds frequently.
Understanding Trading Fees: Makers vs. Takers
Now, let’s talk about trading fees. On Delta Exchange, the fees depend on whether you are a maker or a taker. Here’s what it means:
- Taker: A taker is a person who places a market order, which means he accepts the current market price. These orders are executed immediately and “take” liquidity from the market. For example, if you buy Bitcoin futures at the current market price, you are a taker.
- Maker: A maker is a person who places a limit order, which means he sets a specific price at which he wants to buy or sell. These orders add liquidity to the market because they are not executed immediately – they wait in the order book until someone matches their price. For example, if you place a limit order to buy Bitcoin futures at $70,000 when the current price is $71,000, you are a maker.
Why does this matter? Because makers and takers pay different fees. On Delta Exchange:
for more information check this : DELTA EXCHANGE FEES
- Futures Trading Fees:
- Takers pay 0.05% of the notional value.
- Makers pay 0.02% of the notional value.
- Options Trading Fees:
- Both makers and takers pay 0.03% of the notional value or 10% of the premium, whichever is lower.
What is Notional Value?
Notional value is the total value of your trading position. It’s calculated as:
Number of Contracts × Lot Size × Index Price
For example, if you’re trading Bitcoin futures and the current price is $70,000, and you buy 1,000 contracts with a lot size of 0.001, your notional value would be:
1,000 × 0.001 × $70,000 = $70,000
Your trading fee would then be calculated based on this notional value. For instance, if you’re a maker, you’d pay 0.02% of $70,000, which is $14.
Liquidation Fees: What You Need to Know
Liquidation occurs when your position is automatically closed because your losses reach a certain limit. When this happens, Delta Exchange charges a liquidation fee, which is calculated as:
Liquidation Factor × Balance
For example, if your balance after liquidation is $80 and the liquidation factor is 0.5%, you will have to pay $40 as a liquidation fee. Additionally, 18% GST is applicable, making the total fee $47.20. This means your final balance will be $32.80.
How to Use the Trading Fee Calculator
Delta Exchange makes it easy to calculate your fees with a built-in trading fee calculator. Here’s how it works:
- Go to the trading fees page on Delta Exchange.
- Select either futures or options.
- Enter your entry price, exit price, and quantity.
- Choose whether you’re a maker or taker.
- The calculator will show your trading fee, including GST.
for more information check this : TRADING FEE CALCULATOR
For example, if you’re trading Bitcoin futures as a maker with an entry price of $30,000 and an exit price of $31,000, the calculator will show your exact fee based on your notional value.
Options Trading Fees: A Quick Example
Let’s say you’re trading Bitcoin options:
- The current price of Bitcoin is $70,000.
- You buy 1,000 contracts with a lot size of 0.001.
- Your notional value is $70,000.
- Your premium is $100.
Your trading fee would be the lower of:
- 0.03% of $70,000 = $21
- 10% of $100 = $10
So, you’d pay $10 plus 18% GST, bringing the total to $11.80.
Pro Tip: Avoid Liquidation Fees
The best way to avoid liquidation fees is to manage your risk carefully. Use stop-loss orders, monitor your margin levels, and avoid over-leveraging your trades. Remember, liquidation fees can eat into your profits, so it’s always better to play it safe.
Final Thoughts
Understanding trading fees is vital to maximizing your profits on Delta Exchange. Whether you’re a maker or a taker, knowing how fees are calculated can help you make better trading decisions. And with a tool like the trading fee calculator, it’s easier than ever to plan your trades and keep track of your costs.
So, the next time you log into Delta Exchange, take a moment to review your fees and make sure you’re trading efficiently. And if you have any questions, don’t hesitate to contact us—we’re here to help!
Delta Exchange Trading Fees FAQ
- What fees does Delta Exchange charge for deposits and withdrawals?
- Delta Exchange does not charge any fees for depositing or withdrawing funds from your account.
- What are the trading fees for futures contracts on Delta Exchange?
- The trading fees for futures contracts depend on whether you act as a maker or a taker. Takers pay 0.05% of the notional value, while makers pay 0.02% of the notional value.
- How are maker and taker defined in the context of Delta Exchange?
- A taker is a trader who executes orders at the current market price, removing liquidity from the order book (e.g., using a market order). A maker is a trader who places limit orders that are not immediately filled, adding liquidity to the order book.
- What is the liquidation factor, and how does it affect trading fees?
- The liquidation factor comes into play when an exchange liquidates a trader’s position due to insufficient margin. A liquidation fee is applied to the remaining balance after liquidation. It is calculated by applying the liquidation factor (0.5) to the remaining balance and then adding 18% GST. Note that at the time of liquidation, only the liquidation fee is charged and there is no other trading fee.
- How is the notional value of a futures contract calculated?
- The notional value is calculated by multiplying the number of contracts by the lot size and the index price. For example, if one lot of BTC has 1000 contracts, the notional value formula will be: number of contracts * lot size * index price
- How are trading fees calculated for options contracts on Delta Exchange?
- For options contracts, the trading fee is the lesser of 0.03% of the notional value or 10% of the premium, plus 18% GST.
- How do I calculate trading fees using the Delta Exchange calculator?
- Delta Exchange offers a trading fee calculator on their platform. You can select the specific contract (futures or options), enter the entry and exit prices, quantity, and indicate whether you acted as a maker or taker. The calculator will then display the trading fee, including GST.
- What happens if I let an out-of-the-money options contract expire without exercising it?
- If you do not exercise an out-of-the-money options contract before expiry, you will not be charged any trading fees.