Understand the components of Bitliv options fees, including trading fees and exercise fees. Master the calculation methods to trade options more effectively.
Options trading fees consist of transaction fees and exercise fees.
Transaction Fees
- Transaction fees are charged upon opening or closing a position.
- The transaction fee for each trade is calculated based on the index price at the time of order execution ( capped at 10% of the option premium ).
- Transaction Fee Rate: 0.02%
- Formula: Min[ Transaction Fee Rate * Index Price * Option Unit , 10% * Option Premium ] * Number of Option Contracts Traded
Example:
User A made the following transaction:
- Trading Product: ETHUSDT Call Option
- Underlying Asset: ETH
- Strike Price: 2,000 USDT
- Quantity: 3 Option Contracts
- Expiration Date: April 30, 2022
- Premium: 1000 USDT
User A purchased 3 call option contracts for 1000 USDT, with a strike price of 2000 USDT based on the ETH index price.
In this example, the Transaction Fee = Min ( 0.02% * 2,000 , 10% * 1,000 ) * 3 = 1.2 USDT
Exercise Fees
- Exercise fees are charged when exercising an option.
- The exercise fee for each trade is calculated based on the settlement price at the time of order completion ( also capped at 10% of the option value ).
- Exercise Fee Rate: 0.015%
- Formula:
- Call/Put Option Exercise Fee = Min [ 0.015% * Settlement Price * Unit , 10% * Option Profit ] * Position
Example:
Continuing with User A's example:
- Trading Product: ETHUSDT Call Option
- Underlying Asset: ETH
- Strike Price: 2,000 USDT
- Trading Quantity: 3 Option Contracts
- Expiration Date: April 30, 2022
- Settlement Price: 2,200 USDT
- Premium: 200 USDT
In this example, the Exercise Fee = Min [ 0.015% * 2,200 , 10% * ( 2,200−2,000 ) ] * 3 = 0.99 USDT
Key Summary:
- Transaction fees are incurred when you open or close a position.
- Exercise fees are incurred when you actually exercise an option.
- Both fees have a maximum limit, which is 10% of the option premium or option profit.
- It is very important that users understand how both fees are calculated, to help them with options trading.
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