A question about taker/maker fees
Hello I got a question that popped into my mind all of a sudden after 1 year almost full day trading…The 0.1 average taker and maker fee is a fee subtracted by the amount of gain you’re earning after having openened a position, or is it subtracted in advance just because you opened a position same as it happens in forex trading and you have to recover that 0.1% before being in profit?(This can be in spot or margin, sice I know that futures are higher spreads).
Let me do an example: you invest 100.Do you pay the 0.1% fee of 100 of the capital earned? For example, 100+20% gain = 120, then you have subtracted the 0.1% = 119.88 net profit.Or have you subctracted the 0.1% as soon you open a position? For example you invest 100, – 0.1% = 99.9 the real amount you’re investing, that you have to recover. So, +20% gain = 119.88Same when you loss.This indeed affects the strategy. In case I try to invest 100 and earn 3 (+3% gain) should I count 3 earned – 0.1% or should I count 100 – 0.1% + 3% ? To understand better, assuming that I buy and sell at the same price, have I lost 0.1% + 0.1% in advance or have I lost nothing since I haven’t generated neither profits nor losses.
Hope to have been clear… Thank you
You only pay the fee when the trade happens. Obviously if you’re the taker, that is immediately. But if for example you’re the maker and you cancel your trade before it happens the fee is never deducted.