Gate. io AMA : Trading Fee Explanation

2021-10-13, 09:50

Q:Today let's go through again about Trading Fees.

A: Here you go.

Q: Please tell me what are Maker and Taker.

1."Maker" is the person who creates the initial BUY or SELL order, which is located on the "Purchase/Sell" ( Orderbook).

2."Taker" is someone who BUY or SELL orders on "Purchase/Sell" ( Orderbook).

A Maker makes the order and a Taker takes the order.

For example, you buy 1 BTC for USD 30,000, after 1 minute someone sells your 1 BTC for USD 30,000, meaning your order has been matched. During the trade, there're the certain fees occur, the fee of the person selling it to you are Fees of Taker, and Maker usually share the fees from Taker.

Q: Please tell me what is this Fee from above example?

A : Somebody call it Maker-Taker fees, also known as payment for order flow, provides liquidity providers with rebates for participating in markets.

From the example above, you can see there're the fees from Taker to Maker.

Q: Now please tell me how to calculate it? I believe this is the point of our USERS are really longing to know.

A: Good question, please see the chart below.

We have total 16 levels of VIP, from level 1-16, Maker fee is the same. From level 11-16, there are different Maker fees according to 30-Day Volume.

Q: Please list out how to calculate trading fees.

A: The deduction of the trading fee is settled from the position margin.

1.The trading fee is calculated based on the position value and has nothing to do with the leverage.

2.The perpetual contract fees of Maker and Taker on Gate.io are differentiated:

Maker: Maker's rebate -0.025%.

When the order placed by the maker is not executed immediately, it will be displayed in 'the depth of the market', which will increase the depth of the market. The user will then receive the maker's reward and have the trading fee returned to the account.

Taker: Taker's fee - 0.075%.

Takers trade initiatively with the placed orders and reduce the existing Maker orders in the market, which reduces the depth of the market. Taker will pay the trading fee at 0.075%, in which 0.025% will be deducted in BTC or USDT from the account, and the other 0.05% will be charged by point card preferentially.

Below chart is the fees for different VIP levels.

The contract trading fee is calculated as follows:

Trading Fee = Position Vale * ( Maker's/ Taker's Rate)

For example:

User A has traded 100USDT with BTC-USDT contract at the market price, and the VIP level of the user is VIP10;

User B has placed an order and traded 100USDT with BTC-USDT contract, and the VIP level of the user is VIP10;

User A has reduced the depth of the market, the trading fee is 0.03% at VIP10, so the trading fee the user has to pay is 100 * 0.03% = 0.03USDT, that the trading fee is 0.03USDT.

The maker order of User B is executed, which has increased the depth of the market. The Maker's rebate is -0.005% at VIP10, that the reward the user will receive is: 100 * (-0.005%) = -0.005USDT, that the trading fee reward is 0.005USDT.

Q: Some users ask if can use GT Point to cover Trading Fees?

A: Sure, it can be

1.Point can be used to cover trading fee at Gate.io exchange; 1 point=1 USDT in trading fee deduction.

2.The real cost of 1 point is less than 1 USDT(about 0.3 USDT/POINT). Using Point can significantly reduce your trading cost.

1).Point can be used to pay trading fee in spot trading and margin trading.

2).Point can be used to pay a part of taker's fee (0.05%) in perpetual contract trading(you have to transfer points to your perpetual contract account first in order to use point to pay taker’s fee).

Q: Please share the links to check Fees and GT points.

Fees

https://www.gate.io/fee

GT Points for Perpetual Contract as shown in the picture below