Many people lose money trading perpetual contracts. Actually, it's not just about wrong market predictions; hidden trading costs are also quietly cutting into your profits. Today, let's talk about the fee structure of perpetual contracts, especially the contract trading fees.

First, the most straightforward one—trading fees. These are divided into maker and taker fees. Maker fees are 0.02%, and taker fees are 0.05%. Many beginners think that take-profit and stop-loss orders don't incur fees, but as long as you're not trading at the current market price, it's calculated as a maker order. Simply put, manually entering a price is a maker order, while executing a market order is a taker.

How are contract trading fees calculated? The formula is simple: position value multiplied by the fee rate. For example, with a $600 capital using 100x leverage, the position value becomes $60,000. If you open a position as a taker order, the fee is $60,000 × 0.05% = $30. When closing the position, you'll pay again—$30 for a market close, or $12 if closing with a limit order. Over a complete trading cycle, the total contract fees can range from $24 to $60. It doesn't seem like much, but over the long term, these costs can add up significantly.

Besides trading fees, there's another hidden cost called the funding rate. This is the real invisible expense. The funding rate isn't fixed; it varies dynamically based on the market's long-short ratio. Its main purpose is to balance the long and short forces. The calculation is position value multiplied by the funding rate.

When the funding rate is positive, long positions pay fees, and short positions earn. Conversely, when the funding rate is negative, long positions earn, and short positions pay. Funding is settled three times a day—at 00:00, 08:00, and 16:00—and fees are only deducted or credited at these times.

So, trading perpetual contracts requires not only market analysis but also careful consideration of these hidden costs. Especially with high leverage, the combined effect of trading fees and funding rates can quickly erode your profits.