Curious about how to make the most of Bitazza’s new Derivatives Trading feature? Whether you’re eyeing futures, perpetuals, or exploring leverage for the first time, there’s more to successful trading than just predicting price moves. One crucial piece many traders overlook? Fees.

Hidden costs, funding rates, and trading commissions can quickly add up and impact your overall results. Understanding exactly how derivatives fees work is key to trading with confidence, managing your risk, and getting the most out of every move. Here’s what you need to know to navigate Bitazza’s derivatives platform like a pro—no surprises, just smarter trading.

What Are Derivatives Fees?

When you trade crypto derivatives (like futures or perpetual contracts), you’re essentially making agreements based on the price of assets—without actually owning the underlying crypto. But, just like with any trading platform or financial product, there are fees involved. Some are easy to spot; others not so much.

Derivatives fees are charges you pay for opening, maintaining, or closing your positions. They cover everything from basic transaction costs to extra charges that come from how the market works.

Types of Derivatives Fees (and Where They Hide)

Let’s break down the main fees you’ll encounter:

1. Funding Rates

• For perpetual futures contracts, the price of the contract is kept in line with the spot market using something called a funding rate.
• This rate is paid between traders: sometimes you pay it, sometimes you receive it, depending on the direction of your position and the market.

• Not strictly “derivatives fees,” but don’t forget you’ll pay a fee when you withdraw crypto from the platform.

The Hidden Costs: Not Just the Obvious Ones

Some fees don’t appear on the main fee schedule but can still impact your bottom line. Watch out for:

• Spreads: The difference between the buy (ask) and sell (bid) price. In volatile markets, spreads can widen, making trades more expensive.
• Slippage: If the market moves quickly, your order might not get filled at the price you expect.
• Volatility-Driven Costs: Highly volatile markets may mean higher fees or larger price movements that affect your position.

Why Fees Matter

Fees aren’t just a minor detail—they can have a big impact on your overall trading results. Even if you’re right about the market direction, high fees can eat into your gains (or make small wins disappear). Keeping your costs under control means you’re more likely to see the benefits of good decisions and sound strategy.

Tips to Minimize Derivatives Fees (and Trade Smarter)

Nobody likes to pay more than they have to. Here’s how to keep your trading costs in check:

• Use Limit Orders When Possible
  
• Keep an Eye on Funding Rates

If you’re holding positions for longer periods, funding payments can add up. Plan your trades around these cycles when possible.

• Don’t Over-Leverage
• Check Fee Schedules Regularly

Fees can change, always check the latest rates on Bitazza before you trade.

• Monitor Market Conditions

Wider spreads and high slippage often happen in volatile markets. Trade during times of healthy liquidity for better rates.

Derivatives trading opens up a world of opportunities but only if you understand the full picture, fees included. Being fee-savvy helps you stay one step ahead, manage risk, and make the most of every trade.

Ready to Trade Derivatives on Bitazza? Download the Bitazza app