Recently, a friend asked me about the costs associated with perpetual contracts, so I’ll organize my understanding here.

The main costs for perpetual contracts are twofold: trading fees and funding rates. Many beginners tend to overlook these costs, but when you add them up, they can be quite significant.

First, let's talk about trading fees. Most mainstream platforms follow this standard: maker fees are 0.02%, and taker fees are 0.05%. Simply put, placing an order at your specified price is a maker order, while executing immediately at the market price is a taker order. Stop-loss and take-profit orders are also considered orders, unless you execute at the current market price directly.

How are contract trading fees calculated? It’s the position value multiplied by the fee rate. For example, if you use $600 as margin to open a 100x leverage position (though I don’t recommend doing this), your position size would be $60,000. If you calculate the fee at the taker rate, it’s $60,000 × 0.05% = $30. Closing the position also incurs a fee; if you close at the current market price as a taker, it’s another $30. If you place a limit order to close, it’s cheaper—only about $12. So, over a complete contract trade, the trading fees could range from $24 to $60, depending on your trading style. For long-term trading, these accumulated contract fees can become a significant expense.

Next is the funding rate, which is quite interesting. It’s not fixed but varies based on the market’s long-short ratio. The purpose of the funding rate is to balance the market’s bullish and bearish forces. The calculation is straightforward: position value multiplied by the funding rate.

When the funding rate is positive, long positions pay money, and short positions earn. Conversely, if it’s negative, the opposite occurs. Funding payments are settled three times a day at 00:00, 08:00, and 16:00. Only positions held at these times will be subject to funding payments or receipts.

So, in summary, besides the explicit trading fees, the funding rate is a variable cost, especially in highly one-sided markets. To control costs, you need to put effort into your trading strategies.