How to Calculate Binance Futures Fees? Detailed Fee Structure Explained

Introduction

Binance is one of the world's top three cryptocurrency exchanges, offering futures trading with competitive fees. Understanding Binance's fee structure is essential for traders to optimize costs and profitability. This guide breaks down the calculation methods, specific fee rates, and trading strategies for Binance futures.

How Binance Futures Fees Are Calculated

1. Funding Fee Formula for Perpetual Contracts

Binance uses the following formula to calculate funding fees:

Settlement Amount = Position Nominal Value × Funding Rate

Where:

• Position Nominal Value = Mark Price × Contract Quantity Held
• Funding Rate comprises two components: Interest Rate and Premium Index.

Key Components:

• Interest Rate (I): Default rate is 0.03% daily (0.01% per funding interval). Exceptions:

  • LINK/USDT, LTC/USDT, and BNB/USDT perpetual contracts have 0% interest.
• Premium Index (P): Ensures contract prices align with spot prices during volatility.

Premium Index Formula:

P = [Max(0, Impact Bid Price − Mark Price) − Max(0, Mark Price − Impact Ask Price)] / Spot Price  

• Impact Bid/Ask Price: Prices at which a 4,000 USDT order would execute.
• Updated every second and averaged over the funding interval.

Final Funding Rate (F):

F = P + Clamp(0.01% − P, −0.05% to 0.05%)  

• If (I − P) is within ±0.05%, F = I (funding rate equals the interest rate).

2. Binance Futures Fee Rates

Binance charges maker-taker fees based on trade type:

| Trade Type | Fee Rate (Standard) | Fee Rate (VIP 0-9) |
|------------|---------------------|--------------------|
| Maker | 0.02% | 0.016%–0% |
| Taker | 0.04% | 0.035%–0% |

👉 Compare Binance fees with other platforms

Note:

• Maker orders add liquidity (limit orders not immediately filled).
• Taker orders remove liquidity (market orders).

How to Trade Binance Futures: Step-by-Step

1. Log in to Binance and navigate to Futures Trading → USDⓈ-M Contracts.

2. Select Position Mode:

   • One-way: Positions in the same asset/net direction.
   • Hedge Mode: Multiple long/short positions per asset.
3. Adjust Leverage: 1×–125× (higher leverage = higher risk).

4. Set Margin Type:

   • Isolated Margin: Limits risk to allocated funds.
   • Cross Margin: Uses entire account balance as collateral.

Pro Tip:

• Analyze 1-hour+ charts for trend confirmation. Avoid scalping unless actively monitoring markets.

FAQ

Q1: Does Binance charge fees for canceled orders?

A: No. Fees apply only to executed trades.

Q2: How often are funding fees paid/received?

A: Every 8 hours (00:00, 08:00, 16:00 UTC).

👉 Learn advanced trading strategies

Q3: Can I reduce Binance futures fees?

A: Yes! Hold BNB to pay fees at a 25% discount or achieve VIP tiers via trading volume.

Q4: Why is my funding fee negative?

A: Negative rates mean shorts pay longs (common in bearish markets).

Key Takeaways

• Binance fees range from 0.02% to 0.04% (lower for makers/VIPs).
• Funding rates depend on premium index + interest rate.
• Optimize costs with BNB discounts, VIP tiers, and limit orders.

For real-time fee updates, visit Binance’s official fee page.