The trading fees on Delta are mainly charged at the Notional Size of the trade
Notional Size = Spot Price * Qty
Spot Price*: click here to know more
Example: Options
Let's assume a trader buys 300 contracts of BTCUSD option at a strike price of $90,000 while BTC is trading at 90,000
1 contract of BTC = 0.001
BTC 300 contracts of BTC = 300 * 0.001 = 0.3 BTC
Hence the notional size = 90,000 * 0.3 = $27,000
Example: Futures
Let's assume a trader buys 300 contracts of BTCUSD futures at a price of $90,000
1 contract of BTC = 0.001
1 BTC 300 contracts of BTC = 300 * 0.001 = 0.3 BTC
Hence the notional size = 90,000 * 0.3 = $27,000
Fees in Options Trading (Options)
Usually the trader will only be paying the Taker/Maker fees while opening or closing a position. This fees remains fixed.
Taker/Maker Fees ( 0.010 % of the Notional Size)
Taker fee is a trading fee charged to traders who "take" liquidity from the order book by executing trades that are immediately matched with existing orders. Maker fee is a trading fee charged to traders who provide liquidity to the order book by placing limit orders that are not immediately matched with existing orders. Click here to know more about taker and maker orders.
Fee Capping feature Advantage (3.5 % of premium)
Delta Exchange offers a fee capping feature where the trading fee is capped at a maximum of 3.5% of the premium on options contracts. This fee capping advantage can benefit traders who deal with Deep OTM options which have low-premium.
Fee Calculation
Let's assume a trader buys 300 contracts of BTCUSD OTM option at a strike price of $90,000 at a premium of $150 while BTC is trading at $90,000
1 contract of BTC = 0.001 BTC 300 contracts of BTC = 300 * 0.001 = 0.3 BTC
Hence the notional size = 90000 * 0.3 = $27,000
Premium Paid = Qty * Premium = 0.3 BTC * $150 = $45
Since, the taker/maker fees is 0.015% the fee would have been 0.010% * $27,000 = $2.7. However, 3.5% of the premium for this trade is 3.5% * $45 = $1.575. Since this is less than $$2.7. , the user will only pay $1.575 as the trading fees.
The premium capping will be eligible only when the taker/maker fees based on the notional size is more than the fees based on the 3.5% premium calculations.
NOTE: The calculation will stay the same even in case of option selling and Additionally, in the case of option selling, if the option expires out-of-the-money (OTM) with zero intrinsic value, no trading fees will be applied on the position, as there is no premium realized at expiry.
Fees in Futures Trading
Usually the trader will only be paying the Taker/Maker fees while opening or closing a position. This fees remains fixed. Unlike options, the maker fees in Futures is 0.01% less than the taker fees. Hence, a user can take advantage of the less maker fees by ensuring he takes a Maker Order.
- Taker Fee: 0.05% of the Notional Size
- Maker Fee: 0.02% of the Notional Size
Fee Calculation
Let's assume a trader buys 300 contracts of BTCUSD futures at a price of $90,000.
1 contract of BTC = 0.001
BTC300 contracts of BTC = 300 * 0.001 = 0.3 BTC
Hence the notional size = 90000 * 0.3 = $27,000
Fees for Taker Order will be 0.05% * 27,000 = $13.5 while the Fees in case it is a Maker Order will be 0.02% * 27,000 = $5.4
The calculation will stay the same even in case of a sell order
Note: An additional 18% GST is applicable on the calculated trading fees for both Options and Futures trades.