Learning path Bronze Understand and protect

Commissions

Explicit per-transaction cost — maker/taker model; often calculated on notional, not margin.

Who it's for — Scalpers and high-turnover day traders: fees are constant headwind — include in breakeven and expectancy.

Commissions (trading fees) are the explicit cost charged by exchange/broker per execution. Crypto mostly uses maker / taker model.

In simple terms — Target +$10, entry+exit fees $2: you need at least +$2 just to break even before counting the trade.

MAKER (Limit Order) 0.02% TAKER (Market Order) 0.05%
Maker (limit on book) vs taker (market consuming liquidity).

Maker vs taker

Type Order Fee
Maker Low or zero; sometimes rebate
Taker Higher

Leverage and notional

Fees apply to notional value traded (notional value), not margin. 10× leverage = fees on 10× exposure — round-trip entry+exit erodes real margin fast.

Common mistake — High-leverage overtrading ignoring round-trip fees: negative theoretical edge.

Summary

  • Total trade costs: spread + slippage + commissions + funding (if held overnight).
  • Breakeven: target must cover all costs.

Bronze path — Costs module. Next: Funding rate. Index: Bronze path.