Which one is more cost-effective between the mid-limit unit price and the market unit price handling fee in currency circle contract transactions?

In currency contract trading, the handling fee for limit orders is usually more cost-effective than market orders. From the perspective of handling rates, the handling rates for limit orders are mostly around 0.02%, while those for market orders are around 0.05%. From the perspective of trading scenarios, limit orders are more suitable for investors who have clear expectations for prices and pursue low handling fees, while market orders are suitable for investors who are eager to complete a transaction and have low price sensitivity. From a risk control perspective, limit orders can control transaction costs and risks to a certain extent, while market orders may experience slippage, increasing transaction costs and risks.

Generally, the handling fee for limit orders in currency contract transactions is usually more cost-effective than market orders. The following is a specific analysis:

Handling rate angle

• Limit order: The handling rate for limit orders on most exchanges is around 0.02%, such as Binance, OKX, etc.
• Market order: Usually the handling fee is around 0.05%. For example, Binance’s taker fee is 0.05%, and Huobi Exchange’s taker fee is 0.05%. , the order handling fee for ordinary users of Ouyi is 0.03%-0.05%.

Trading scene angle

• Limit order: If investors have clear expectations for the price, the set price limit is reasonable and can be completed, then the limit order is not only You can conduct transactions at the expected price and save on handling fees. For example, if an investor expects the price of Bitcoin to fluctuate within a certain range, by setting a limit order, he or she can buy or sell at the ideal price while enjoying a lower handling fee.
• Market Order: When market conditions change rapidly, investors are eager to complete transactions and are less sensitive to prices. At this time, using market orders can quickly complete transactions, but they need to bear higher costs. Handling fee costs. For example, when major good or bad news breaks out in the market, investors may choose market orders in order to open or close positions as quickly as possible, but the handling fees will be relatively high.

Risk control perspective

• Limit order: Transaction costs and risks can be controlled to a certain extent. Because the transaction will only be completed when the market price reaches or is better than the limit price, investors can set the limit price according to their risk tolerance and expected returns to avoid unnecessary losses and high procedures caused by large fluctuations in market prices. fee.
• Market order: Since the transaction is executed immediately according to the current market price, slippage may occur when the market fluctuates greatly, causing the transaction price to deviate from expectations, which not only increases transaction costs, but also May expose investors to greater risks

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