What Is Order Cost?

Order cost refers to the total amount of funds required to place an order. Users can always view the order cost from the order placement or confirmation window. The order cost is influenced by factors such as the position value, leverage, and fee rate. It includes the initial margin required to open a position, the fee to open the position, and the fee to close the position.

 

 

 

 

Order Cost Across Different Contracts

• USDT and USDC Contracts: For contracts settled in USDT or USDC, the order cost will be paid in USDT or USDC, respectively.

• Inverse Contracts: Settled in the respective coin. For example, BTCUSD or ETHUSD, the order cost will be paid in BTC or ETH, respectively.

 

In Unified Trading Accounts (UTAs), you can use other collateral assets as margin balance, which allows you to have the initial margin for the orders without needing the specific settlement assets. However, the fees to open and close the position must still be paid in the respective settlement assets upon order execution as a realized fee. Auto borrowing will occur if you have insufficient settlement assets. Please refer to the Borrowing, Interest, and Repayment (UTA) article for more details.

 

 

 

 

Order Cost Formulas

USDT and USDC Contracts

Order Cost = Initial Margin + Fee to Open + Fee to Close

• Initial Margin = (Contract Quantity × Order Price) / Leverage

• Fee to Open = Contract Quantity × Order Price × Taker Fee Rate

• Fee to Close (Buy Order) = Contract Quantity × Order Price × [1 − 1 / Leverage] × Taker Fee Rate

• Fee to Close (Sell order) = Contract Quantity × Order Price × [1 + 1 / Leverage]  × Taker Fee Rate

 

Inverse Contracts

Order Cost = Initial Margin + Fee to Open + Fee to Close

• Initial Margin = (Contract Quantity / Order Price) / Leverage

• Fee to Open = (Contract Quantity / Order Price) × Taker Fee Rate

• Fee to Close (Buy Order) = (Contract Quantity / Order Price) × [1 + 1 / Leverage] × Taker Fee Rate

• Fee to Close (Sell order) = (Contract Quantity / Order Price) × [1 − 1 / Leverage] × Taker Fee Rate

 

Note:

The above formulas are used to calculate the order cost that will be occupied upon order placement. However, the actual fee to open and close will vary based on the order type, actual entry or exit price, and your VIP level.

 

 

 

 

Order Cost Examples

USDT and USDC Contracts

Trader A opens a long BTCUSDT position of 1 BTC at 50,000 USDT with 10x leverage. Assuming he is using a market order, with the taker fee rate of 0.055%.

 

The order cost is calculated as follows:

Initial Margin = (50,000 × 1) / 10 = 5,000 USDT

Fee to Open Position = 1 × 50,000 × 0.055% = 27.5 USDT

Fee to Close Position = 1 × 50,000 × [1 − (1 / 10)] × 0.055% = 24.75 USDT

 

In this case, order cost = 5,000 + 27.5 + 24.75 = 5,052.25 USDT

 

Inverse Contracts

Trader B opens a long ETHUSD position of 10,000 USD at 2,000 USDT with 25x leverage. Assuming he is using a market order, with the taker fee rate of 0.055%.

 

Initial Margin = (10,000 / 2,000) / 25

= 0.2 ETH

Fee to Open = (10,000 / 2,000) x 0.055%

= 0.00275 ETH 

Fee to Close = (10,000 / 2,000) x [(1 + (1 / 25)] × 0.055%

= 0.00286 ETH 

 

In this case, order cost = 0.2 + 0.00275 + 0.00286 = 0.20561 ETH

 

 

 

 

Order Placement Methods

Bybit supports three (3) primary order placement methods:

 

Order by Quantity:

This is the default order placement method, you can input the contract quantity you wish to buy or sell. For Inverse contracts, the quantity is in USD (e.g., 1 contract = 1 USD), while for USDT and USDC contracts, the quantity is in the respective underlying token (e.g., MNTUSDT is measured in MNT).

 

Order by Cost:

You can input the total cost you wish to spend, and the system will reverse-calculate the quantity to be placed. The derived order quantity/value must meet the minimum order quantity/value requirement. Note that this option is only available in Hedge Mode.

 

Order by Value:

You can input the position value you wish to open. For Inverse contracts, the contract value is in the respective coin (e.g., ETHUSD contract value is in ETH). For USDT and USDC contracts, the contract value is in USDT or USDC respectively. The system will reverse-calculate the quantity to be placed, which must meet the minimum order quantity/value requirement.