Perpetual swaps, as the name suggests, are futures contracts without an expiry date. Unlike traditional futures that settle weekly, perpetual swaps employ a daily settlement mechanism, typically occurring two or three times a day depending on the exchange. This article focuses specifically on OKX perpetual swaps. Before engaging in perpetual swap trading, it is crucial to understand the associated fees, even on a reputable platform like OKX.
The standard fee structure for OKX perpetual swaps generally ranges from 0.02% to 0.015% for makers (those providing liquidity) and 0.05% to 0.03% for takers (those removing liquidity). These fees are incurred every time a trade is executed.
How Funding Rates Work
A defining characteristic of perpetual swaps is the funding rate mechanism, which helps tether the contract price to the underlying spot index. On OKX, this funding fee is exchanged between traders every 12 hours, precisely at 10:00 and 22:00 UTC after contract settlement.
- You will only pay or receive a funding fee if you hold an open position at these specific times.
- The funding fee (in USD) is calculated as:
Face Value * Number of Contracts * Funding Rate. - If the funding rate is positive, traders with long positions pay those with short positions.
- If the funding rate is negative, traders with short positions pay those with long positions.
The funding rate itself is determined by a formula that considers the difference between the perpetual swap mid-price and the spot index price, with a clamp function (typically between -0.25% and +0.25%) to limit extreme values.
👉 View real-time funding rate calculations
Calculating Your Profit and Loss
Understanding how to calculate your realized and unrealized profit and loss (P&L) is fundamental to managing your trades effectively. You can voluntarily decide to buy or sell contracts based on market conditions and your trading strategy before settlement.
Realized P&L
Realized P&L refers to the actual profit or loss that occurs when you close a position.
For Buy (Long) Positions:
Realized P&L = (Face Value / Settlement Price – Face Value / Average Closing Price) * Number of Contracts Closed- Example: You open a long position of 2 BTC contracts with a settlement price of $500/BTC. Later, you close 1 contract at an average price of $1,000/BTC.
P&L = (100 / 500 – 100 / 1000) * 1 = 0.2 - 0.1 = 0.1 BTC
For Sell (Short) Positions:
Realized P&L = (Face Value / Average Closing Price – Face Value / Settlement Price) * Number of Contracts Closed- Example: You open a short position of 10 BTC contracts at a settlement price of $500/BTC. You then close 8 contracts at an average price of $1,000/BTC.
P&L = (100 / 1000 – 100 / 500) * 8 = (0.1 - 0.2) * 8 = -0.8 BTC(This represents a loss).
Unrealized P&L
Unrealized P&L shows the current profit or loss on your open positions, which fluctuates with the market's latest mark price.
For Buy (Long) Positions:
Unrealized P&L = (Face Value / Settlement Price – Face Value / Latest Mark Price) * Open Position Size- Example: You are long 6 BTC contracts opened at a $500/BTC settlement price. The current mark price is $600/BTC.
P&L = (100 / 500 – 100 / 600) * 6 = (0.2 - ~0.1667) * 6 = ~0.2 BTCprofit.
- For Sell (Short) Positions:
Unrealized P&L = (Face Value / Latest Mark Price – Face Value / Settlement Price) * Open Position Size
👉 Get advanced P&L calculation tools
Frequently Asked Questions
What is the difference between a maker and a taker fee?
A maker fee is charged when you place an order that adds liquidity to the order book (e.g., a limit order that isn't immediately matched). A taker fee is charged when you place an order that immediately removes liquidity from the order book (e.g., a market order). Maker fees are usually lower to incentivize providing liquidity.
How often are funding fees paid on OKX?
Funding fees on OKX are exchanged every 8 hours, at 00:00, 08:00, and 16:00 UTC. You will only pay or receive this fee if you hold an open position at these exact timestamps.
Can funding fees be negative?
Yes, a negative funding rate means the perpetual swap price is trading below the spot index price. In this scenario, traders with short positions pay those with long positions, incentivizing traders to buy and push the price back toward the index.
Are perpetual swap fees tax-deductible?
Trading fees, including maker/taker and funding fees, are typically considered costs of trading and can often be deducted from your taxable gains. However, tax regulations vary significantly by jurisdiction. It is essential to consult with a qualified tax professional familiar with the laws in your country.
What is the main risk of trading perpetual swaps?
The primary risk is leverage. While leverage can amplify profits, it also magnifies losses, potentially leading to losses that exceed your initial margin. It is critical to use risk management tools like stop-loss orders and never invest more than you can afford to lose.
Disclaimer & Risk Warning: Digital asset trading involves significant risk. The content provided here is for educational and informational purposes only and should not be construed as investment, financial, or trading advice. It is your responsibility to ensure that your participation complies with the laws and regulations of your local jurisdiction. Always conduct your own research and exercise extreme caution, as you are solely responsible for your investment decisions.