Trading Fees Explained: Maker/Taker, Spread, Funding & Slippage (Complete Guide)
Understand trading fees end-to-end: maker vs taker, spreads, funding rates, slippage, and how costs reduce your net PnL. Includes examples and checklists.
Trading costs shape your break-even, your win rate, and the true risk/reward of every setup. This pillar guide maps the full cost stack.
The five costs you must model
- Exchange fees (maker/taker)
- Spread (bid-ask)
- Slippage (execution worse than expected)
- Funding (perpetuals)
- Borrow, conversion, and withdrawal costs
Break-even math
If round-trip costs are 0.2%, price must move more than 0.2% just to break even. Small targets get crushed by costs.
Costs change true risk/reward
A clean 1:2 on the chart can be 1:1.6 after slippage and fees. Model stop slippage separately.
Practical cost stack checklist
- Maker or taker execution?
- Expected spread and liquidity?
- Slippage risk?
- Funding rate (perps)?
- Borrow and conversion fees?