What is Order Cost?
Order cost refers to the total funds required to place a trade. Traders can view this amount in real-time via the order placement or confirmation window. It's influenced by factors like position value, leverage, and fees, and includes:
- Initial margin to open a position
- Opening fees
- Closing fees
Order Cost Across Different Contract Types
- USDT & USDC Contracts: Settled in USDT or USDC respectively.
- Inverse Contracts: Settled in the underlying cryptocurrency (e.g., BTCUSD contracts in BTC).
In Unified Trading Accounts (UTA), users may collateralize other assets as margin balance—eliminating the need to hold specific settlement currencies for initial margin. However, opening/closing fees must still be paid in the settlement asset when orders execute. Insufficient funds trigger auto-borrowing (see Borrowing & Repayment for UTA).
Order Cost Formulas
USDT/USDC Contracts
Order Cost = Initial Margin + Opening Fee + Closing Fee
- Initial Margin: (Contract Qty × Order Price) ÷ Leverage
- Opening Fee: Contract Qty × Order Price × Taker Rate
- Closing Fee (Buy): Contract Qty × Order Price × [1 - 1/Leverage] × Taker Rate
- Closing Fee (Sell): Contract Qty × Order Price × [1 + 1/Leverage] × Taker Rate
Inverse Contracts
Order Cost = Initial Margin + Opening Fee + Closing Fee
- Initial Margin: (Contract Qty ÷ Order Price) ÷ Leverage
- Opening Fee: (Contract Qty ÷ Order Price) × Taker Rate
- Closing Fee (Buy): (Contract Qty ÷ Order Price) × [1 + 1/Leverage] × Taker Rate
- Closing Fee (Sell): (Contract Qty ÷ Order Price) × [1 - 1/Leverage] × Taker Rate
Note: Formulas estimate pre-order costs. Actual fees vary by order type, execution price, and VIP tier.
Practical Examples
USDT Contract
Scenario: User A opens 1 BTC long on BTCUSDT at 50,000 USDT with 10x leverage (Taker rate: 0.055%).
- Initial Margin: (1 × 50,000)/10 = 5,000 USDT
- Opening Fee: 1 × 50,000 × 0.00055 = 27.5 USDT
- Closing Fee: 1 × 50,000 × [0.9] × 0.00055 = 24.75 USDT
Total Order Cost: 5,052.25 USDT
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Inverse Contract
Scenario: User B opens 10,000 USD ETHUSD long at 2,000 USDT with 25x leverage (Taker rate: 0.055%).
- Initial Margin: (10,000 ÷ 2,000) ÷ 25 = 0.2 ETH
- Opening Fee: 5 × 0.00055 = 0.00275 ETH
- Closing Fee: 5 × [1.04] × 0.00055 = 0.00286 ETH
Total Order Cost: 0.20561 ETH
Order Placement Methods
Bybit supports three primary methods:
Quantity-Based Orders
Default method—input contract units. For inverse contracts, 1 contract = 1 USD; USDT/USDC contracts use the underlying asset (e.g., MNT for MNTUSDT).
Cost-Based Orders
Enter total intended cost; system calculates contract quantity. Must meet minimum order requirements. Available only in bidirectional position mode.
Position Value Orders
Specify desired position value (in crypto for inverse contracts, USDT/USDC for others). System derives contract quantity subject to minimum thresholds.
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FAQ Section
Q1: Can I reduce order costs?
A1: Yes—using limit orders (Maker fees), higher VIP tiers, or lower leverage reduces fees.
Q2: Why does my order cost exceed available balance?
A2: This occurs when estimated fees + margin exceed collateral. Deposit more funds or adjust position size.
Q3: Are closing fees charged immediately?
A3: No, they're estimated during order placement but only charged upon actual trade closure.
Q4: How does UTA simplify margin management?
A4: It allows cross-asset collateralization, though settlement assets remain needed for fees.
Q5: What's the minimum order cost for BTCUSDT?
A5: Depends on current price and leverage. Calculate using the formulas above with your parameters.