The all-in cost of a trade

A trading fee is only part of a trade's cost. For a perpetual position, entry and exit prices, fees, and funding all affect the result. A lower fee can be outweighed by a worse fill or more expensive holding costs.

To compare costs, use a defined price benchmark for each trade and keep them separate from profit or loss caused by the market moving while you hold the position.

Start with execution cost

The midpoint is halfway between the best bid and best ask. It is a comparison benchmark, not necessarily a price at which you can trade. An immediate order against a conventional order book crosses toward the ask when buying or the bid when selling.

For example, if the bid is $99 and the ask is $101, the midpoint is $100. Buying one unit at $101 costs $1 relative to that midpoint before fees. A larger order may consume higher-priced offers and have a worse average fill.

Cost against mid is often expressed in basis points. One basis point is 0.01%. The slippage guide explains how to measure fills against a benchmark without counting the spread twice.

In an RFQ market, use the quote available for the requested side and size. Comparing it with a reference can be useful, but the reference is not itself an executable offer.

Add trading fees

A fee is usually calculated from the fill's notional and the applicable rate. Maker and taker rates can differ, and some schedules include rebates. Whether a fill adds or takes liquidity matters more than the order's name: a limit order can execute immediately as a taker.

Use the rate that applies to the account, instrument, and fill. For N1, consult the current fee schedule.

Include funding over the holding period

A perpetual position can pay or receive funding. Its interval and calculation depend on the venue; N1 calculates funding hourly. Future rates and the position's notional can change, so a holding-cost estimate needs explicit assumptions.

Funding paid adds to cost; funding received offsets it. Funding rates explained covers the calculation and why a current projection is not a fixed rate for the whole holding period.

Count the exit too

Closing requires another execution and may incur another fee. Use the market conditions at the exit rather than assuming the entry spread and depth will still be available.

Measure each execution against its own stated benchmark. If the market rises or falls between entry and exit, that price movement is trading PnL, not automatically an execution cost. Separating the two helps explain whether an outcome came from market direction, fills, or charges.

A $10,000 long held for two days

Assume a constant $10,000 notional, 3 basis points of execution cost against mid on each side, a 0.035% fee per fill, and positive hourly funding of 0.001% throughout 48 hours. These are illustrative assumptions, not a current market quote or fee-tier promise.

The two fees account for $7 of the $17.80. This estimates trading and holding costs under fixed assumptions; it does not include a directional price gain or loss. Borrowing, deposits, withdrawals, currency conversion, or taxes may create additional costs where applicable.

Compare like with like

• Use the same market, side, quantity, and moment when comparing available fills.
• State the benchmark and whether the figure already includes spread or price impact.
• Apply the actual fee rate, including any maker rebate.
• Use the same holding period and funding assumptions.
• Include the expected exit, with room for different execution conditions.

A no-fee venue can still produce a higher total cost. Equally, a good entry fill can be outweighed by later funding or a difficult exit.

Finding the inputs on N1

N1's market pages show projected funding and market information. Use current order-book depth or a valid RFQ quote for the requested size, alongside the fee schedule. After execution, compare the actual fills and account funding entries with the assumptions you used.

For the execution mechanics, see market vs limit orders and N1's execution modes.