The True Cost of Trading Fees
Most traders underestimate how fees eat into arbitrage profits. A funding rate of 0.1% sounds good until you factor in 0.04% taker fees on each side, leaving you with 0.02% net per period.
Fee Calculation
Per trade: Position Size × 0.0004 (0.04% taker)
Round trip: Position Size × 0.0008 (enter + exit)
Net from funding: (Long Rate + Short Rate) × Position Size