A unique feature of the Overbit platform is allowing users to choose a fee or a spread for each position that is opened. In this guide we will explain the difference between the two options. Overbit originally didn't charge fees for any positions. Overbit, instead added a small spread to the asset price. Most traders prefer to trade this way with no fees. Some traders who have migrated from other platforms preferred to trade with a fee. To satisfy both groups, Overbit introduced a switch that allows traders to choose fees or spreads before opening a position.

The Fee vs Spread switch can be seen on the top right hand side of the deal ticket window.

Opening a Position with a Fee

Overbit charges a percentage fee of the position’s notional value each time a position is opened and closed. On BTC/USD the fee is 0.075%.

For example, let’s say BTC/USD is trading at $10,000. A trader who opens a BUY (LONG) position for 1 BTC will be charged an opening fee of 0.075% X 1 BTC. This works out to 0.00075 BTC ($7.50 USD). 

Likewise, the trader will incur a closing fee of 0.075% of 1 BTC which is equivalent to 0.00075 BTC when closing that position.

Please note that fees charged are based on the notional value of the position irrespective of the leverage chosen.

Overbit will display a trade confirmation window showing the fee calculation for this position. When opening and closing a position using the fee option, the fee is deducted from the trader's wallet balance.

Opening a Position with a Spread

By flipping the switch to Spread, traders are able to open a position using a market spread on Overbit. The market spread is the difference between the BUY price and the SELL price of a trading pair. 

On BTC/USD the spread is 0.15%. This represents 2 X 0.075%. The spread is fixed and does not fluctuate during volatile periods. 

For example, let’s say BTC/USD is trading at $10,000. Using the Spread option, the BUY price would be $10,007.50 and the SELL price would be $9,992.50.

Traders using the market spread option are not charged trading fees for opening and closing a position. This means that traders can easily calculate PnL without taking trading fees into account. 

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