## What is Order Cost?

*Order Cost* refers to the expenses associated with executing trades, including Initial Margin (1/Leverage * Entry Order Value) and Trading Fees.

## How to Calculate Order Cost?

Order Cost =1/Leverage * Entry Order Value + (Entry Order Value + Bankruptcy Value) * Taker Fee

*Taker Fee*depends on the contract. Refer to the Fees page to check each contract's fee rate.- If you're using Cross Margin (0x Leverage), you'll need to enter the Max Leverage for that contract. You can find what the Max Leverage is on the Contracts Guide page.
- If the expected
*Liquidation Price*of your position is lower than the*Mark Price*, the position will be liquidated at the time of the execution due to the current*Mark Price*status. This means*Sell Premium*must be added to the*Order Cost*calculation in order to open a position like that.*Sell Premium*is calculated as:**Sell Premium**= Max(0, Entry Order Value - ABS(Entry Order Value * (1/Leverage - (Maintenance Margin Rate/100 - Funding Rate/100))) - Mark Price Order Value)

*Entry Order Value* is calculated as:

Entry Order Value= Entry Price in cryptocurrency value * # of Contracts

- The
*Entry Price*has to be converted to the contract value in the relevant cryptocurrency. For instructions on how to convert the quoted price of a particular contract to the cryptocurrency value, refer to "How is X Contract Quoted?" under each contract type. (Linear, Inverse, and Quanto)

the formula for *Bankruptcy Value* is:

Bankruptcy Value =Entry Order Value + 1/Leverage * Entry Order Value

*Mark Price Order Value* is:

Mark Price Order Value= Round(1/Mark Price, 8)* 100

## Example: Buy Order Cost Calculation

Let's say you would like to buy 100,000 XBTUSD contracts at $10,283 with 100x leverage. The required *Order Cost* is 0.1119 XBT.

Here is how you can calculate that manually:

### 1. Calculate the Entry Price in the cryptocurrency value

**XBT Contract Value** = Multiplier / XBTUSD Price

**Entry Price in XBT** **Value** = 1/10283

**Entry Price in XBT Value **= 0.00009725

### 2. Calculate the Entry Order Value

**Entry Order Value** = Entry Price in cryptocurrency value * # of Contracts

**Entry Order Value** = 0.00009725 * 100000

**Entry Order Value **= 9.725

### 3. Calculate Bankcruptcy Value

**Bankruptcy Value **= Entry Order Value + 1/Leverage * Entry Order Value

**Bankruptcy Value **= 9.725 + 1/100 * 9.725

**Bankruptcy Value **= 9.82225

### 4. Calculate Order Cost

**Order Cost** = 1/Leverage * Entry Order Value + (Entry Order Value + Bankruptcy Value) * Taker Fee

**Order Cost **= 1/100 * 9.725 + (9.725 + 9.82225) * 0.075%

**Order Cost **= 0.1119104375

## Example: Sell Order Cost Calculation

Let's say you would like to sell 100,000 XBTUSD contracts at $10,283 with 100x leverage.

*Order Cost*is 6.2026 XBT*Liquidation Price*is 10348.5*Mark Price*is 27991.65

As the *Mark Price* is above the potential *Liquidation Price*, the calculation for this scenario is the following:

Sell Premium= Max(0, Entry Order Value - ABS(Entry Order Value * (1/Leverage - (Maintenance Margin Rate/100 - Funding Rate/100))) - Mark Price Order Value)

### 1. Calculate the Entry Price in the cryptocurrency value

**XBT Contract Value** = Multiplier / XBTUSD Price

**Entry Price in XBT** **Value** = 1/10283

**Entry Price in XBT Value **= 0.00009725

### 2. Calculate the Entry Order Value

**Entry Order Value** = Entry Price in cryptocurrency value * # of Contracts

**Entry Order Value** = 0.00009725 * 100000

**Entry Order Value **= 9.725

### 3. Calculate Bankcruptcy Value

**Bankruptcy Value **= Entry Order Value + 1/Leverage * Entry Order Value

**Bankruptcy Value **= 9.725 + 1/100 * 9.725

**Bankruptcy Value **= 9.82225

### 4. Calculate Mark Price Order Value

**Mark Price Order Value** = Round(1/Mark Price, 8)* # of contracts

**Mark Price Order Value** = Round(1/27991.65, 8)* 100000

**Mark Price Order Value **= 0.00003572 * 100000

**Mark Price Order Value **= 3.572

### 5. Calculate Sell Premium

**Sell Premium** = Max(0, Entry Order Value - ABS(Entry Order Value * (1/Leverage - (Maintenance Margin Rate/100 - Funding Rate/100))) - Mark Price Order Value)

**Sell Premium** = Max(0, 9.725 - ABS(9.725 * (1/100 - (0.35/100 - 0.01/100))) - 3.572)

**Sell Premium **= 6.08882

### 6. Calculate Order Cost

**Order Cost** = 1/Leverage * Entry Order Value + (Entry Order Value + Bankruptcy Value) * Taker Fee + Sell Premium

**Order Cost** = 1/100 * 9.725 + (9.725 + 9.82225) * 0.075% + 9.65724

**Order Cost** = 0.1119104375 + 6.08882

**Order Cost **= 6.20