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Understand how it works

01 / An idea in one minute

Before investing or trading, explain where the profit would come from.

If you cannot explain it in simple words, there is still something you need to understand.

Ask yourself these three questions

  • What am I buying? An asset and a contract based on its price are not the same thing.
  • What would need to happen for me to profit? Identify what the result depends on.
  • What costs do I pay? Count entry, exit, and any costs of keeping the trade open, if applicable.
A Spot example

You buy for 100 USD and sell for 105 USD. With a 0.05% fee per trade, you pay about 0.10 USD across the purchase and sale. You keep approximately 4.90 USD profit after fees.

Illustrative example using gross executed amounts; it does not represent a promised return.

Try it now: complete “This strategy can profit if ___, can lose if ___, and costs me ___”.

If any answer is blank, that is your next question to research.

Learn more: how fees are calculated

The fee is calculated on the amount of each purchase or sale, not on the profit. In the example:

  • Purchase: 100 × 0.05% = 0.05 USD.
  • Sale: 105 × 0.05% = 0.0525 USD.
  • Total: 0.1025 USD. Profit after fees: 5 − 0.1025 = 4.8975 USD, approximately 4.90.

With the 20% discount applied when signing up through our Pionex link, the platform where we trade, the effective Spot fee would be 0.04%. In this same example, the cost would be 0.082 USD and the profit after fees, approximately 4.92 USD.

When comparing strategies, look at results after fees. More trades also mean more costs, even if each charges a small percentage.

This affiliate link gives you access to the stated discount, and we may receive a commission. You save on fees and help support the project. Pionex’s standard Spot fee was verified on October 14, 2026.

Now see what could go wrong →

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