Let’s go deeper on the working of Zero Fee Trading: the trading experience on both BTC / TUSD contract and BTC Zero / TUSD contract is the same. Except on the BTC Zero / TUSD contract, you do not have to pay any fees whatsoever!

To trade on the Leveraged Zero Fee contracts, one must have BBD tokens in their wallet. BBD tokens are used as collateral for trading.

Let us consider an example of zero fees trading here : –

Emma does not have any BBD tokens but wants to avail zero fee trading. Although, she has 1000 TUSD in her wallet. She decides to buy 1000 BBD tokens at 1TUSD per BBD. Emma spends 1000 TUSD to buy 1000 BBD tokens in the BBD / TUSD spot market.

She proceeds to the BTC / TUSD Zero contract where the index is marked at 7000. This means, to buy 1 BTC / TUSD Zero contract, she needs to spend 7000 BBD tokens.

**(Note** – BBOD offers upto 50x leverage but leverage is not used in this example for simplicity.)

However, as she does not have sufficient BBD tokens, she cannot buy 1 BTC Zero / TUSD contract. She buys 0.143 BTC / TUSD Zero contracts instead. This is worth 1000 BBD. (Calculated as 1000 / 7000) .

**Her current balance = 1000 BBD ~~ 1000 TUSD**

Bitcoin gains 10% after some time. The price of BTC / TUSD Zero contract is 7700 now.

Her position is now at a 10% profit. This can be calculated as

Position size * (Exit Price – Entry Price) =

0.143 * (7700 – 7000) = 100 BBD tokens

**Her balance after profit = 1000 BBD + 100 BBD profit ~~ 1100TUSD **

**Fees paid = 0Total Profit = 100 TUSD**

Let us consider an example of standard fee trading here : –

Emma has 1000 TUSD in her wallet. She proceeds to the BTC / TUSD contract where the index is marked at 7000. This means, to buy 1 BTC / TUSD contract, she needs to spend 7000 TUSD.

**(Note** – BBOD offers upto 50x leverage but leverage is not used in this example for simplicity.)

However, as she does not have sufficient TUSD, she cannot buy 1 BTC / TUSD contract. She buys 0.143 BTC / TUSD contracts instead. This is worth 1000 TUSD. (Calculated as 1000 / 7000)

**Her current balance = 1000 TUSD**

Bitcoin gains 10% after some time. The price of BTC / TUSD contract is 7700 now.

Her position is now at a 10% profit. This can be calculated as

Position size * (Exit Price – Entry Price) =

0.143 * (7700 – 7000) = 100 TUSD

**Her balance after profit = 1000 TUSD + 100 TUSD profit ~~ 1100TUSD**

Assuming Emma placed a market order in all of these scenarios, we can calculate the fees as follows.

**Fees = 0.075% * 1000 + 0.075% * 1100**

**Fees = 1.575 TUSD**

**Total profit = 100 TUSD – 1.575 TUSD**

**Total profit = 98.425 TUSD**

Let us consider an example of leveraged zero fees trading here : –

Emma does not have any BBD tokens but wants to avail zero fee trading. Although, she has 1000 TUSD in her wallet. She decides to buy 1000 BBD tokens at 1TUSD per BBD. Emma spends 1000 TUSD to buy 1000 BBD tokens in the BBD / TUSD spot market.

She proceeds to the BTC Zero / TUSD contract where the index is marked at 7000. This means, to buy 1 BTC / TUSD Zero contract, she needs to spend 7000 BBD tokens.

However, as BBOD offers upto 50x leverage on contracts, she only has to spend 7000 / 50 = 140 BBD tokens to open a 1 BTC / TUSD Zero contract

**Her current balance = 1000 BBD ~~ 1000 TUSD**

Bitcoin gains 10% after some time. The price of BTC Zero / TUSD contract is 7700 now.

Her position is now at a 10% profit. This can be calculated as

Position size * (Exit Price – Entry Price) =

1 * (7700 – 7000) = 700 BBD tokens

**Her balance after profit = 1000 BBD + 700 BBD profit ~~ 1700TUSD **

**Fees paid = 0Total Profit = 700 TUSD**

Let us consider an example of standard fee trading here : –

Emma has 1000 TUSD in her wallet. She proceeds to the BTC / TUSD contract where the index is marked at 7000. This means, to buy 1 BTC / TUSD contract, she needs to spend 7000 TUSD.

However, as BBOD offers upto 50x leverage on contracts, she only has to spend 7000 / 50 = 140 TUSD to open a 1 BTC / TUSD contract.

**Her current balance = 1000 TUSD**

Bitcoin gains 10% after some time. The price of BTC / TUSD contract is 7700 now.

Her position is now at a 10% profit. This can be calculated as

Position size * (Exit Price – Entry Price) =

1 * (7700 – 7000) = 700 TUSD

**Her balance after profit = 1000 TUSD + 700 TUSD profit ~~ 1700TUSD**

Assuming Emma placed a market order in all of these scenarios, we can calculate the fees as follows.

**Fees = 0.075% * 7000 + 0.075% * 7700**

**Fees = 11.025 TUSD**

**Total profit = 700 TUSD – 11.025 TUSD**

**Total profit = 688.975 TUSD**

Comparing both scenarios, you may realise that zero fee trading is much better than its standard fee trading counterpart.

Standard Fee Trading | Zero Fee Trading |

Contract Name – BTC / TUSD | Contract Name – BTC Zero / TUSD |

Index Price – 7100 | Index Price ~ 7100 |

Collateral is TUSD | Collateral is BBD |

1 BTC / TUSD contract = 7000 TUSD | 1 BTC Zero / TUSD contract = 7000 BBD |

Upto 50x Leverage | Upto 50x Leverage |

Maintenance Margin, Initial Margin in TUSD | Maintenance Margin, Initial Margin in BBD |

Fees = 0.075% Taker; -0.025% Maker | Fees = 0 |

You can find the links for the zero fee contracts along with the BBD spot market below!

BTC/TUSD Zero Fee Contract (leverage upto 50x) – https://bbod.io/platform/symbol/CFX/BBD/BTC

ETH/TUSD Zero Fee Contract (leverage upto 50x) – https://bbod.io/platform/symbol/CFX/BBD/ETH

BBD/TUSD Spot Market – https://bbod.io/platform/symbol/SPOT/TUSD/BBD

We think leveraged Zero fee trading is a pretty cool use case of BBD tokens. We would love to know your thoughts! Hit us up on our telegram group – https://t.me/BBODCommunity. Looking forward to hear feedback and criticisms alike!

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