Difference between revisions of "Trading costs"

Revision as of 20:28, 6 April 2021

Traders incur trading costs to do trades using the Bisq trading protocol.

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-To trade on Bisq, traders pay [[trading_fees]] in BTC or BSQ and [[mining_fees]] to BTC miners.<br>
+Traders incur '''trading costs''' to do trades using the Bisq trading protocol.
-Another "cost" is the difference between [[Bisq_Price_Indices|spot price]], and an actual offer's, which is called spread. This difference is set by traders freely and tends to be reduced with higher liquidity.
+__TOC__
+=== Trading fees ===
+[[Trading_fees|Trading fees]] are paid to the Bisq DAO to fund development of the Bisq software.
+These fees are payable in BTC or BSQ, with BSQ fees targeted at offering a discount of 50% over BTC fees.
+=== Mining fees ===
+Bitcoin mining fees must be paid to do on-chain bitcoin transactions, and each Bisq trade currently requires 4 on-chain transactions: maker fee tx, taker fee tx, deposit tx, and payout tx.
+Offer makers only pay for the first one (maker fee tx) while offer takers pay for the other three (taker fee tx, deposit tx, and payout tx).
+=== Premiums ===
+Another potential cost is the difference between [[Bisq_Price_Indices|spot price]] offer price (also known as spread). Spread is set by offer-makers and tends to go down as liquidity improves.