> For the complete documentation index, see [llms.txt](https://cadenceprotocol.gitbook.io/cadence-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cadenceprotocol.gitbook.io/cadence-protocol/cadence-perpetuals/trading-fees.md).

# Trading Fees

## Price Dynamics

Execute substantial trades on Cadence at the mark price with minimal price impact. Nonetheless, in times of heightened volatility, a spread might emerge between the Redstone price and the median price of reference exchanges.

Mark prices for each market are provided next to their respective names. Long positions commence at the higher price and conclude at the lower price, whereas short positions initiate at the lower price and terminate at the higher price.

The chart on the trade page illustrates the average of the two mark prices.

## Trading Fees

The fee for opening or closing a position stands at 0.1% of the position size.

For long positions, the collateral utilized is the token being held. For instance, when going long on ETH, the collateral would be in ETH. Conversely, for short positions, any of the supported stablecoins, like NOTE, serves as the collateral.

Should a swap be necessary during the opening or closing of a position, the standard swap fee applies. This fee, ranging from 0.2% to 0.8% of the collateral size, depends on whether the swap enhances or reduces the balance.

In addition to the swap fee, an execution fee is levied to cover the expenses associated with the blockchain network.

Initiating, closing, or modifying a position entails a two-step process:

1. Users initiate the first transaction to request the desired action—whether it's opening, closing, depositing collateral, or withdrawing collateral.
2. Keepers actively monitor the blockchain for these requests and execute them as necessary. The second transaction involves the "Execution Fee," presented in the confirmation box, covering the network cost paid to the blockchain network.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://cadenceprotocol.gitbook.io/cadence-protocol/cadence-perpetuals/trading-fees.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.