Why does my Position Size change when trading on Binance?

If you're Live trading on Binance, you may have noticed your open position size is often slightly smaller than the entry order was filled for.

The reason for this is Binance's entry fee.

Unless you hold BNB, Binance takes its fees from the asset being bought.

So when you convert USDT to another coin, such as XRP in the screenshot above, a small amount of XRP is deducted as the entry fee.

This means the open position ends up slightly smaller as the position is reduced by the entry fee amount.

This is further complicated by the fact it can lead to position sizes with more decimal places than Binance accepts in its orders.

In the example above, we can see the 57.5 XRP entry order has an entry fee of 0.0575.

This gives a position size of 57.4425.

However, Binance only accepts XRP orders to 1 decimal place, so we accumulate 0.0425 of XRP Dust as Binance will only accept exit orders of 57.4 XRP.

VEMA factor all of this in when calculating position sizing and risk management, so the only impact on your trading will be the accumulation of dust over time, which can be easily converted on Binance directly (Instructions found here), if you'd like to avoid dust accrual and save on fees, you can do that by holding BNB in your Spot account.