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Transaction Fee Meaning

A transaction fee is a cost paid to process and validate a transaction on a blockchain or trading platform. Fees compensate validators, miners, or infrastructure providers.

On blockchains, fees often vary based on network congestion and transaction complexity. Users may pay higher fees to prioritize execution.

In trading venues, transaction fees are typically charged per trade and may depend on volume or role (maker vs taker).

Transaction fees directly affect execution cost and strategy profitability.

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