Basic examples

I open a 10 BTC buy position and price rises 10%
=>
I gain 1 BTC (10% × 10 BTC).

I open a 20 BTC sell position and price declines 10%
=>
I gain 2 BTC (10% × 20 BTC).

I open a 10 BTC buy position and price declines 10%
=>
I lose 1 BTC (10% × 10 BTC).

I open a 20 BTC sell position and price rises 10%
=>
I lose 2 BTC (10% × 20 BTC).

It's that simple. :)

In-Depth Example

Let's say you open a buy position on EUR/USD:

  • Size: 100 BTC
  • Leverage: 200x
  • Entry price: 1.12

Your margin (the real balance used in the position) is equal to 0.5 BTC (100BTC/200).

Price rises

If EUR/USD price rises and you close your position at 1.13, you'll make a profit of 0.8928 BTC.

100 * (1.13 - 1.12)/1.12 = 0.8928

Which represents a percent return against your margin of 178% (0.8928/0.5).

Price falls

If EUR/USD price falls and you close your position at 1.118, you'll make a loss of -0.1786 BTC.

100 * (1.118 - 1.12)/1.12 = -0.1785

Which represents a percent return against your margin of -36% (-0.1786/0.5).

Did this answer your question?