Trade Examples

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 BTC/USD:

• Size: 40 BTC

• Leverage: 20x

• Entry price: 10000

Your margin (the real balance used in the position) is equal to 2 BTC (40BTC/20).

Price rises

If price rises and you close your position at 11000, you'll make a profit of 4 BTC.

40 * (11000 - 10000)/10000 = 4

Which represents a percent return against your margin of 200% (4/2).

Price falls

If price falls and you close your position at 9900, you'll make a loss of -0.4 BTC.

40 * (9900 - 10000)/10000 = -0.4

Which represents a percent return against your margin of -20% (-0.4/2).