Trade 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.
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).
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).
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).
Last modified 1yr ago