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How is Profit and Loss calculated?

Q. How is Profit and Loss calculated?

A.  For a given Trade Direction (LONG or SHORT), the Profit and Loss calculation at the Closing Price is derived as follows - 

Trade Direction

LONG (BUY): P/L referenced and calculated from the displayed SELL Price

SHORT (SELL): P/L referenced and calculated from the displayed BUY Price

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Position Profit Calculation: Buy (Long) Position

Profits made from the corresponding price rise are paid out at the new higher price.

Formula: Profit Long (Buy Trade) = 

variables:
s = Position Size, o = Open Price, c = Close Price

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Position Profit Calculation: Sell (Short) Position

Profits made from the price drop are calculated at the new lower price.

Formula: Profit Short (Sell Trade) = 

variables:
s = Position Size, o = Open Price, c = Close Price

Notes:

Open Price and Close Price: are as indicated on the BUY/SELL Buttons; at time of Trade Open/Close. 
Fees: Trade Open/Close Fees and Daily Interest charges are to be taken into account when assessing your Overall Profit.
Payouts in BTC may appear to be disproportional due to the change in the bitcoin price at the time of trade settlement. When converted to fiat equivalent (USD), payouts will be directly proportional.

January 2015

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