Here is a Trade Example to help get you started...
Recent negative press has struck panic among many bitcoin investors. You spot a downward trend in the market, suspect that the price will drop and want to take advantage of the news.
You have 2 BTC available to trade and open a Short Position with a 10:1 Leverage Option.
Over the following three days the price dives from US$600 to US$500.
- Position Size: 15 BTC
- Deposit Required: 15 x (1+0.15) / 10 = 1.725 BTC
- Position Profit = ( ( 600 x 15 ) / 500 ) - 15 = 3.0 BTC
Daily Interest = 0.075 BTC per day (x2 days)
Open/Close Fee = 0.075 BTC (x2)
Overal Profit = 2.70 BTC*
* based on the following assumptions:
- Volatility Multiplier: 15 %
- Daily Interest Rate: 0.5 % (first day is free)
- Trade Fee: 0.5% (Open Fee, Close Fee)
For further information on Profit/Loss Calculation, click the link below -