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Scenario 2: Long Position | 5:1 Leverage

Scenario 2

Bloomberg reports that the Bitcoin rocket is launching, they speculate that the price is going to the moon!

You have 1 BTC available to place a trade and open a Long Position with 5:1 Leverage. The price you open a position at is US$545, the price rises immediately to US$600 where you close the position.

  • Position Size: 4.09 BTC
  • Deposit Required: 4.09 x (1+0.15) / 5 = 0.94 BTC
  • Position Profit = 4.09 - ( ( 545 x 4.09 ) / 600 ) = 0.375 BTC

Apply Fees:
Daily Funding = 0 BTC (free for day trades)
Open/Close Fee = 0.0204 BTC (x2)

Overal Profit = 0.334 BTC*

* based on the following assumptions:
- Volatility Multiplier of 15%
- Trade Fee of 0.5% (Open Fee, Close Fee)

For further information on Profit/Loss Calculation, click the link below -
https://support.btc.sx/hc/en-gb/articles/201047461-How-is-Profit-and-Loss-calculated-

 

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