You are new to trading and as a speculator you suspect price is going up. You place a small Long Position at US$900 with 2:1 Leverage (as you are new, you know that a 2:1 leverage position is safer).
The position goes against you over the next 8 days and it hits the stop where it is automatically liquidated at US$590.
- Position Size: 0.45 BTC
- Deposit Required: 0.45 x (1+0.15) / 2 = 0.259 BTC
- Position Profit = 0.45 - ( ( 900 x 0.45 ) / 590 ) = -0.236 BTC
Funding = 0.00225 BTC per day (x7 days)
Open/Close Fee = 0.00225 BTC (x2)
Overall Profit = -0.256 BTC*
Note: Losses will never exceed Initial Deposits
* based on the following assumptions:
- Volatility multiplier of 15%
- Daily Interest Rate of 0.5% (first day free)
- Trade Fee of 0.5% (Open Fee, Close Fee)
For further information on Profit/Loss Calculation, click the link below -