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Scenario 3: Long Position | 2:1 Leverage

Scenario 3

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

Apply Fees:
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 -
https://support.btc.sx/hc/en-gb/articles/201047461-How-is-Profit-and-Loss-calculated-

 

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