Step 1: In the “cost / margin” field, enter your cost / margin. You can input “6,500” if you have 7,500 USDT in your USDS-M Futures wallet and want to open a long or short position with 6,500 USDT.
Step 4: Calculate the leverage. Enter “7” in the leverage section if you want to apply 7x leverage.
Step 5: If you’re using cross margin mode, enter your USDS-M Futures wallet balance. If your USDS-M Futures wallet contains 7,500 USDT and you wish to open a long or short position with that amount, you can enter “1,000” as your wallet balance. Leave it blank if you’re using the isolated margin mode.
Step 7: Enter the price at which you want to leave. You can ignore the negative PNL if you leave it blank.
Step 8: Choose your maintenance margin rate and enter your maintenance amount, which varies depending on the pair and position size you’re trading.
On this page, you can find the maintenance margin rate and amount dependent on the pair you trade and the size of your position.
For example, if you have a 4,000 USDT position and trade the ETHUSDT (perpetual) contract, you can choose 0.50 percent as your maintenance margin rate and enter 0 in the maintenance amount column.
If your position size for the ETHUSDT perpetual contract is greater than 10,000 USDT, such as a 12,000 USDT position, you should choose 0.65% as your maintenance margin rate and put 15 in the maintenance amount box.
If you don’t know how to determine your position size, multiply your cost (margin) by your leverage or multiply your position size in bitcoin by your entrance price.
Note that the actual liquidation price for your long positions may be slightly higher and the actual liquidation price for your short positions may be slightly lower than the liquidation price calculated here due to the maintenance margin rate, which varies depending on your position size and the pair you trade.
The liquidation price will be computed more properly if you refer to this page and find your maintenance margin rate and maintenance amount based on the pair you trade and your position size, then enter them into the calculator.
You should account for the change in leverage in the calculator when computing the liquidation price after adding or reducing margin from your position.
Consider the following scenario: you have a 1400 USDT position with 2x leverage, and your position’s margin (cost) is 700 USDT (1400/2).
In addition to adding “800” in the cost/margin box, you need update your leverage if you add 100 USDT margin to your position.
Your real leverage will alter from 2x to 1.75x (1400/800) after you add 100 USDT margin to your position. As a result, instead of “2,” you should enter “1.75” in the leverage column.
Your position size will be calculated as 1600 (8002) if you enter “2” in the leverage field and “800” in the cost/margin field.
As a result, the liquidation price will be incorrectly calculated because the size of your position does not change whether you add or remove margin.
Check out our Binance fee calculator to understand how to calculate Binance Futures costs and funding.
What is the formula for calculating futures profit?
The dollar value of a one-tick move is multiplied by the number of ticks the futures contract has moved since you purchased it to calculate profit and loss on a trade.
In Binance futures, how is PNL calculated?
- Unrealized PNL = (Marking price Initial buy rate) * Position size if the trade was opened in Long.
- Unrealized PNL = (Initial Sell Rate Marking Price) * Position Size if the deal is opened in Short.
The tagging price is the asset’s worth at the time of the trade’s close (or at the time of the PNL calculation).
The term “unrealized PNL” refers to a calculation that is based on the asset’s current market rate (and not the actual closing rate of the position). It’s a floating indication for an open position that shows how much money you’ll make (or lose) if you close it right now. It is based on current market value and excludes exchange expenses.
Until you close the trade, the profit or loss will remain unrealized. If you have a long position, the market price will be used to determine how much you can sell it for. This is the price at which you can buy to close a short position in the case of a short position. As a result, the exchange spread must be factored into the computation for a more accurate result.
The profit or loss is recognized as soon as the trade is closed. To put it another way, realized profit (realized PNL) is a measure that depicts the profit or loss for a closed position. It also takes into account the exchange’s commission.
How are futures prices determined?
The contract’s value is determined by the value of the underlying asset. The stock price is multiplied by the number of units in the contract to compute futures. To trade futures, investors must pay a margin, which is typically 10% of the contract’s value but can be as high as 20%. If the market swings in the opposite direction of the position, the margin serves as collateral.
If the price of a futures contract lowers before the expiration date, traders who sell it profit. To settle the futures contract, the buyer will have to pay the price specified in the contract. If the price of a futures contract has declined in value, the buyer will effectively pay more than the market price to settle the deal.
On the other side, if the futures price rises before the contract’s expiration date, the seller would lose money because they agreed to sell the futures at a lower price when the contract was signed. When the price rises before the expiration date, buyers profit. The difference between what they committed to pay under the futures contract agreement and the true market value of those futures currently is their profit.
Tip: Sellers of futures contracts profit if the underlying asset’s price falls before the expiration date, while buyers win if the price rises before the expiration date.
How are futures contracts calculated?
To figure out how much a futures contract is worth, multiply the price by the number of units in the contract. To convert to dollars and cents, multiply by 100. Assume the price of coffee futures in May 2014 is 190.5 cents. 37,500 pounds equals one coffee futures contract, therefore multiply 37,500 by 190.5 and divide by 100. The coffee futures contract has a value of $71,437.50.
What exactly are PnL and Roe?
Before making any orders, you can use the Binance Futures Calculator to figure out the starting margin, profit & loss (PnL), return on equity (ROE), and liquidation price.
In Binance, what are PnL and Roe?
The return on equity (ROE) is a metric that measures how well a deal has performed. A positive ROE indicates that the trade is lucrative, whereas a negative ROE indicates that the trade is losing money. The formula for calculating Return on Equity is ROE = (Unrealized PnL + Realized PnL – CloseOrderCommission) / Margin.
How do you figure out your trading profit?
The calculation of a position’s profit and loss is rather simple. You’ll need the position size and the number of pips the price has moved to calculate the P&L of a trade. The actual profit or loss will be determined by multiplying the position size by the pip movement.
On Binance, how do you calculate ROE?
The return on equity (ROE) of a corporation is calculated by dividing its net income by its shareholder equity and multiplying the result by 100 to get a percentage.
How does PnL crypto work?
To find your pnl, simply do the following:
- If you bought, position size * (mark price – entry price); if you sold, position size * (entry price – mark price) is the PNL for an open position.
What is the Binance margin ratio?
The margin ratio is determined by dividing the maintenance margin by the margin balance. As a result, if your margin balance falls below the maintenance margin rate, your positions will be liquidated by the exchange. Please verify that you have appropriate margin balance in your futures account in case of a price drop.