Contract trading is a high-risk, high-return investment method. In order to make a lucrative profit, you need to have sufficient strength and master the accurate profit calculation method. Next, this article will explain the profit calculation of cryptocurrency contracts to you, so that you can easily make money while trading!
Binance Exchange - the world's largest Bitcoin exchange, register to receive a 20% commission rebate.
Binance referral code XSGEK3VL
Binance registration: https://www.binance.com/zh-CN/join?ref=XSGEK3VL
Profit calculation formula for contract trading
The profit calculation formula of contract trading is very simple: profit = (selling price - buying price) * number of lots contract value leverage ratio. Among them, the number of lots refers to the number of orders you place to buy/sell, the contract value is the base unit value of the contract transaction, and the leverage ratio is the factor that determines your final profit.
Taking Bitcoin contract trading as an example, if you use a leverage of 30 times, a contract value of 0.1 BTC, a buy price of 40,000 yuan, a sell price of 42,000 yuan, and a lot size of 2, the actual profit is:
(42000-40000) * 2 0.1 30 = 12000 yuan
Issues to be aware of when calculating income
In actual operation, we need to pay attention to some issues:
(1) Handling fees: Handling fees need to be considered when calculating returns. The handling fee standards of different platforms are also different, so please check carefully.
(2) Leverage ratio: Although leverage ratio can magnify your returns, it also magnifies risks. A reasonable leverage ratio should be determined based on your risk appetite and financial strength.
(3) Take Profit and Stop Loss: During the trading process, we can set take profit and stop loss points to control the profit risk.
(4) Market environment: Market fluctuations will also affect your returns, so you need to conduct corresponding analysis and operations based on market conditions.
How to improve yield?
In cryptocurrency contract trading, you need to master the following skills to increase your yield:
(1) Use leverage ratios appropriately to ensure that investment risks are controllable.
(2) Strictly implement the stop-profit and stop-loss strategies to effectively control the risk of losses and slippage losses.
(3) Set reasonable entry and exit points to avoid entering and exiting the market during peak hours.
(4) Analyze market conditions from multiple angles, grasp trends, and accurately determine the next direction of operation.
(5) Flexibly use technical indicators, such as moving average, MACD, KDJ, etc., to analyze market trends and adjust operating strategies in a timely manner.
In short, the calculation of the return on cryptocurrency contracts is a complex process that requires relevant knowledge and skills. Investors must remain calm when trading digital currency contracts and make reasonable investment plans and risk management according to their own risk preferences in order to achieve effective return growth!
