Essential Technical Formula for Successful Binance Trading

1. Leverage Formula:

Leverage Ratio = Total Position Size / Your Equity

For example: With an equity of $1,000 and a position of $10,000, the leverage ratio is 10x.

2. Stop Loss Calculation:

Stop Loss Price = Entry Price - (Entry Price × Stop Loss Ratio)

For example: For an entry price of $50 and a stop loss ratio of 2%, the stop loss price is $49 (50 - (50 × 0.02)).

3. Risk Management Formula:

Risk per Trade = (Capital × Risk Ratio) / Leverage

For example: With capital of $1,000, risk of 2% per trade and leverage of 10x, the risk per trade is $20 ((1000 × 0.02) / 10).

4. Profit Target:

Profit Target Price = Entry Price + (Entry Price × Target Ratio)

For example: With entry price of $50 and target ratio of 5%, the profit target price is $52.50 (50 + (50 × 0.05)).

5. Daily Profit Calculation:

Daily Profit = (Ending Balance - Beginning Balance) / Beginning Balance × 100

For example, if the beginning balance is $1,000 and the ending balance is $1,020, the daily profit is 2% ((1020 - 1000) / 1000 × 100).

Use these formulas to improve your trading accuracy and risk management on Binance.