Essential Technical Formulas for Successful Binance Trading
1. Leverage Formula:
Leverage Ratio = Total Position Size / Your Capital
Example: With $1,000 capital and a $10,000 position, the leverage ratio is 10x.
2. Stop-Loss Calculation:
Stop-Loss Price = Entry Price - (Entry Price Ă Stop-Loss Percentage)
Example: For an entry price of $50 and a stop-loss percentage of 2%, the stop-loss price is $49 (50 - (50 Ă 0.02)).
3. Risk Management Formula:
Risk per Trade = (Capital Ă Risk Percentage) / Leverage
Example: With $1,000 capital, risking 2% per trade, and 10x leverage, the risk per trade is $20 ((1000 Ă 0.02) / 10).
4. Profit Target:
Profit Target Price = Entry Price + (Entry Price Ă Target Percentage)
Example: For an entry price of $50 and a target percentage of 5%, the profit target price is $52.50 (50 + (50 Ă 0.05)).
5. Daily Return Calculation:
Daily Return = (Ending Balance - Starting Balance) / Starting Balance Ă 100
Example: If the starting balance is $1,000 and the ending balance is $1,020, the daily return is 2% ((1020 - 1000) / 1000 Ă 100).
Utilize these formulas to enhance your trading precision and risk management on Binance.
