How to calculate profit and loss on EXEX?
How to calculate profit and loss on EXEX?
You can calculate the profit for closed and opened positions and the position you are willing to open following the special formulas.
Closed position
To determine the profit and loss for the closed position, you need to be aware of the price you bought and sold it for. The formula is the following:
(Sell Price - Buy Price) x Base Quantity=Profit
Total Amount÷Opening Price=Base Quantity
Note: Buy price – is the opening price for the Long position or closing price for the Short position. Sell price – is the opening price for the Short position or closing price for the Long position. Total Amount – is the amount for the deal multiplied by the chosen leverage.
Calculation examples
We have a Bitcoin asset with a price of $20 000. We decided to open a long position with a value of $100 in our own money and use the leverage 500x. The total amount for the deal is:
$100 x 500 = $50 000
Once we opened the position, the price increased up to $20 040 (+0.2%). Let’s calculate what profit we received:
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We calculate the Base Quantity. Base Quantity is: $50 000÷$20 000 = 2.5 BTC
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Profit calculations: ($20 040-$20 000) x 2.5 BTC=Profit $40 x 2.5 BTC=Profit Profit=$100
In that case, we have opened the deal with our $100 and received a profit of $100 with the help of the leverage 500x.
And let's open a short position. We have a Bitcoin asset with a price of $25 000. Our amount for the position is $100 in our own money, and we use the leverage 500x. The total amount for the deal is: $100 x 500 = $50 000
Once we opened the position, the price dropped to $24 950 (-0.2%). Let’s calculate what profit we received:
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We calculate the Base Quantity. Base Quantity is: $50 000÷$25 000 = 2 BTC
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Profit calculations: ($25 000-$24 950) x 2 BTC=Profit $50 x 2 BTC=Profit Profit=$100
In that case, we have opened the deal with our $100 and received a profit of $100 with the help of the leverage 500x.
Opened position
When you have opened a position, you can calculate Profit/UPnL (unrealized Profit and Loss). The formula is the following:
Long position: (Last trade-Buy Price) x Base Quantity=Profit
Short position:( Sell Price-Last trade) x Base Quantity=Profit
Note: Buy price – is the opening price for the Long position. Sell price – is the opening price for the Short position. Last trade – the asset's price for the last trade made on the market.
Calculation examples
We have a Bitcoin asset with a price of $20 000. We decided to open a long position with a value of $100 in our own money and use the leverage 500x. The total amount for the deal is:
$100 x 500 = $50 000
We opened the position, and the price increased up to $20 020 (+0.1%). Let’s calculate what profit we can receive if we decide to close the deal manually:
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We calculate the Base Quantity. Base Quantity is: $50 000÷$20 000 = 2.5 BTC
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Profit calculations: ($20 020-$20 000) x 2.5 BTC=Profit $20 x 2.5 BTC=Profit Profit=$50
In that case, we have opened the deal with our $100 and received a profit of $50 with the help of the leverage 500x and manual closure.
And let's open a short position. We have a Bitcoin asset with a price of $25 000. Our amount for the position is $100 in our own money, and we use the leverage 500x.
The total amount for the deal is: $100 x 500 = $50 000
Once we opened the position, the price dropped to $24 975 (-0.1%). Let’s calculate what profit we received:
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We calculate the Base Quantity. Base Quantity is: $50 000÷$25 000 = 2 BTC
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Profit calculations: ($25 000-$24 975) x 2 BTC=Profit $25 x 2 BTC=Profit Profit=$50
In that case, we have opened the deal with our $100 and received a profit of $50 with the help of the leverage 500x and manual closure.
Before the position is opened
On EXEX, you can also see the potential profit and loss before opening the position. Our system calculates it for you. In the trade room, you just need to insert the amount you're willing to use, choose the risk level you prefer, and our system will show you the Earnings and Losses you might have.
Pay attention that your earnings and losses are shown according to the amount you actually invested and the leverage you use. For example, if you invest $1 with the 500x multiplier, then your amount for the position will be $500. That means that for each 0.2% price change of the asset, you receive +$1 if it goes in the preferable direction and loses -$1 if it goes in the opposite direction. Thus, if you want to have higher earnings, you should invest a higher amount.
Important: There can be a situation when the order is being executed at a different price of an asset than the expected price. It is called slippage. Slippage can occur when the spread changes between when a market order is requested and when it’s being executed. Slippage takes place in every trading market and is considered to be a normal trading event. Take it into account when buying and selling assets.