Profit and Loss

Leverage employed in margin trading will inevitably increase capital efficiency while simultaneously increasing financial risk. Users run the risk of losing money if they borrow the assets and trade the wrong way. They risk losing money if they liquidate their position after the market value of the asset they have supplied can no longer cover their trading losses. Additionally, the suppliers will receive more from the pools and the interest that the borrowers pay will be increased.

Users may win multiplied profit if they trade in the right direction and close their position at the right time.

Unrealized Contract Profit and Loss

Long position: Margin Trading Unrealized Profit andLloss = (Market Price - Opening Average Price) * Size

Short position: Margin Trading Unrealized Profit and Loss = (Average Opening price - Market price) * Size

Liquidation Profit and Loss (Excluding Capital Costs and Transaction Fees)

Long Position: Margin Trading Realized Profit and Loss = (Closing Price - Opening Average Price) * Size

Short position: Margin Trading Realized Profit and Loss = (Average Opening Price - Closing Price) *Size

Realized Profit and Loss Calculation (including Capital Costs and Transaction Fees)

Realized Profit and Loss = Closing Profit and Loss-(All Costs)

All costs = Opening Commission Fee + Closing commission Fee + Capital Cost