How to Calculate Binance Futures Profit

Binance contract profit calculation: Profit = (contract value - opening price) x number of contracts, affected by leverage and position direction.

Binance Futures Profit Calculation
Contract Profit
In Binance Futures trading, the profit calculation formula is as follows:

盈利 = (合約價值 - 開倉價格) x 合約張數

Where:

Contract value: the market value of the current contract Opening price: when opening the position Contract price Number of contracts: Number of contracts traded

Example

Suppose you buy 1 BTC contract at an opening price of US$10,000, and the current BTC contract value is US$10,500. Then, your profit calculation is as follows:

盈利 = (10,500 - 10,000) x 1 = 500 美元

Impact of leverage
Leverage is crucial in contract trading. Leverage magnifies your profits, but it also magnifies your losses. For example, if 10x leverage is used, the profit in the above example will become:

盈利 = (10,500 - 10,000) x 1 x 10 = 5,000 美元

Position direction

• Profit depends on the position direction:

  • Long: Profit when the contract value rises
  • Short: Contract Profit when the value drops

Additional fees

• Contract trading involves other fees, including:

  • Handling fee
  • Funding rate
  • Liquidation fee
• These fees affect the final profit

Risk MANAGEMENT

• Contract trading carries a high level of risk:
• Understand leverage and volatility risks
• Take appropriate risk management measures

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