How to calculate AscendEX contract profit

Calculating AscendEX contract profit involves factors like price, size, leverage, margin, and the difference between opening and closing prices.

Dec 01, 2024 at 01:49 pm

How to Calculate AscendEX Contract Profit

AscendEX is a popular cryptocurrency exchange that offers a variety of products and services, including contract trading. Contract trading is a form of leveraged trading, which means that you can trade with more capital than you have on deposit. This can magnify your profits, but it can also magnify your losses.

To calculate your profit from an AscendEX contract, you need to take into account the following factors:

• The contract price: This is the price of the underlying asset at the time you open the contract.
• The contract size: This is the number of units of the underlying asset that you are trading.
• The leverage: This is the amount of capital that you are using to trade.
• The margin: This is the amount of capital that you have on deposit with the exchange.
• The profit/loss: This is the difference between the contract price and the price at which you close the contract.

Here are the steps on how to calculate AscendEX contract profit:

1. Calculate the contract value. The contract value is the contract price multiplied by the contract size. For example, if the contract price is $10,000 and the contract size is 100, then the contract value is $1,000,000.
2. Calculate the margin requirement. The margin requirement is the minimum amount of capital that you need to have on deposit with the exchange in order to open a contract. The margin requirement is typically a percentage of the contract value. For example, if the margin requirement is 10%, then you would need to have $100,000 on deposit with the exchange in order to open a contract worth $1,000,000.
3. Calculate the profit/loss. The profit/loss is the difference between the contract price and the price at which you close the contract. For example, if you open a contract at $10,000 and close it at $11,000, then your profit would be $1,000.
4. Calculate the return on investment (ROI). The ROI is the profit/loss divided by the margin requirement. For example, if you made a profit of $1,000 and the margin requirement was $100,000, then your ROI would be 1%.

It is important to remember that contract trading is a leveraged product, which means that it can magnify your profits and losses. It is important to trade responsibly and to understand the risks involved before you start trading.