How to calculate Deepcoin contract income

The funding rate on Deepcoin is a fee paid by traders with long positions to those with short positions, typically a small percentage of the contract price.

Nov 25, 2024 at 07:45 pm

How to calculate Deepcoin contract income

Deepcoin is a cryptocurrency exchange that offers a variety of trading options, including contract trading. Contract trading is a type of derivatives trading that allows traders to speculate on the future price of an asset without owning the underlying asset.

To calculate your Deepcoin contract income, you will need to know the following information:

• The contract size
• The contract price
• The margin requirement
• The leverage
• The contract duration
• The funding rate

Step 1: Calculate the contract size

The contract size is the amount of the underlying asset that is represented by each contract. For example, if you are trading a Bitcoin contract, the contract size might be 1 BTC.

Step 2: Calculate the contract price

The contract price is the price of the underlying asset at the time that the contract is opened. For example, if you are trading a Bitcoin contract and the current price of Bitcoin is $10,000, the contract price might be $10,000.

Step 3: Calculate the margin requirement

The margin requirement is the amount of money that you need to have in your account in order to open a contract. The margin requirement is typically a percentage of the contract size. For example, if the margin requirement is 10% and the contract size is 1 BTC, you will need to have $1,000 in your account in order to open the contract.

Step 4: Calculate the leverage

The leverage is the amount of money that you are borrowing from Deepcoin in order to open a contract. The leverage is typically a multiple of the margin requirement. For example, if the leverage is 10x and the margin requirement is 10%, you will be borrowing $9,000 from Deepcoin in order to open the contract.

Step 5: Calculate the contract duration

The contract duration is the length of time that the contract will be open. Contracts can have a duration of anywhere from a few hours to several months.

Step 6: Calculate the funding rate

The funding rate is a fee that is paid by traders who are holding long positions to traders who are holding short positions. The funding rate is typically a small percentage of the contract price.

Step 7: Calculate your profit or loss

Your profit or loss on a contract is calculated by multiplying the contract size by the difference between the contract price and the settlement price. If the settlement price is higher than the contract price, you will make a profit. If the settlement price is lower than the contract price, you will lose money.

Example

Let's say that you open a Bitcoin contract with the following parameters:

• Contract size: 1 BTC
• Contract price: $10,000
• Margin requirement: 10%
• Leverage: 10x
• Contract duration: 1 month
• Funding rate: 0.01% per day

To calculate your profit or loss, you would first need to calculate the following:

• The margin requirement: $10,000 * 10% = $1,000
• The leverage: $1,000 * 10x = $10,000
• The contract duration: 1 month = 30 days
• The funding rate: $10,000 * 0.01% * 30 days = $3

Your profit or loss would then be calculated by multiplying the contract size by the difference between the contract price and the settlement price. For example, if the settlement price is $11,000, your profit would be $1,000. If the settlement price is $9,000, your loss would be $1,000.