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How to calculate Poloniex contract income

Poloniex contract income can be calculated by determining the contract size, value, premium or discount, and profit or loss based on the difference between entry and exit contract values.

Nov 25, 2024 at 10:02 am

How to Calculate Poloniex Contract Income

Poloniex is a cryptocurrency exchange that offers a variety of trading options, including contract trading. Contract trading allows traders to speculate on the future price of a cryptocurrency without having to own the underlying asset.

To calculate your Poloniex contract income, you need to take the following steps:

  1. Determine the contract size. The contract size is the amount of the underlying asset that is represented by each contract. For example, a Bitcoin contract on Poloniex represents 1 BTC.
  2. Calculate the contract value. The contract value is the current market price of the underlying asset multiplied by the contract size. For example, if the current market price of Bitcoin is $10,000, then the contract value of a Bitcoin contract would be $10,000 x 1 = $10,000.
  3. Calculate the contract premium or discount. The contract premium or discount is the difference between the contract value and the spot price of the underlying asset. The spot price is the current market price of the underlying asset for immediate delivery. If the contract value is greater than the spot price, then the contract is said to be trading at a premium. If the contract value is less than the spot price, then the contract is said to be trading at a discount.
  4. Calculate your profit or loss. Your profit or loss on a contract trade is determined by the difference between the contract value at the time you enter the trade and the contract value at the time you exit the trade. If you sell a contract for a higher price than you bought it, then you will make a profit. If you sell a contract for a lower price than you bought it, then you will incur a loss.

Here is an example of how to calculate your Poloniex contract income:

  • You buy a Bitcoin contract for $10,000.
  • The spot price of Bitcoin rises to $11,000.
  • You sell your Bitcoin contract for $11,000.

Your profit on this trade would be $1,000, which is the difference between the contract value at the time you entered the trade ($10,000) and the contract value at the time you exited the trade ($11,000).

It is important to note that contract trading is a leveraged product, which means that you can lose more money than you initially invest. Therefore, it is important to understand the risks involved before you start trading contracts.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

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