How to calculate profit on Poloniex contracts

To calculate profit on Poloniex perpetual contracts, consider both realized profits and unrealized profits based on the entry and exit prices, as well as margin funding fees and the contract size.

Dec 03, 2024 at 07:58 am

How to Calculate Profit on Poloniex Contracts

Leveraged trading, also known as margin trading, is available on Poloniex. It enables traders to enter positions with a higher potential return, but it is also accompanied by increased risk. Understanding how to calculate profits on Poloniex contracts is crucial for effective trading.

Calculating Profit on Poloniex Contracts

Calculating profit on Poloniex perpetual contracts involves several steps. It's important to consider both realized profits (profits that have been locked in) and unrealized profits (potential profits based on current market conditions).

Steps to Calculate Realized Profit:

Determine the Margin Funding Fee: This fee is charged to maintain leveraged trades. It can be found on the specific contract page under "Funding Fee." The funding fee is recalculated every 8 hours.
Calculate the Initial Margin: This is the amount of capital required to open a contract position. It is expressed as a percentage of the contract value. For example, if the initial margin is 1%, and the contract value is $100,000, the initial margin would be $1,000.
Determine the Exit Price: This is the price at which the contract position is closed.
Calculate the Profit: The profit (or loss) is calculated as follows:

Profit = [(Exit Price - Entry Price) * Contract Size] - Margin Funding Fees

Calculating Unrealized Profit:

Determine the Mark Price: This is the reference price used for calculating unrealized profit. It is typically the weighted average price of recent trades.
Calculate the Unrealized Profit: This is based on the current market conditions and the difference between the mark price and the entry price.

Profit = [(Mark Price - Entry Price) * Contract Size]

Example:

Let's say you enter a long BTC contract with a leverage of 10x. The entry price is $50,000, the contract size is 0.1 BTC, and the margin funding fee is 0.02%.

After 24 hours, the BTC price rises to $51,000.

Realized Profit: (51,000 - 50,000) * 0.1 - 0.02% = $10

Without closing the position, the BTC price drops to $48,000.

Unrealized Profit: (48,000 - 50,000) * 0.1 = -$20

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.

Fear & Greed Index

Trade Now

Biggest Gainers

MOVE

$0.1599

34.65%

Trade Now
BANANAS31

$0.0106

34.33%

Trade Now
TAI

$0.0908

32.88%

Trade Now
SEI

$0.2699

32.64%

Trade Now
MOCA

$0.0836

31.34%

Trade Now
NPC

$0.0138

29.83%

Trade Now

Latest Crypto News

Texas, Bitcoin, and the Reserve: How the Lone Star State is Pioneering Crypto Adoption
2025-06-24 10:45:12
DOGE Rally: Bullish Surge or Last Shakeout?
2025-06-24 10:25:13
Solaxy's Uniswap Debut: A New Crypto Listing Shaking Up the Market
2025-06-24 10:25:13
Coinbase, Tokenized Trading, and the US Senate: A New Era for Crypto?
2025-06-24 10:45:12
Bitcoin, Crypto Signals, and Hyperliquid: What's the Hype?
2025-06-24 11:05:12
Fadillah's Uzbekistan Mission: Sparking Cooperation in Energy, Tourism, and Education
2025-06-24 11:05:12

Related knowledge

How to use the price slope to filter the false breakthrough signal of the contract?

Jun 20,2025 at 06:56pm

Understanding the Concept of Price Slope in Contract TradingIn contract trading, especially within cryptocurrency derivatives markets, price slope refers to the rate at which the price changes over a specific time period. It helps traders assess the strength and sustainability of a trend. A steep slope may indicate strong momentum, while a shallow slope...

How to determine the expected volatility of the contract through the volatility cone?

Jun 19,2025 at 12:28pm

Understanding the Basics of Volatility in Cryptocurrency ContractsIn the realm of cryptocurrency trading, volatility is a key metric that traders use to assess potential risk and reward. When dealing with futures contracts, understanding how volatile an asset might become over time is crucial for position sizing, risk management, and strategy developmen...

How to formulate a contract intraday trading plan in combination with the pivot point system?

Jun 21,2025 at 03:42pm

Understanding the Basics of Pivot Points in Cryptocurrency TradingPivot points are technical analysis tools used by traders to identify potential support and resistance levels. These levels are calculated using the previous day's high, low, and closing prices. In the context of cryptocurrency trading, where markets operate 24/7, pivot points help trader...

How to adjust the contract position ratio through the price fluctuation entropy?

Jun 22,2025 at 11:42am

Understanding Price Fluctuation Entropy in Cryptocurrency ContractsIn the world of cryptocurrency futures trading, price fluctuation entropy is a relatively new concept used to measure market volatility and uncertainty. It derives from information theory, where entropy refers to the degree of randomness or unpredictability in a system. In crypto contrac...

How to use the volume swing indicator to predict the contract volume-price divergence?

Jun 18,2025 at 11:42pm

Understanding the Volume Swing IndicatorThe volume swing indicator is a technical analysis tool used primarily in cryptocurrency trading to evaluate changes in volume over time. Unlike price-based indicators, this metric focuses solely on trading volume, which can provide early signals about potential market reversals or continuations. The key idea behi...

How to use the Gaussian channel to set the contract trend tracking stop loss?

Jun 18,2025 at 09:21pm

Understanding the Gaussian Channel in Cryptocurrency TradingThe Gaussian channel is a technical indicator used primarily in financial markets, including cryptocurrency trading, to identify trends and potential reversal points. It is based on statistical principles derived from the normal distribution, commonly known as the Gaussian distribution or bell ...