Poloniex contract calculation formula

Poloniex's futures contract value, calculated using its proprietary formula, considers the contract price, size, funding rate, and time held, leading to potential differences in pricing and profit/loss compared to other exchanges.

Nov 27, 2024 at 09:26 pm

Poloniex Contract Calculation Formula

Introduction

Poloniex is a popular cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and futures trading. Futures contracts are a type of derivative that allows traders to speculate on the future price of an asset.

Poloniex uses a unique calculation formula for its futures contracts, which is different from the formulas used by other exchanges. This can result in different prices and profit/loss calculations for the same contract on different exchanges.

Understanding the Poloniex Contract Calculation Formula

The Poloniex contract calculation formula is as follows:

Contract Value = (Contract Price * Contract Size) * [1 + (Funding Rate * Time Held)]

Where:

Contract Value is the total value of the contract
Contract Price is the current market price of the asset
Contract Size is the number of contracts being traded
Funding Rate is the rate charged or paid to traders to maintain their positions
Time Held is the amount of time the contract has been held

Example:

Let's say you want to buy 1 BTC futures contract on Poloniex. The current market price of BTC is $10,000 and the contract size is 1 BTC. The funding rate is currently 0.01% per hour.

To calculate the contract value, we use the following formula:

Contract Value = ($10,000 * 1 BTC) * [1 + (0.01% * 24)]

Contract Value = $10,024

This means that the total value of the contract is $10,024.

Factors Affecting the Contract Value

The following factors can affect the contract value:

Contract Price: The contract price is the current market price of the asset. As the market price changes, so will the contract value.
Contract Size: The contract size is the number of contracts being traded. A larger contract size will result in a higher contract value.
Funding Rate: The funding rate is the rate charged or paid to traders to maintain their positions. A positive funding rate will increase the contract value, while a negative funding rate will decrease the contract value.
Time Held: The time held is the amount of time the contract has been held. The longer the contract is held, the greater the impact of the funding rate.

Conclusion

The Poloniex contract calculation formula is a unique way to calculate the value of futures contracts. This formula can be used to determine the potential profit or loss for a given contract.

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

DHN

$3.51

99.06%

Trade Now
AIC

$0.1637

72.72%

Trade Now
JOE

$0.0552

19.17%

Trade Now
DOG

$0.0045

17.99%

Trade Now
W

$0.0704

17.38%

Trade Now
CONX

$48.61

15.96%

Trade Now

Latest Crypto News

CESS, TGE, and Decentralized AI: A New Era for Data Sovereignty
2025-06-27 03:52:13
Dogecoin's Comeback vs. Little Pepe's 50x Potential: Where's the Smart Money Going?
2025-06-27 02:50:12
Cryptos, Troller Cat, and ROI: A New Era of Meme Coin Investing?
2025-06-27 02:32:05
USDT on TRON: Stablecoin Supremacy in the Digital Age
2025-06-27 03:52:13
Trump, Crypto, and Stablecoins: A New York Minute on the Digital Frontier
2025-06-27 02:54:00
WLFI Token's Transferability, USD1 Stablecoin Audit, and Trump's Crypto Play: What's the Deal?
2025-06-27 03:56:47

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 ...