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ProBit Global contract calculation formula
ProBit Global's contract calculation formula enables traders to determine their profit or loss based on entry/exit prices, leverage, and contract size.
Nov 24, 2024 at 09:41 am
ProBit Global's contract calculation formula is a set of mathematical equations used to determine the profit or loss of a trader's contract position. The formula takes into account the following factors:
- The contract's entry price
- The contract's exit price
- The contract's leverage
- The contract's size
The formula is as follows:
Profit or Loss = (Exit Price - Entry Price) * Leverage * SizeFor example, if a trader enters a contract with an entry price of $10,000, an exit price of $11,000, a leverage of 10x, and a size of 1,000, the profit would be:
Profit = (11,000 - 10,000) * 10 * 1,000 = $10,000The formula can also be used to calculate the loss if the exit price is lower than the entry price. For example, if the exit price is $9,000, the loss would be:
Loss = (9,000 - 10,000) * 10 * 1,000 = -$10,000Steps to Calculate Contract Profit or Loss:- Determine the contract's entry price. This is the price at which the trader entered the contract.
- Determine the contract's exit price. This is the price at which the trader exited the contract.
- Determine the contract's leverage. This is the amount of leverage that the trader used to enter the contract.
- Determine the contract's size. This is the number of contracts that the trader entered.
- Plug the values into the formula. The formula is as follows:
Profit or Loss = (Exit Price - Entry Price) * Leverage * Size- Calculate the profit or loss. The profit or loss is the result of the formula.
Let's say a trader enters a contract with an entry price of $10,000, an exit price of $11,000, a leverage of 10x, and a size of 1,000. The profit would be:
Profit = (11,000 - 10,000) * 10 * 1,000 = $10,000Important Notes:- The formula is only valid for contracts that are closed at the same price. If the contract is closed at a different price, the profit or loss will be different.
- The formula does not take into account any fees or commissions that may be charged by the exchange.
- The formula is only an approximation of the profit or loss. The actual profit or loss may be different due to factors such as slippage and market volatility.
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