When it comes to futures trading, one of the most important things to know is how to calculate your profits. Otherwise, you could end up making some serious mistakes that could cost you a lot of money.
Thankfully, calculating your profits on Binance Futures is actually quite simple. In this article, we’re going to show you how to do it so that you can start making money from your trades.
First of all, you need to know what your “entry price” is. This is the price at which you bought (or sold) your contract.
You can find this information on the order page for your trade.
The next thing you need to know is the “liquidation price”. This is the price at which your position will be automatically closed if the market moves against you and goes below this level.
You can find this information on the order page for your trade as well.
Now that you know these two prices, calculating your profit is simply a matter of subtracting your entry price from your liquidation price. For example, let’s say you bought a contract at an entry price of $10, and the liquidation price was $9.
This means that if the market goes against you and hits $9, your position will be closed and you will have made a profit of $1 per contract.
It’s important to remember that you can only make a profit if the market goes against you and hits your liquidation price. If the market doesn’t go against you, then you will either break even or lose money, depending on where the market ends up.
In conclusion, calculating your profits on Binance Futures is quite simple. Just subtract your entry price from your liquidation price and that’s it!.