How does BitMEX calculate profit and loss?

3 answers

• Dec 27, 2021 · 3 years ago
  Sure! When it comes to calculating profit and loss on BitMEX, it's important to understand the concept of leverage. BitMEX allows traders to use leverage, which means they can control larger positions with a smaller amount of capital. The profit or loss is calculated based on the difference between the entry price and the exit price, taking into account the leverage used. It's important to note that trading on BitMEX involves high risk due to the volatile nature of cryptocurrencies, so it's crucial to have a solid risk management strategy in place.
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• Dec 27, 2021 · 3 years ago
  Calculating profit and loss on BitMEX can be a bit complex, but let me break it down for you. The formula to calculate profit is: (Exit Price - Entry Price) * Quantity. Similarly, the formula to calculate loss is: (Entry Price - Exit Price) * Quantity. The quantity refers to the number of contracts traded. Keep in mind that this calculation doesn't take into account fees and funding costs, so it's important to factor those in as well. If you're new to BitMEX, I recommend starting with a small position and gradually increasing your exposure as you gain more experience and confidence in your trading strategy.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we understand the importance of calculating profit and loss accurately. On BitMEX, profit and loss are calculated in real-time based on the mark price, which is the average of the prices on multiple exchanges. This ensures fairness and transparency in the calculation process. It's worth mentioning that BitMEX also offers a calculator tool on their website, which can help you estimate your potential profit or loss before placing a trade. Remember to always do your own research and consult with professionals before making any investment decisions.
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