Profit or loss is always calculated in the collateral currency for the contract.
For Bitcoin-Dollar Futures and Ripple-Bitcoin Futures, this is BTC. For Ether-Dollar Futures, this is ETH, for Litecoin-Dollar Futures this is LTC, for Bitcoin Cash-Dollar Futures, this is BCH and for Ripple-Dollar Futures, this is XRP.
For inverse Futures, profit or loss is calculated as:
Profit or Loss in Base Currency = ( 1 / Futures Entry Price - 1 / Futures Exit Price ) * Position Size
For vanilla Futures, profit or loss is calculated as:
Profit or Loss in Quote Currency = ( Futures Exit Price - Futures Entry Price ) * Position Size
|EXAMPLE: BITCOIN-DOLLAR FUTURES||
|EXAMPLE: ETHER-DOLLAR FUTURES||
|EXAMPLE: LITECOIN-DOLLAR FUTURES||
|EXAMPLE: RIPPLE-DOLLAR FUTURES||
|EXAMPLE: BITCOINCASH-DOLLAR FUTURES||
Buying Futures will generally result in a profit if the price of the underlying increases:
|EXAMPLE: LEVERAGED LONG||Assume you buy 10,000 Bitcoin-Dollar Futures at 5,000 USD. The price increases and you exit at 6,000 USD. Your profit is ( 1 / 5,000 - 1 / 6,000 ) * 10,000 = 0.33 bitcoin, or about 0.33 * 6,000 USD = 2,000 USD at the current price.|
Selling Futures will generally result in a profit if the price of the underlying falls:
|EXAMPLE: LEVERAGED SHORT||Assume you sell 10,000 Bitcoin-Dollar Futures at 5,000 USD. The price falls and you exit at 4,000 USD. Your profit is ( 1 / 5,000 - 1 / 4,000 ) * -10,000 = 0.5 bitcoin, or about 0.50 * 4,000 USD = 2,000 USD at the current price.|
In both scenarios you can lose if the price does not go your way. Please make sure you understand the risks associated with trading on the platform.
Additional trade examples are provided here.
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.