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, and for Ripple-Bitcoin 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 Base Currency = ( Futures Exit Price - Futures Entry Price ) * Position Size
| EXAMPLE: BITCOIN-DOLLAR FUTURES |
- Trading requires a bitcoin deposit to the Bitcoin-Dollar Futures margin account
- Buy 10,000 Futures at 5,000 USD per bitcoin, sell 10,000 Futures at 6,000 USD per bitcoin. Profit is ( 1 / 5,000 - 1 / 6,000 ) * 10,000 = 0.33 bitcoin
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| EXAMPLE: ETHER-DOLLAR FUTURES |
- Trading requires an ETH deposit to the Ether-Dollar Futures margin account
- Buy 10,000 Futures at 800 USD per Ether, sell 10,000 Futures at 900 USD per Ether. Profit is ( 1 / 800 - 1 / 900 ) * 10,000 = 1.38 Eth
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| EXAMPLE: LITECOIN-DOLLAR FUTURES |
- Trading requires an LTC deposit to the Litecoin-Dollar Futures margin account
- Buy 10,000 Contracts at 90 USD per Litecoin, sell 10,000 Contracts at 95 USD per Litecoin. Profit is ( 1 / 90 - 1 / 95 ) * 10,000 = 5.848 LTC
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| EXAMPLE: RIPPLE-DOLLAR FUTURES |
- Trading requires a Ripple XRP deposit to the Ripple-Dollar Futures margin account
- Buy 10,000 Futures at 0.25 USD per Ripple, sell 10,000 Futures at 0.30 USD per Ripple. Profit is ( 1 / 0.25 - 1 / 0.30 ) * 10,000 = 6,667 XRP
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Additional trade examples are provided here.
