Hello everyone, I'm new here and I need help with margin trading. I just can't figure out how to calculate losses in margin trading
Lets say we have this trade :
Type: long/ Leverage: 3/ Margin: 1102.25/ Amount:0.49 BTC /Open price: 6613.5/ Close price: 6540.1/ Stop loss: 6457 Fee: 2.88
How much should be the loss and how do you calculate this correctly?
Thanks
(Open price - Close price) x (Position size) = Profit/Loss. So in this case: $73.40 x 0.49 BTC = $35.97 Loss.
Then account for $2.88 trading fees = $38.85 Total loss.
I'm slightly confused though because $1102.25 collateral at 3x leverage should buy 0.5 BTC. A 0.5 BTC position would yield a $39.58 loss.
Well that's how I thought it will be calculated and the loss will be $40 , but the exchange deducted $963.33 from my account as loss (P\L)!
that's why I was confused and thought maybe I'm missing something!
why did I lose that much?
That doesn't sound right at all.
What exchange? Have you contacted support? If you closed position as stated and realized a $963.33 loss, you should contact them ASAP.
Recovering 10-15% of initial equity might be normal
if you got margin called. For example, on Bitfinex, when your account falls below 15% of the initial position value, you get force-liquidated. But at 3x leverage, you shouldn't have been anywhere close to a margin call.