Practical application of #margin_trading_using 20x leverage
MAAM1
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Bullish
$BTTC How is cross margin trading done with 20x leverage? Data: - Initial capital (Margin): 10 dollars - Leverage: 20x (i.e., you can trade an amount = 10 × 20 = 200 dollars) - Purchase price: 0.00000067 dollars - Selling price: 0.00000074 dollars 1. How many coins can you buy? Available amount = Capital × Leverage = 200 dollars Number of coins = 200 ÷ 0.00000067 ≈ 298,507,463 BTTC coins 2. How much will you get from the amount upon selling? Selling value = 298,507,463 × 0.00000074 ≈ 220.895 dollars 3. Calculate the total profit before fees and interests: Profit = Selling value - Trading amount Profit = 220.895 - 200 = 20.895 dollars 4. Calculate the net profit after deducting the initial capital: You used 10 dollars of your own money, and the rest was a loan from the platform (repaying capital + interests + fees): - Net profit: 20.895 dollars (your profit above your original capital of 10 dollars) 5. Fees and interests: Trading fees (approximately 0.1% per transaction): - Purchase fee: 200 × 0.1% = 0.20 dollars - Selling fee: 220.895 × 0.1% ≈ 0.22 dollars - Total fees: 0.42 dollars Borrowing interest (approximate, varies by currency and time): - Suppose you kept the trade for one day, and the daily borrowing interest is, for example, 0.02%: - Daily interest = 200 × 0.02% = 0.04 dollars (a very small amount) 6. Final profit after all deductions: - Total profit: 20.895 dollars - Minus fees and interest: 0.42 + 0.04 = 0.46 dollars Net profit = 20.895 - 0.46 = about 20.43 dollars
Done
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