Profit calculation

When trading on Gravix, it is important to correctly calculate the potential profit that you can get from your trades. To do this, it is necessary to take into account several factors, such as the current price of opening and closing a position, the collateral used, the level of leverage, as well as the commissions for opening and closing positions.

Here are the formulas for calculating PnL (Profit and Loss) for short and long positions:

1. Calculation of PnL for long positions:

$PnL_{\,Long} = ( \cfrac {Close\,price} {Open\,price} - 1) * (Collateral - Open\,fee) * Leverage$

Where:

• Close price - the price at which the position was closed

• Open price - the price at which the position was opened

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - a commission charged for opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

1. Trader's PnL for long positions after paying all fees:

$PnL_{\,Long} = ( \cfrac {Close\,price} {Open\,price} - 1) * (Collateral - Open\,fee) * Leverage - Funding fee - Borrow fee - Close\,fee$

Where:

• Close price - the price at which the position was closed

• Open price - the price at which the position was opened

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - a commission charged for opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

• Funding fee - a fee that some traders pay to others depending on the change in the price of an asset

• Borrow fee - the commission that a trader pays for using borrowed funds

• Close fee - the commission charged for closing a position

1. Calculation of PnL for short positions:

$PnL_{\,Short} = -( \cfrac {Close\,price} {Open\,price} - 1) * (Collateral - Open\,fee) * Leverage$

Where:

• Close price - the price at which the position was closed

• Open price - the price at which the position was opened

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - the commission charged for opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

1. Trader's profit for short positions after paying all fees:

$PnL_{\,Short} = -( \cfrac {Close\,price} {Open\,price} - 1) * (Collateral - Open\,fee) * Leverage - Funding fee - Borrow fee - Close\,fee$

Where:

• Close price - the price at which the position was closed

• Open price - the price at which the position was opened

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - the commission charged for opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

• Funding fee - a fee that some traders pay to others depending on the change in the price of an asset

• Borrow fee - the commission that the trader pays for using borrowed funds

• Close fee - the commission charged for closing a position