How to calculate the profit of bitcoin leverage
bitcoin futures contracts, for example, at $10000, use $500 to open 100 times leverage, which will rise to $10500, which means an increase of 5%. 100 times leverage means 5 times profit and $2500.
Suppose there are two investors, a and B, who buy US $1 million in the form of margin and firm offer respectively at the price of Euro: US $0.653. Since a uses the foreign exchange margin trading method, its principal will need 6500 euro (assuming the margin ratio is 1%)
b adopts the firm offer trading mode, so it needs 650000 euro. As the exchange rate when selling is Euro: US dollar = 0.648, investors a and B can make profits:
A: 100 × 653-0.648) = 5000 euros
B:100 × 653-0.648) = 5000 euros
On the contrary, if the exchange rate at the time of selling becomes Euro: USD = 0.668, then their losses are respectively:A: 100 × 668-653) = 15000 euro & gt; 6500, with a loss of 6500
B:100 × 668-653) = 15000 euros
extended data:
the size of business risk is often measured by operating leverage. The size of operating leverage is generally expressed by operating leverage, which is the ratio between the rate of change of earnings and the rate of change of sales before calculating interest and income tax
firstly, it reflects the relationship between the change of profit and the change of sales volume
Second, the greater the leverage factor, the greater the leverage and riskThird, the fixed cost remains the same, the larger the sales volume is, the smaller the operating leverage is, and the smaller the operating risk is; on the contrary, the opposite is true
Fourthly, when the sales reach the critical point of profit and loss, the operating leverage tends to infinitygenerally, enterprises can rece operating leverage and operating risk by increasing sales, recing unit variable cost and fixed cost
Suppose there are two investors, a and B, who buy US $1 million in the form of margin and firm offer respectively at the price of Euro: US $0.653. Since a uses the foreign exchange margin trading method, its principal will need 6500 euro (assuming the margin ratio is 1%). B is a firm offer, so it needs 650000 euros. Because the exchange rate when selling is Euro: US dollar = 0.648, investors a and B can make profits:
A: 100 × 653-0.648) = 5000 Euro
b: 100 × 653-0.648) = 5000 Euro
on the contrary, if the exchange rate at the time of selling becomes Euro: US dollar = 0.668, then their losses are respectively:
A: 100 × 668-653) = 15000 euro & gt; 6500 euro, loss 6500 Euro
b: 100 × 668-0.653) = 15000 Euro
through the comparison between foreign exchange margin and firm offer trading, it is obvious that foreign exchange margin plays a good leverage role, and a higher investment yield can be achieved with less investment, and even if there is a loss in margin trading, the biggest loss is the amount of margin< br />
