Future trade

[saidur48]

Crypto Futures Trading: How to Calculate Profit, Loss & Risk

1. Profit & Loss Calculation Formula​

In crypto futures trading, you don’t buy the actual coin — you trade a contract based on the price. Your profit or loss depends on:

Profit / Loss = (Exit Price – Entry Price) × Contract Size × Leverage

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Example:

• You open a long (buy) position on BTC/USDT at: $60,000
• You close the position at: $61,000
• Contract Size = 1 BTC
• Leverage = 10x

Profit = (61,000 - 60,000) × 1 BTC × 10x = $1,000 × 10 = $10,000 Profit

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If the price drops instead:

• Close at: $59,000

Loss = (59,000 - 60,000) × 1 BTC × 10x = (-1,000) × 10 = -$10,000 Loss

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2. Risk Assessment​

Before any futures trade, always calculate the risk:

Risk % Formula:

Risk (%) = (Stop-Loss Distance ÷ Entry Price) × Leverage × 100

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Example:

• Entry Price = $60,000
• Stop-Loss = $59,400
• Leverage = 10x

Risk = [(60,000 - 59,400) ÷ 60,000] × 10 × 100
Risk = (600 ÷ 60,000) × 10 × 100 = 0.01 × 10 × 100 = 10%
Meaning: If the price drops to $59,400, you will lose 10% of your capital on this trade.

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3. Position Sizing Formula​

To control your risk, adjust your position size using:

Position Size = (Account Balance × Risk %) ÷ (Stop-Loss Distance × Leverage)

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Example:

• Account = $5,000
• Max Risk per Trade = 2% ($100)
• Entry at $60,000
• Stop-Loss at $59,400
• Leverage = 10x

Position Size = ($5,000 × 0.02) ÷ [(60,000 - 59,400) × 10]
Position Size = 100 ÷ (600 × 10) = 100 ÷ 6,000 = 0.0167 BTC
So, you can trade 0.0167 BTC safely without risking more than 2% of your account.

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4. Golden Rule: Risk-Reward Ratio​

Always target a reward that is larger than your risk:

• Good Ratio: 1:2 or 1:3
• Example:
  If you risk $100, your target profit should be $200 or more.

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5. Leverage Warning​

Higher leverage = higher risk!
A small price move against your position can wipe out your margin (called liquidation).

Great — here’s a clear and easy-to-follow Crypto Futures Trading Profit, Loss & Risk Assessment Table for you!

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Crypto Futures Trading — Profit, Loss & Risk Table​

Entry Price	Exit Price	Contract Size	Leverage	Profit / Loss Formula	Result
$60,000	$61,000	1 BTC	10x	(61,000 - 60,000) × 1 × 10	+$10,000
$60,000	$59,000	1 BTC	10x	(59,000 - 60,000) × 1 × 10	-$10,000
$2,500	$2,800	1 ETH	5x	(2,800 - 2,500) × 1 × 5	+$1,500
$2,500	$2,400	1 ETH	5x	(2,400 - 2,500) × 1 × 5	-$500

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Risk Assessment Example​

Account Size	Risk % per Trade	Stop-Loss Distance	Leverage	Position Size Formula	Recommended Size
$5,000	2% ($100)	$600 (BTC trade)	10x	($5,000×0.02) ÷ ($600×10) = $100 ÷ $6,000 = 0.0167 BTC	0.0167 BTC
$1,000	3% ($30)	$200 (ETH trade)	5x	($1,000×0.03) ÷ ($200×5) = $30 ÷ $1,000 = 0.03 ETH	0.03 ETH

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Key Points for Safe Futures Trading​

1. Calculate position size before every trade to avoid large losses.
2. Use stop-loss — no exceptions!
3. Don’t risk more than 2-3% of your total capital per trade.
4. Target Risk-Reward ratio of at least 1:2.
5. Avoid very high leverage (20x, 50x) unless you are a professional.

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If you want:​

Excel Sheet Calculator for you where you just enter:

• Entry Price
• Exit Price
• Contract Size
• Leverage
• Account Size

And it will instantly show:

• Profit or Loss,
• Recommended Position Size,
• Liquidation Price!

Great — here’s how to use your Crypto Futures Profit/Loss and Risk Calculator step by step:

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1. Open the Excel File​

• Download and open the file:
  Crypto_Futures_Profit_Loss_and_Risk_Calculator.xlsx

2. Input Your Trade Data​

Field	Description	Example
Entry Price	The price you bought/entered the trade.	100
Exit Price	The price you sold/exited the trade.	110
Position Size	How many coins or contracts you’re trading.	2
Leverage	The leverage used for the futures trade.	10x

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3. Review the Results​

Once you input your data, the calculator will automatically show:

Output	Meaning
Profit / Loss (USD)	Your gain or loss based on the trade.
Return on Investment (ROI)	The percentage gain or loss on your capital.
Liquidation Price Estimate	Approx. price where your position gets liquidated.
Risk-Reward Ratio	Shows whether the trade was high or low risk compared to reward.

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4. Risk Assessment Guide​

• Risk-Reward Ratio > 2.0 — Great setup.
• Risk-Reward Ratio ~ 1.0 — Medium risk.
• Risk-Reward Ratio < 0.7 — Risky trade.

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5. Important Notes​

• Leverage amplifies both gains and losses.
• Always plan your Stop Loss and Take Profit before entering a trade.
• Manage risk per trade (suggested: max 1-2% of your total capital).