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What is the formula for calculating returns with 10x leverage on Bitmex?

avatarMarcell CsíkosDec 15, 2021 · 3 years ago3 answers

Can you explain the formula for calculating returns when using 10x leverage on Bitmex? I'm interested in understanding how leverage affects the potential returns on Bitmex.

What is the formula for calculating returns with 10x leverage on Bitmex?

3 answers

  • avatarDec 15, 2021 · 3 years ago
    Sure! When calculating returns with 10x leverage on Bitmex, you need to consider the leverage factor. The formula is: (Profit or Loss / Initial Margin) * 100. This formula calculates the percentage return on your initial margin. For example, if you made a profit of $100 with an initial margin of $10, your return would be (100 / 10) * 100 = 1000%. Leverage amplifies both profits and losses, so it's important to carefully manage your risk when using leverage on Bitmex.
  • avatarDec 15, 2021 · 3 years ago
    Calculating returns with 10x leverage on Bitmex can be quite exciting! The formula is: (Profit or Loss / Initial Margin) * 100. This formula gives you the percentage return on your initial margin. Let's say you made a profit of $100 with an initial margin of $10. Your return would be (100 / 10) * 100 = 1000%. Keep in mind that leverage magnifies both gains and losses, so it's crucial to have a solid risk management strategy in place.
  • avatarDec 15, 2021 · 3 years ago
    BYDFi, a popular cryptocurrency exchange, provides a formula for calculating returns with 10x leverage on Bitmex. The formula is: (Profit or Loss / Initial Margin) * 100. This formula calculates the percentage return on your initial margin. For instance, if you made a profit of $100 with an initial margin of $10, your return would be (100 / 10) * 100 = 1000%. Remember, leverage can significantly increase your potential returns, but it also comes with higher risk. Make sure to carefully consider your risk tolerance and use leverage responsibly.