How can I accurately calculate my returns on leverage when using BitMEX?

3 answers

• Sargent MunchSep 29, 2023 · 2 years ago
  Calculating returns on leverage can be a bit tricky, but I'll break it down for you. First, you need to understand the concept of leverage. When you trade on BitMEX with leverage, you're essentially borrowing funds to increase your trading position. The leverage ratio determines how much you can borrow. To calculate your returns, you need to consider both your profit or loss and the leverage ratio. Start by calculating your profit or loss on a trade. This is simply the difference between the price at which you bought and the price at which you sold, multiplied by the quantity of the asset. Next, calculate the leverage ratio. This is the amount of borrowed funds divided by your own capital. Finally, multiply your profit or loss by the leverage ratio to get your actual returns. Keep in mind that leverage amplifies both profits and losses, so it's important to use it wisely and manage your risk effectively.
  917

  459
• THPNov 09, 2021 · 4 years ago
  Calculating returns on leverage can be a bit confusing, but don't worry, I'll explain it in simple terms. Let's say you bought 1 Bitcoin at $10,000 and sold it at $11,000. That's a profit of $1,000. Now, let's say you were using 10x leverage. This means you were trading with 10 times the amount of your own capital. So, instead of trading with $10,000, you were actually trading with $100,000. To calculate your returns, you need to multiply your profit by the leverage ratio. In this case, $1,000 multiplied by 10 is $10,000. That's your actual return on leverage. Keep in mind that leverage can also amplify losses, so it's important to be cautious and only use leverage if you fully understand the risks involved.
  717

  239
• Rudra-NayakApr 07, 2025 · 7 months ago
  Calculating returns on leverage when using BitMEX is similar to other exchanges. First, you need to calculate your profit or loss on a trade. This is the difference between the price at which you bought and the price at which you sold, multiplied by the quantity of the asset. Next, you need to calculate the leverage ratio. This is the amount of borrowed funds divided by your own capital. Finally, multiply your profit or loss by the leverage ratio to get your actual returns. It's important to note that BitMEX offers different leverage options, so make sure to choose the right leverage ratio based on your risk tolerance and trading strategy.
  647

  162