AAX Calculator allows futures traders to use position information (position margin, leverage, average entry/exit price and contract quantity) to calculate Expected PnL, Closing Price, and Liquidation Price. This allows traders to better understand their trading goals and also manage their position better.
Step 1: Locate AAX Calculator on the top right of the Order:
Step 2: Using the Calculator, you may select for calculations either
(1) Expected PnL
(2) Closing Price
(3) Liquidation Price
* Notes that trading fees and funding fees are not included in the calculations
Expected PnL calculation: Calculating position profit and loss (excluding fees)
Traders can calculate the Margin, Profit/Loss, Profit/Loss% and Returns of Equity (ROE) by inputting the Leverage, Amount of Contracts, Open Price and Closing Price.
Margin: The required order cost when opening position
PnL: Profit and loss of the position that excludes fees
Formula: Amount of Contract (1/open price - 1/closing price)
Returns of Equity (ROE): Ratio of return on assets to initial margin used in the position
Formula: P&L / Initial Margin
Traders can enter the following value to calculate the required Margin, Profit/Loss, and Returns of Equity (ROE)
Example: Buy Long, Leverage: 10 x, Qty: 200, Entry Price: $7,000, and Close Price: $8,000
For convenience's sake, traders can also see the size of the position and open price for the current contract type.
Closing Price: Calculate the target price when the position reaches the specified rate of ROE % (excluding fees)
Example: Buy Long, 5 x, Open Price: $7,000, ROE %: 20
Entering the value above, we can calculate that for the position to reach a 20% ROE, the targeted take profit/exit price has to be set at around 7292 USD.
Similarly, traders can refer to the bottom part of the calculator window.
Liquidation Price: Calculating the liquidation price while being on cross margin mode
Example: Buy Long, Leverage: 10 x, Qty: 1000, Entry Price: $7,000
Entering the set of value in the calculator below shows the Liquidation Price as $6392.50
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