How to use AAX’s futures calculator? – AAX Help Center

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.

Instructions:

Step 1: Locate AAX Calculator on the top right of the Order:

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Step 2: Using the Calculator, you may select for calculations either

(1) Expected PnL

(2) Closing Price

(3) Liquidation Price

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* Notes that trading fees and funding fees are not included in the calculations

Example 1

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.

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Example 2

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.