[00:00] welcome back guys to the right channel this will be the new educational video for beginners how to work with the binance calculator let's dive in this video will be definitely useful for
[00:15] new users who just started their journey in crypto and the futures traded because the calculator this will be really helpful too to understand the size of your positions how to count it and what
[00:27] the profit or losses you can get because sometimes the people open randomly and total don't the same what they're doing you need to open binance futures i would like to show you on the algo uzt trading pair example i add to my balance 100 easy to count and here near your balance you can
[00:45] find out the small small option calculator so you press it here and we got a few options like pnl target price liquidation price max open open price let's start with pnl you can open long or short i
[00:57] would like to show you on long example but for short guys everything works absolutely the same way we just not waste the time not repeat the same information so let's use the 10x leverage
[01:10] so just easy to count and understand the logic so for example you got on your balance your hundred dollar you want to open long position with 10x leverage for algorithm trading peer the
[01:25] current price for that token is 14 cents 24 we add the entry price 14 23 exit price the exit price will be let say 20 cents and we can add the quantity The quantity you should add multiply your balance to your leverage If I gather the balance with set as leverage the quantity will be And press calculate
[01:52] So take a look. If you will open position now with this turn price, with exit target 20 cents, with this quantity 10x leverage $100, your initial margin will be $100, P&L will be $400, and ROI will be 405%.
[02:13] So this is a way how you can count where, for example, to exit from your trade. Let's say $0.16, the P&L will be $124. Also, to understand the losses, you don't need to switch to short position, you just can count here.
[02:29] For example, your entry $14.23 and exit price, so let's say the price dumped it to $0.14. We calculate it, your losses will be $0.16 if the price dumped it to $0.14.
[02:43] 13.55 your loss will be 47 a dollar or 47 percent so this is how you can count the p l let's take a look on the target so with this option you can count uh that target where you
[02:58] need to fix the profit if you wait some specific percentage so let's say entry price 14.22 i would like to open my position with 10x leverage I would like to fix the profit when the price hits 20 percent calculate so the binance gives me the target where i need to fix the profit to get a 20 profit with this current
[03:23] entry price 13.22 i need to close my position at 14.50 to get 20 profit pretty simple liquidation price you can use the equilator margin or cross margin what's the difference between two of these
[03:38] option how we can go and read on the binance let's say we use the isolated margin so we use 10x leverage current price for entry the quantity 1000 my balance 100 i calculate my liquidation price if
[03:56] i open long now with 10x leverage at this current price without a stop loss my liquidation so i will lose 100 percent balance will be 13 cents but guys i highly recommend you not to trade without a stop
[04:11] losses or trade that amount of money what you can afford to lose 100 if you trade without stop loss by liquidation let's go to the cross margin so for example on your balance you got 500 dollar
[04:25] got it you open long at this current price but only for $100 with 10x it's $1000 but on balance you get like $500
[04:37] you calculate your liquidation price in this case will be $710.22 but you will lose all your money not only position you will lose all your balance of the account on the futures so that different between it is in a simple word difference between the cost
[04:57] and the margin max open position that's leverage less price balance hundred dollar calculated so you can open national position to one thousand dollar
[05:09] or actual to 737 although open price this feature is really useful to count what will be your average entry also you can use the best calculator for example
[05:23] to count that the DCA strategy if you DCA strategy entry you know on the spot so let's say you buy an algo at 1422 let's say $50 your second position was like
[05:38] 12 cents 45 $50 third position you buy it 945 to $20 you got a three positions
[05:51] 1322 12 45 945 your investment like 100 $120 calculate your average entry price will be 12 cents 44 so that it's totally for free I highly recommend the use of
[06:04] bad instrument if you just start your journey in a future trading it will help you a lot to understand what you're doing what the size of position you need to open your trade with the leverage what the difference between the leverage and the liquidation price and between the leverages
[06:19] targets and a piano i hope you like this video share with your friends subscribe channel hit the like button but skin show bottom don't forget your my diagram channel see you next time guys