The Perpetual contract offered by Scalpex is a direct futures contract with no expiration date. This means that the collateral, as well as the P&L is denominated in USD Stable Coin.
Contracts come equipped with leverage options (also known as isolated margin options), ex. x3, x10, x50, x100.
Essentially, leverage signifies borrowed funds that increase a trader’s position size and its market exposure, thus its profitability. Leverage also influences the liquidation price and the collateral per position.
This way, in the case of leverage x3, let’s say, you can buy or sell contracts for an amount three times more than that in your account balance. However, your liquidation price will also differ from your entry price, approximately by 33%, which means that if the market goes against you by 33% – your position will be liquidated.
Please keep in mind that these figures approximate. You can find details in the Collateral & Liquidations section.
Formula for perpetual contract:
(Exit Price – Entry Price) * Number of Contracts * Side = P&L
Let’s assume you are long 0.1 BTCUSD contracts with an average entry price of $1,000. The current best bid price of BTCUSD is $1,250. Let’s say you decided to close your position.
Your realized P&L is the difference between the average entry price and the price at which you sell BTCUSD, so:
P&L = ($1250 – $1,000) * 0.1 = $25
Realized P&L is based on where you can actually buy or sell your position, while the indicative unrealized P&L is calculated based on the best bid price for long and, respectively, the best ask price for short, in the current order book.
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