Based on the direction of your position — Long (Buy) or Short (Sell) — the formulas used to calculate the order cost of the Limit Order and Market Order will be different.
Order cost does not include funding fee. Funding fees will be calculated separately and deducted for traders based on current market conditions
Long (Buy) Position
Example
Trader A open a Long position of 1 BTC at VNDC 100,000,000 with 10x leverage.
The Order Cost is calculated as follows:
Initial Margin = (100000000 * 1) / 10 = 10,000,000 VNDC
Fee to Open position = 100000000 * 1 * 0.04% = 40,000 VNDC
Bankruptcy Price = [100000000 * (10 - 1)] / 10 = 90,000,000 VNDC
Fee to Close position = 1 * 90000000 * 0.04% = 36,000 VNDC
In the case, Order Cost = 10,000,000 + 40,000 + 36,000 = 10,076,000 VNDC
Revisiting Trader A’s case:
Order Quantity = (Order Cost * Leverage) / [Order Price * (0.0008 * Leverage + 0.9996)]
= (10076000 * 10) / [100000000 * (0.0008 * 10 + 0.9996) = 1 BTC.
Short (Sell) Position
Example
Trader B open a Short position of 1 BTC at VNDC 100,000,000 with 10x leverage.
The Order Cost is calculated as follows:
Initial Margin = (100000000 * 1) / 10 = 10,000,000 VNDC
Fee to Open position = 100000000 * 1 * 0.04% = 40,000 VNDC
Bankruptcy Price = (100000000 * 11) / 10 = 110,000,000 VNDC
Fee to Close position = 1 * 110000000 * 0.04% = 44,000 VNDC
In the case, Order Cost = 10,000,000 + 40,000 + 44,000 = 10,084,000 VNDC
Revisiting Trader B’s case:
Order Quantity = (Order Cost * Leverage) / [Order Price * (0.0008 * Leverage + 1.0004)]
= (10084000 * 10) / [100000000 * (0.0008 * 10 + 1.0004)] = 1 BTC
Note
- The Order Cost ( Initial Margin + Two-Way Taker Fee ) required has to be smaller than or equal to the available balance.
Open Loss
When there is an unfavorable difference between the markup price and the position opening price, the trader will need to add an additional Open Loss to his position. Open Loss will be added to the margin of the position, short blocking the immediate liquidation caused by the price difference.