Introduction
Futures contracts are among the most common derivatives in cryptocurrency trading. These contracts have predefined settlement dates, typically categorized as weekly, bi-weekly, or quarterly contracts. For traders using OKEX, understanding how to calculate profits from these futures contracts is crucial. This guide will break down the profit calculation methods, provide real-world examples, and explain key concepts to help you maximize your returns.
How Are OKEX Futures Contract Profits Calculated?
The profit formulas for long (buy) and short (sell) positions differ slightly:
Long Position Profit Formula
🔹 Profit = Contract Face Value × (1/Entry Price − 1/Exit Price) × Number of Contracts
Short Position Profit Formula
🔹 Profit = Contract Face Value × (1/Exit Price − 1/Entry Price) × Number of Contracts
Key Notes:
- Settled Positions: If the contract has undergone settlement, the profit is calculated as pre-settlement profit + post-settlement profit.
- Unsettled Positions: Directly apply the above formulas.
Practical Examples
Case 1: Position Not Settled
- Entry Price: 0.233
- Exit Price: 0.2361
- Contracts: 1
Calculation:
((10 / 0.233) - (10 / 0.2361) × 1 = 0.5635) XRP
Case 2: Position After Settlement
- Settlement Price: 0.2447
- Exit Price: 0.2435
- Contracts: 1
Bill Display:
((10 / 0.2447) - (10 / 0.2435) × 1 = -0.2208)
Actual Profit:
((10 / 0.237) - (10 / 0.2435) × 1 = 1.1263)
Case 3: Position Settled + Rebalanced
- First Entry (Settled): 0.276
- Second Entry: 0.2741
- Exit Price: 0.2567
Bill Display:
((10 / 0.275) - (10 / 0.2567) × 2 = -5.1846)
Actual Profit:
((10 / 0.277) - (10 / 0.2567) × 2 = -5.7097)
How to Trade OKEX Futures Contracts?
- Select Contract Type: Choose weekly, bi-weekly, or quarterly contracts based on your trading horizon.
- Determine Direction: Go long (buy) if bullish, short (sell) if bearish.
Leverage & Margin:
- Cross Margin: All positions share pooled equity. Requires 100%+ margin ratio.
- Isolated Margin: Each position’s margin is calculated independently.
- Monitor Risk: Positions face liquidation if equity falls below 10% (10x leverage) or 20% (20x leverage).
- Settlement: Unclosed positions are settled at the index price on expiry.
👉 Learn advanced strategies for futures trading
FAQ
Q1: What happens if my position is liquidated?
A: You lose the margin allocated to that position. Cross-margin mode may affect other open positions.
Q2: Can I change margin modes mid-trade?
A: Only when no active positions or orders exist.
Q3: How is the settlement price determined?
A: It’s based on the spot index price at the time of expiry.
Q4: Why are my bill profits different from actual profits?
A: Bills reflect post-settlement benchmarks, while actual profits use your entry/exit prices.
Key Takeaways
- Use the correct formula (long/short) for profit calculations.
- Monitor settlement benchmarks for accurate P&L tracking.
- Leverage increases both gains and risks—trade cautiously.
For further details, explore OKEX’s official documentation or consult trading experts.