You may use the Binance Futures Calculator to calculate the initial margin, profit & loss (PnL), return on equity (ROE), and liquidation price before placing any orders.
1. Click on the [Calculator] icon located on the Order Entry Panel (right-side of the futures trading interface).
2. You can choose [PNL], [Target Price], [Liquidation Price], [Max Open], or [Open Price].
3. Select [Long] or [Short]. Next, enter the entry price, exit price, and quantity of your order. You can choose the leverage level by moving your cursor along the slider bar.
4. Click [Calculate]. The result for the initial margin, PnL, and ROE will be displayed on the right.
Notes for calculating P&L, initial margin, and ROE:
USDT-Margined Contracts
- Initial Margin = Quantity * Entry Price * IMR
- IMR = 1 / leverage
- PnL:
- Long = (Exit Price - Entry Price) * Quantity
- Short = (Entry Price - Exit Price) * Quantity
- ROE% = PnL / Initial Margin = side * (1 - entry price / exit price) / IMR
- Target price:
- Long target price = entry price * ( ROE% / leverage + 1 )
- Short target price = entry price * ( 1 - ROE% / leverage )
Coin-Margined Contracts
- Initial margin = Qty * contract_multiplier * IMR / entry price
- IMR = 1 / leverage
- PNL = Trade direction * Qty * contract_multiplier * (1 / entry price - 1 / exit price)
- Trade direction:long is 1,short is -1
- ROE% = PNL / initial margin = side * (1 - entry price / exit price) / IMR
- Target Price = side * entry price / (side - ROE * IMR)