Full set of calculation formulas for contract leverage, margin, and PnL (memorization version)

I. Margin formulas

1. Isolated margin
Opening margin = Opening price × Position size ÷ Leverage

2. Margin utilization ratio
Margin ratio = Used margin ÷ Total account funds × 100%

II. PnL calculation formulas

Long (bullish)

Unrealized PnL = (Current price - Entry price) × Position size

Short (bearish)

Unrealized PnL = (Entry price - Current price) × Position size

Converted account PnL ratio

PnL percentage = Unrealized PnL ÷ Total account funds × 100%

III. Approximate liquidation/bursting positions formulas (easy to remember)

Available funds < 0 triggers liquidation

Available funds = Total funds - Used margin + Floating PnL

IV. Real leverage risk conversion (key to memorize)

Actual adverse move loss = Market move magnitude × Leverage

Example: 10x leverage, market moves against you by 2%, account loses 20%

V. Trading fee cost formulas

Total trading costs = Opening fee + Closing fee + Funding rate

For frequent short-term and high-frequency trading, fees will continuously erode principal

Core memorization lines

Margin = price quantity ÷ leverage; long/short PnL = price difference;
Leverage amplifies move magnitude—adverse volatility hits harder;
If available funds turn negative, liquidation clears everything immediately;
Fees stack up and drain—frequent operations reduce your principal.

Risk control iron rules (combined with your previous position rules)

1. Leverage for daily operations ≤ 10x
2. Total contract used margin must not exceed 30% of total funds
3. Per-trade contract loss must be kept within 2% of total funds
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