Essential Technical Formulas for Successful Binance Trading đđč
Maximize your trading precision and risk management on Binance with these essential formulas! đ§źđ°
1ïžâŁ Leverage Formula đ:
âĄïž Leverage Ratio = Total Position Size / Your Capital
đ Example: With $1,000 capital and a $10,000 position, the leverage ratio is 10x.
2ïžâŁ Stop-Loss Calculation đš:
âĄïž Stop-Loss Price = Entry Price - (Entry Price Ă Stop-Loss Percentage)
đ Example: For an entry price of $50 and a stop-loss percentage of 2%, the stop-loss price is $49 (50 - (50 Ă 0.02)).
3ïžâŁ Risk Management Formula đĄïž:
âĄïž Risk per Trade = (Capital Ă Risk Percentage) / Leverage
đ Example: With $1,000 capital, risking 2% per trade, and 10x leverage, the risk per trade is $20 ((1000 Ă 0.02) / 10).
4ïžâŁ Profit Target Calculation đŻ:
âĄïž Profit Target Price = Entry Price + (Entry Price Ă Target Percentage)
đ Example: For an entry price of $50 and a target percentage of 5%, the profit target price is $52.50 (50 + (50 Ă 0.05)).
5ïžâŁ Daily Return Calculation đ
:
âĄïž Daily Return = (Ending Balance - Starting Balance) / Starting Balance Ă 100
đ Example: If the starting balance is $1,000 and the ending balance is $1,020, the daily return is 2% ((1020 - 1000) / 1000 Ă 100).
đ§ Utilize these formulas to enhance your trading strategies, manage risks better, and set clearer profit and loss targets on Binance! Consistent use of these strategies can help in achieving long-term success. đđ
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