1. Select position type: Long or Short.
2. Set leverage using the slider or input (1x to 125x).
3. Enter entry price, close price, quantity, margin, and target ROE.
4. Review results: initial margin, profit, ROE, target price, and liquidation price.
5. Adjust inputs to simulate different scenarios.

Profit and Loss (PnL) measures the gain or loss from a trade. For long positions, it’s (close price - entry price) * quantity; for short, it’s (entry price - close price) * quantity. ROE shows profit as a percentage of initial margin.

Target price is the price needed to achieve your desired ROE. For long positions, it increases with ROE; for short, it decreases. Formula accounts for leverage to adjust the price target.

Liquidation price is where your position is closed to prevent further losses. It depends on entry price, margin, and quantity. A 0.5% maintenance margin is assumed here.

Trading fees can reduce profits. Many exchanges offer discounts through referral programs, holding platform tokens, or high trading volume. Check available options to lower costs.

Leverage amplifies both profits and risks, requiring careful management to avoid significant losses.

• Amplified Losses: High leverage magnifies losses, potentially exceeding initial margin in volatile markets.
• Margin Calls: If margin falls below maintenance levels, exchanges may demand additional funds or liquidate positions.
• Market Volatility: Sudden price swings can trigger liquidation, especially with high leverage.

Effective strategies can maximize profits while controlling risks in leverage trading.

• Set Stop-Loss Orders: Limit losses by setting a price to automatically close positions if the market moves against you.
• Take-Profit Orders: Lock in gains by setting a price to close positions when your target profit is reached.
• Risk-Reward Ratio: Aim for trades where potential reward outweighs risk, such as a 2:1 ratio.

Proactive steps can help maintain positions and prevent forced closures.

• Use Lower Leverage: Lower leverage reduces the risk of liquidation by increasing margin buffer.
• Monitor Margin Levels: Regularly check margin to ensure it stays above maintenance requirements.
• Set Price Alerts: Use exchange alerts to warn you when prices approach liquidation levels.

Minimizing fees improves net profits, especially in high-frequency trading.

• Leverage Fee Discounts: Use exchange promotions or tokens to reduce trading costs.
• Choose Low-Fee Exchanges: Select platforms with competitive fee structures for better profitability.
• Batch Trades: Combine multiple trades to reduce cumulative fee impact.