Example: Long

>Suppose the market price of Ethereum is $314.7. The customer believes that the Ethereum price will rise and buys 200 ETH at $314.7. This equates to a position value of $62,940.

Because Omegatradercenter offers leveraged trading, you do not need to put up the full amount in this transaction. Instead, all you need to do is cover a margin equal to 1% of your total position size, or $629.40.

If your prediction is correct and the ETH price rises, you may decide to lock in your profits. The Ethereum price is $354.2 and you close your position

To calculate profit, the difference between the closing price and the opening price of the position must be multiplied by its magnitude.

354.2-314.7=39.5, multiply this by 200 and you get a profit of $7,900 because you had a “long” position.

Example: Short

Bitcoin has a margin requirement of 1% (leverage 1:100), so $74,000 x 1% = $740 must be deposited as margin collateral.

The announcement is disappointing and bitcoin drops to $7,354. Ready to secure my profit, I buy back 10 BTC at $7,354.

Since this is a short position, we calculate the profit by subtracting the closing price ($7,354) from the opening price of the position ($7,400), before multiplying by 10, which is its size.

7,400-7,354=46, multiply this by 10 and you get a profit of $460 because it was a “short” position