Dear Nami Community,
Futures trading is considered as one of the complex types of trading with many indicators and specific formulas, in order to answer questions from the user community and provide more useful information for users in trading Nami Futures and NAO Futures, Nami Futures would like to summarize the formulas of important indicators for Futures trading as follows.
The profit formulas with Futures trading are:
With Long position
With Short positions
2. PnL Percentage (%PnL)
PnL Percentage = PnL / Margin x 100%
3. Trading Fees
Trading Fees = Fee Rate x Open and Close Position Volume
Tip: Depending on the assets the user uses to charge the fee, the fee rate will range from 0.036% to 0.06%. With Nami Futures: 0.036% (NAMI), 0.06% (VNDC and USDT), with NAO Futures: 0.036% (NAO), 0.045% (NAMI, ONUS), 0.06% (VNDC and USDT)
The user places a Long position with the BTC/VNDC pair at the Opening Price of 350,000,000 VNDC and the Closing Price at 400,000,000 VNDC. Position Volume is 35,000,000 VNDC (ie, position's size is 0.1 BTC), Leverage x10 and Margin is 3,500,000 VNDC, users use VNDC as fees.
Transaction fee = 0.06% * (350,000,000 + 400,000,000) = 450,000 VNDC
Profit = (400,000,000-350,000,000) * 0.1 - 450,000 = 4,500,000 VNDC
Profit Ratio = 4,500,000 / 3,500,000 * 100% = 128.57%
4. Activation Price
The activation (trigger) price is the price at which pending orders will be triggered, including open pending orders (limit orders), pending orders to close (SL-TP), add volume limit orders, closed partial position limit orders...
This Activation Price is regulated by the following indicators:
The BTC/VNDC trading pair has a market price of 390,000,000 VNDC, with the trading rules on the Activation Price as follows:
At that time, the minimum price gap will be 0.07% * 390,000,000 = 273,000 VNDC, users need to set the activation price not to differ by more than 273,000 VNDC from the market price, ie no more than 390,000,000 - 273,000 = 389,727,000 VNDC and not less than 390,000,000 + 273,000 = 390,273,000 VNDC
As such, users will need to set trigger prices for pending orders in the following price ranges:
195,000,000 < Activation price < 389,727,000; and
390,273,000 < Activation Price < 789,000,000
5. Liquidation Fee
Liquidation Fee, whose full name is Liquidation Premium, is the cost the user incurs when a position is liquidated to cover the account short in case the Futures account balance is below zero (negative account balance). account). This fee is charged in addition to the position's margin and will be deducted directly from the Futures account balance.
Tip: Trading position will be liquidated when Negative Profit exceeds Margin
Liquidation fee = Liquidation fee rate * Position volume at closing
Note: Currently Nami Futures is applying a 1% liquidation fee rate to all trading contracts.
User has a Short position with BTC/VNDC pair with Volume at Opening is 40,000,000 VNDC and Volume at Closing is 35,000,000 VNDC.
Liquidation fee = 35,000,000 * 1% = 350,000 VNDC
Nami reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
Risk Warning: Futures trading carries substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movements. The information here should not be regarded as financial or investment advice from Nami. All trading strategies are used at your discretion and your own risk. Nami will not be liable to you for any loss that might arise from your use of Futures.
About Nami Corporation
Nami Corp. is a FinTech startup operating in the field of Investment and Technology based on Blockchain technology. Over the years, Nami has developed an ecosystem of key products and services to comprehensively support investors, optimize community benefits with the slogan “Change mindset, make giant steps”.
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