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Trading Pnl Example
Trading PnL = Position Size * (1 - Sell Price/Buy Price)

Example

Andrew is long the Binance BTC funding rate:
Andrew enters the long position at a fixed rate of 2.00% with $100,000 notional.
If the fixed rate of the market goes to 2.50%, Andrew would have a Trading PnL of
$100,000 * (1 - 2%/2.5%) = $20,000
If the fixed rate of the market goes to 1.50%, Andrew would have a Trading PnL of
$100,000 * (1 - 2%/1.5%) = -$33,333
Using leverage will amplify your upside, but cap your downside. If using 10x leverage, you can only lose up to your deposited collateral. For example, if Andrew used 10x leverage on his position, his deposited collateral would be $10,000. Hence, Andrew's loss is capped at $10,000.
You can only lose as much as your collateral
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Vice versa, if Jenny is short the Binance BTC funding rate:
Jenny enters the short position at a fixed rate of 2.00% with $100,000 notional.
If the fixed rate of the market goes to 2.50%, Jenny would have a Trading PnL of
-$100,000 * (1 - 2%/2.5%) = -$20,000
If Jenny put on leverage of 10x, then her collateral is only $10,000, and her loss is capped at -$10,000.
If the fixed rate of the market goes to 1.50%, Jenny would have a Trading PnL of
-$100,000 * (1 - 2%/1.5%) = $33,333
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