Understanding Opponent Price in Trading
Opponent price refers to the price offered by your trading counterpart. It means placing an order at the opponent's quoted price—buying at the current ask price or selling at the current bid price. This ensures immediate execution based on price priority principles.
For example, in Bitcoin perpetual contracts, the opponent price represents the level at which the counterparty (buyer or seller) is willing to transact at "Buy 1" or "Sell 1" in the order book.
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Calculating Profit/Loss in Perpetual Contracts Accounts
Unrealized P&L (Floating Profit/Loss)
This reflects the current盈亏 of open positions, fluctuating with the latest成交价:
- Long Position Formula:
(1/Entry Price - 1/Mark Price) × Contract Quantity × Contract Face Value - Short Position Formula:
(1/Mark Price - 1/Entry Price) × Contract Quantity × Contract Face Value
Example:
If holding 100 BTC contracts (face value: $100) with an average entry of $5,000/BTC and current price at $8,000:
Unrealized P&L = (1/5000 - 1/8000) × 100 × 100 = 0.75 BTC
Realized P&L (Closed Position Profit/Loss)
This includes closed positions'盈亏, fees, funding rates, and settlements:
- Long Position Formula:
(1/Entry Price - 1/Close Price) × Closed Quantity × Face Value - Short Position Formula:
(1/Close Price - 1/Entry Price) × Closed Quantity × Face Value
Example:
Closing the above position at $4,000/BTC:
Realized P&L = (1/5000 - 1/4000) × 100 × 100 = -0.5 BTC
Trading Strategies for Perpetual Contracts
Market Analysis: Distinguish between trending (unidirectional) and ranging (sideways) markets.
- Trending markets favor directional trades (buy lows in uptrends/sell highs in downtrends).
- Ranging markets suit short-term scalping ("buy low, sell high" within a range).
Risk Management:
- Avoid leveraged trading without technical proficiency.
- Use stop-loss orders to mitigate volatility risks.
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FAQ Section
Q: Why does opponent price guarantee instant execution?
A: It matches the counterparty's immediate bid/ask, prioritizing price over order queue position.
Q: How is funding rate affecting perpetual contracts?
A: Periodic payments between longs/shorts to align contract price with spot, calculated every 8 hours.
Q: What’s the difference between mark price and last price?
A: Mark price (used for P&L) prevents manipulation by using aggregated data; last price is the final trade price.
Risk Disclosure
Cryptocurrency trading involves significant风险. This content is educational and not financial advice. Comply with local regulations and invest responsibly. Never allocate funds you cannot afford to lose.
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