Open Cost calculation

Calculating the cost of opening a Limit Order:

1. Calculate the Initial Margin

Initial Margin

= Notional Value / Leverage Multiplier

=(102,990.0*1 BTC)/20x

=5,149.50

2. Calculate Open Loss

Open Loss = Number of Contracts × Absolute Value {min [0, Order Direction × (Mark Price — Order Price)]}

Direction of order: 1 for long order；-1 for short order

Open Loss of long order

= Number of Contract * Absolute Value {min[0, Direction of order * (Mark price — Order Price)]}

= 1 * Absolute Value {min[0, 1 * (102,988.4- 102,990.0)]}

= 1 * Absolute Value {min[0, (-1.6)]}

= 1 * 1.6

= 1.6

Open loss occurs when you place a long order.

Open Loss of Short Order

= Number of Contract * Absolute Value {min[0, Direction of order * (Mark Price — Order Price)]}

= 1 * Absolute Value {min[0, -1 * (102,988.4- 102,990.0)]}

= 1 * Absolute Value {min[0, 1.6]}

= 1 * 0

= 0

Open loss does not occur when you place a Short order.

3. Calculate the cost of Opening a Position

Since there is no Open Loss when you place a Short order, the cost of opening a Short order is equal to the Initial Margin.

Cost of opening a Long Order

= 5,149.50+ 1.6

=5,151.1

Cost of opening a Short Order

=5,149.50 + 0

= 5,149.50

Since an Open Loss occurs when you place a Long order, it costs more to place a Long order. In addition to the Initial Margin, you must also take into account the Open Loss.

Calculating the cost of opening a Market Order:

1. Calculate Estimated Entry Price

Long order estimated entry price = ask[0] * (1 + 0.05%); Short order estimated entry price = max(bid[0], mark price)

• Estimated entry price of long order

=ask[0]*(1 + 0.05%)

=102,946.8*(1 + 0.05%)

= 102,998.27

*[0]：Level 1 price

• Assuming price of short order

= max(bid[0], mark price)

= max (102,946.9, 102,941.0)

= 102,946.9

*[0]：Level 1 price

2. Calculate the Initial Margin

Initial Margin = Notional Value / Leverage Multiplier

• Initial margin for long order

= Estimated entry price of long order * Number of Contracts / Leverage Multiplier

=102,998.27 * 1 /20

=5,149.9135

• Initial margin for short order

= Estimated entry price of short order * Number of Contracts / Leverage Multiplier

=102,946.9 * 1/20

=5,147.345

3. Calculate the Open Loss

Open Loss = Number of Contract * Absolute Value {min[0, direction of order * (mark price — order price)]}

Direction of order: 1 for long order；-1 for short order

• Open loss for long order

= Number of Contract * Absolute Value {min[0, direction of order * (mark price — order price)]}

= 1 * Absolute Value {min[0, 1 * (102,941.0–102,998.27)]}

= 1 * Absolute Value {min[0, -57.27]}

= 1 * 57.27

= 57.27

An Open Loss occurs when you place a Long order.

• Open loss for short order

= Number of Contract * Absolute Value {min[0, direction of order * (mark price — order price)]}

= 1 * Absolute Value {min[0, -1 * (102,941.0–102,946.9)]}

= 1 * Absolute Value {min[0, 5.9]}

= 1 * 0

= 0

An Open Loss does not occur when you place a Short order.

4. Calculating the cost of Opening a Position

Since Open Loss occurs when you place a Long order, it costs more to place a Long order. In addition to the Initial Margin, you must also take into account the Open Loss.

• Cost of opening a Long Order

=5,149.9135+57.27

=5,207.1835

• Cost of opening a Short Order

=5,147.345+0

=5,147.345

Since there is no Open Loss when you place a short order, the cost of opening a Short order is equal to the to the Initial Margin. Initial Margin.