Welcome to this introduction to two new Deribit calculator tools.
As with other tools pages we can toggle light or dark mode with the icon at the top of the page. I’ll be using dark mode today.
First, we have the Trade Calculator, which allows us to enter trade parameters and see calculations like our leverage, stop loss price based on the amount we want to risk, liquidation price, and potential profit.
Our entry, exit, stop loss, and liquidation price are also conveniently displayed on the chart as well, so we can make sure that they lie in sensible places based on your market outlook.
It’s worth mentioning that currently everything displayed with these tools is for illustration only. No trade executions can be done from this page.
For this example we’re going to enter a starting balance of 1 BTC, and we’ll be entering the details for a potential long position on the bitcoin perpetual contract. We’d like to buy with a position size of $350,000 and risk a quarter of the account, so 0.25 BTC. We will enter when the price of the perpetual hits $35,000 and take profit when the price of the perpetual hits $40,000.
Based on these inputs, the calculator gives us these outputs.
The account leverage is given as 10x. This is calculated by dividing the position size in bitcoin, by the starting account balance. Our position size of $350,000 with an entry of $35,000 is equal to 10 BTC, and our starting balance is 1 BTC, so the effective leverage is 10x.
Next we have the risk percentage, which simply shows how much of the starting account balance we are risking if we get out at the stop loss price.
The stop loss price is shown next. This uses our entry price and position size to calculate where we would need to place a stop loss in order to only be risking the amount we entered as the amount to risk. In this example we’ve told the tool we only want to risk 0.25 BTC, so it’s using our position size of $350,000 and entry price of $35,000, to tell us where we need to place our stop loss in order to achieve this.
If we change any of the three input parameters of position size, amount to risk, and entry price, the stop price will update accordingly. For example, if we change the risk amount to say 0.5 BTC, the stop loss price will update.
As we’ve increased the amount we’re happy to risk, and left the other two parameters the same, the stop price has moved further away from our entry.
The estimated liquidation price is shown next. This uses the position size, entry price, and starting account balance, to give the point at which the position would be liquidated. It’s worth noting this ignores the amount you have chosen to risk, and is based solely on your total starting balance. So it is where your account would be liquidated if you did not place a stop loss at all.
The last two outputs show the profit that will be made if our trade is successful and moves from the entry price to the exit price. It is shown in both BTC and USD.
Moving things on the chart
As well as changing the values in the form, we can also drag the lines on the chart to change the values. For example if we want to change the exit price, we can click and hold the exit price box here, then drag it to the desired price level. Once we let go, the exit price and profit figures in the calculator update.
You can drag the other boxes too, which will update other figures in the calculator.
Moving the entry will also move the stop price and liquidation price in unison.
If we move the stop price on the chart, the amount to risk will update. The further away from the entry we move the stop price, the more we are risking by keeping the same position. The closer to the entry we move the stop price, the less we are risking with the same position size.
If we move the liquidation price on the chart, the position size will update based on the starting account balance. The further away the liquidation price, the smaller the position size must be to ensure that’s where the starting balance would be depleted. It’s worth mentioning that in practice anything that alters your account equity will have an effect on your liquidation price. This includes deposits, withdrawals, funding and fees, or any other trades you execute in the same account.
Real time prices
One last feature to mention before we move onto the second calculator. It’s possible to set either the entry price or exit price to track the real time price of the selected instrument. For example if we want the entry price to keep updating to the current price of the perpetual, we can toggle this setting on here.
Now the entry price and any calculations based on it will continuously update based on the current price.
Additionally we have the Size Calculator, which simply allows us to calculate either our required balance, position size in BTC, or our leverage, based on the values we enter for the other two parameters.
So imagine we want to know the balance we need to deposit if we want to open a position size of 1 BTC using 5x leverage. Then we make sure balance is selected, then enter a position size of 1, and leverage of 5. The balance will then automatically update to the correct amount. In this case 0.2 BTC.
Or if we want to know what position size we should open if we have a balance of 0.085 and want to use 25x leverage. We make sure position size is selected, then enter the balance of 0.085 and leverage of 25. The position size then automatically updates to the correct size. In this case 2.125 BTC.
That’s it for this quick overview. We hope you find these tools useful, and if you have any feedback or suggestions then just let us know.
Try it out here.
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