Bybit’s reverse perpetual contract uses USD quotation, but all profits and losses will be calculated in the currency corresponding to the contract (BTC/ETH/XRP/EOS).

The value of each contract is $1.

The perpetual contract quotation is designed in this way to facilitate traders with a minimum of 1 USD for contract transactions, rather than using 0.0000xxBTC to measure.

Long position profit and loss = number of contracts x (1/entry price-1/exit price)

Take Bybit’s BTCUSD reverse perpetual contract as an example.

If a trader buys 10,000 contracts at the price of 8,000 USD.

It actually means selling 10,000 USD and buying the same value of BTC (10,000/8000), which is 1.25 BTC.

Suppose the trader decides to close all positions at the price of 12,500 USD.

This means that he bought back a contract worth 10,000 USD and sold the same value of BTC (10,000/12,500), which is equivalent to 0.8 BTC.

Long position profit and loss = quote currency value at the time of entry-quote currency value at the time of exit

= 1.25BTC-0.8BTC

= 0.45BTC

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