RE: Steemit Crypto Academy Contest / S13W6: Leverage in cryptocurrencies
Greetings, I don't have much to say, rather than you've presented a nice work, however there are certain errors that I will like to bring to your attention.
Consequently, we're supposed to calculate for the Net loss, whereas the formula presented is for Net profit...
Then, going by your the formula;
loan interest = initial investment x % of leverage.
Net loss = 18,000 USDT - (12,000 USDT + (12,000 USDT x 0.1)) = 31,200 USDT
Net loss = 18,000 USDT - 13,200 USDT = 4,800, and not 31,200 USDT...
And, then again if both profit and loss where achieved, without loan interest, why deduce loan again?
The difference however is that, in the net loss, we are supposed to add our loss to our expenses, which includes our capital and loan interest. Therefore, our net loss becomes;
Net Loss = Loss + Capital expense (investment) + loan interest.
Net Loss = 18,000 USDT + 12,000 USDT + (0.1 x 12,000)
Net Loss = 18,000 USDT + 12,000 USDT + 1,200 USDT
Net Loss = 31,200 USDT
Thank you very much my dear friend. Now , I understand that i should remove the word without loan interest.
I hope other calculatios are correct.
Please correct me if I'm wrong.
It seems you still left out your negative (-) sign in your net loss calculations...
You have used net profit to calculate net loss...
Net Profit = Profit - (investment + Loan interest)
as you are to subtract your investment and the loan interest to have your Net profit.
However the Net loss is different, you have to add all your expenses which are you investment and loan interest, therefore, the formula becomes;
Net Loss = Loss + Capital expense (investment) + loan interest.
Only then can you get the loss of 31,200 USDT, and not the;
Net Profit = Profit - (investment + Loan interest)
You've used in calculating your net loss.
Thanks dear. ✅