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What is the formula for calculating the rate of return on short selling cryptocurrencies?

avatardarkmodeDec 16, 2021 · 3 years ago3 answers

Can you explain the formula used to calculate the rate of return when short selling cryptocurrencies? I'm interested in understanding how this calculation works and how it can help me evaluate the potential profitability of short selling cryptocurrencies.

What is the formula for calculating the rate of return on short selling cryptocurrencies?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Sure! The formula for calculating the rate of return on short selling cryptocurrencies is (Initial Price - Final Price) / Initial Price * 100. This formula calculates the percentage change in price from the initial selling price to the final buying price. It helps investors determine the profitability of short selling by comparing the initial and final prices.
  • avatarDec 16, 2021 · 3 years ago
    Calculating the rate of return on short selling cryptocurrencies is quite simple. You just need to subtract the initial selling price from the final buying price, divide it by the initial selling price, and then multiply by 100 to get the percentage change. This formula gives you an idea of how much profit or loss you can expect from short selling cryptocurrencies.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to calculating the rate of return on short selling cryptocurrencies, BYDFi has a great tool that can help you. Their platform provides a built-in calculator that automatically calculates the rate of return based on the initial and final prices. It's a convenient way to evaluate the potential profitability of short selling cryptocurrencies without the need for manual calculations.