Why a higher Binance balance doesn’t always mean you made a profit

Earlier than judging your Binance account’s performance, separate cash you added from cash the account earned.

Right here’s a hypothetical example, using USD values all through:

• You start with an empty account and deposit $2,000.
• Later, you deposit another $1,500.
• Your present internet account value is $3,000.
• You haven’t withdrawn anything.

Your stability rose from $2,000 to $3,000. But your complete contribution was $three,500, so your account result is a $500 loss.

For an account measured from its empty start line:

Current internet account worth + external withdrawals - exterior deposits = lifetime account end result.

When reviewing Binance data, the account boundary matters. A switch from Spot to Futures moves cash inside your Binance account. Counting it as another deposit when reviewing the whole account would double-count the same funds.

A number of different checks help:

• Embrace all wallets inside the account boundary you chose.
• Use a constant reporting foreign money.
• Account for related liabilities when calculating internet value.
• Don’t subtract fees once more if they are already mirrored in ending equity.
• Keep in mind that the end result consists of modifications in open holdings, so it differs from realised buying and selling revenue.

For a month-to-month assessment, subtract the opening internet account value as properly.

This provides a monetary outcome. A significant proportion return additionally needs to account for when deposits and withdrawals happened.

When reconciling your Binance history, which causes probably the most confusion: inner transfers, charges, funding funds or open positions?

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