Create a Python function to calculate the profit for Spot Market

API Spot/Margin API
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1

I have a Python method that calculate the profit after taking into account the commission structure. However, it fails to replicate the exact values from Binance trade history. For example I bought ETH/USDT using LIMIT order at a price of 2595with a buy amount of 57.609 USDT. Then I sold using LIMIT order at a price of 2700. As per my understanding the precision value for this pair is 8 but still the calculator fails to give correct results. Below is the code I am using.

def calculate_profit_after_commission_binance(buy_price: float, buy_amount_usdt: float, sell_price: float, 
                                       order_type_buy: str = 'MARKET', order_type_sell: str = 'MARKET',
                                       fee_rate_maker: float = 0.001, fee_rate_taker: float = 0.001) -> float:
    if order_type_buy == 'MARKET':
        buy_fee_rate = fee_rate_taker
    else:
        buy_fee_rate = fee_rate_maker

    if order_type_sell == 'MARKET':
        sell_fee_rate = fee_rate_taker
    else:
        sell_fee_rate = fee_rate_maker

    # Calculate the amount of asset bought
    asset_quantity = buy_amount_usdt / buy_price
    
    # Deduct commission on the asset bought
    asset_quantity_available = asset_quantity * (1 - buy_fee_rate)
    
    # Selling commission in USDT
    sell_commission = asset_quantity_available * sell_price * sell_fee_rate

    # Profit after sell commission
    profit = asset_quantity_available * sell_price - sell_commission
    
    return profit

Screenshot 2024-09-02 at 9.15.24 PM
Screenshot 2024-09-02 at 9.15.24 PM2842×326 44.1 KB

2

def calculate_profit_after_commission_binance(buy_price: float, buy_amount_usdt: float, sell_price: float,
order_type_buy: str = ‘MARKET’, order_type_sell: str = ‘MARKET’,
fee_rate_maker: float = 0.001, fee_rate_taker: float = 0.001) → float:
if order_type_buy == ‘MARKET’:
buy_fee_rate = fee_rate_taker
else:
buy_fee_rate = fee_rate_maker

if order_type_sell == 'MARKET':
    sell_fee_rate = fee_rate_taker
else:
    sell_fee_rate = fee_rate_maker

# Calculate the amount of asset bought
asset_quantity = buy_amount_usdt / buy_price

# Deduct commission on the asset bought
asset_quantity_available = asset_quantity * (1 - buy_fee_rate)

# Selling commission in USDT
sell_commission = asset_quantity_available * sell_price * sell_fee_rate

# Error: Did not subtract initial investment to find net profit
# profit = asset_quantity_available * sell_price - sell_commission
# Corrected: Subtract the initial amount spent to buy the asset to get the actual net profit
gross_sell_amount = asset_quantity_available * sell_price  # Total amount received from selling the asset
net_sell_amount = gross_sell_amount - sell_commission      # Net amount after selling commission
net_profit = net_sell_amount - buy_amount_usdt             # Correction: Subtracting initial amount spent to find net profit

return net_profit

  • the total amount received from selling the asset before any fees was not explicitly defined in your original code, which made it difficult to see the transaction flow.

  • Net Sell Amount is the amount after subtracting the selling commission. It is computed to clarify how much is left after the sell fee.

  • Net Profit Calculation was calculated without subtracting the initial buy amount. I’ve corrected this by subtracting the buy_amount_usdt from the net_sell_amount to yield the actual profit after all transactions and fees.

3

As per the Binance trade history the sell side commission does not match with the code result. Secondly, the profit value is also different as shown in the screenshot from Binance trade history.

4

Are you using BNB to pay fee or other coins? Since BNB coing payments are discounted at 0.075% against the other coin payments of 0.1%.

5

No, I don’t own BNB