Hello!
I’m building a strategy backtesting system but I have a question about isolated wallet in a position and how its handled Binance side.
Lets say we are at leverage 50 and buying 0.001 btc at 44309.3, if we don’t take open loss into account and keep it simple we will have 44309.3 * 0.001 / 50 = 0.886186 to put in isolated wallet.
But if we close this position at 44358.7 to getting back to 0 in position amount, with the same formula we get 0.887174.
So my question is: Where goes the 0.000988 diff ? I think I am missing something like isolated wallet is just a shadow value taken from the wallet balance or something like that, I already try to see if this is only computed with the actual position amount but seems to not be that.
I don’t know if I was clear enough but thanks if someone help me to understand this.
Unfortunately, I am not understanding your question.
The Isolated Margin account is considered separate from your Cross Margin account and there are no interactions across these two accounts.
Lets say we are at leverage 50 and buying 0.001 btc at 44309.3, if we don’t take open loss into account and keep it simple we will have 44309.3 * 0.001 / 50 = 0.886186 to put in isolated wallet.
But if we close this position at 44358.7 to getting back to 0 in position amount, with the same formula we get 0.887174.
So my question is: Where goes the 0.000988 diff ?
The profit made will be added to the margin of the Isolated Margin account.
I suggest reading over this article to familiarize with the concept
Hi,
In the example you provided, are you considering the commission cut?
commission is directly taken from the balance nope?
44309.3 * 0.001*0.0004 = 0.01772372 for the first trade so not the question here, I just want to know how this isolatedWallet field is handled
Like, if we are shorting and want to BUY, we are not spending our balance into this isolated wallet, that’s the opposite, we taking back isolated wallet into our balance but how much? because if we are shorting X and BUYING X at another price, the isolated wallet will not give 0 idk if I’m clear enough
Ok someone can confirm this?
The wallet balance don’t change at all with isolated wallet. That’s the cross wallet balance. After a trade, Binance look now how much size we have in the position, apply the formula here Comment calculer le coût requis pour ouvrir une position sur un contrat à terme perpétuel | Binance Support, then remove this from the cross wallet balance. If before the trade position was not at 0, it takes into account the old isolated wallet/cross wallet balance to adjust.
@tantialex Yeah sorry I don’t know how to explain it but I think I’ve figured it out. My initial question was how Binance handle the field isolated wallet. Like when we make orders how this value change. But I think this is just based on the final size of the position after each trade and not on the trade infos itself.