When trading WLDUSDT perpetual futures with 30x leverage, a -39.90% ROI (Return on Investment / Return on Equity) means the following for your position:
1. Loss of Initial Margin (Collateral)
- ROI is calculated directly against your initial margin.
- A -39.90% ROI means you have lost 39.90% of the initial margin (collateral) you put up to open that trade.
- Example: If you allocated 100 USDT as margin for the trade, your current loss is 39.90 USDT. If you allocated 1,000 USDT, your loss is 399.00 USDT.
2. Underlying WLD/USDT Price Movement
Because your position is amplified by 30x leverage, the underlying asset price only needs to move against your position by a small percentage to generate that margin loss: \text{Price Movement} = \frac{\text{ROI}}{\text{Leverage}} = \frac{39.90\%}{30} \approx 1.33\%
- This means the WLD/USDT market price moved 1.33% against your direction (down for a long, or up for a short), resulting in a 39.90% loss on your collateral. (Note: This excludes minor trading fees or funding fees).