Question 1

How is ROE different from price change?

Accepted Answer

Return on equity (ROE) is the gain on the margin you actually put up, not the coin’s price move. At 10× leverage a 5% price move becomes a 50% ROE, because you control ten times your margin. This calculator inverts that: you name the ROE you want and it solves for the price the coin must reach.

Question 2

Why is a high target ROE dangerous?

Accepted Answer

Because the exit price sits close to the entry, but so does the liquidation price. Chasing a big ROE with high leverage means a tiny adverse move can close the trade at a loss or liquidate it before your target ever prints. The return and the risk are the same lever pulled in opposite directions.

Calculateur de prix cible du ROE

Le prix de sortie et le prix de liquidation évoluent ensemble