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Add potential return % to the deal ticket for FCAPs

Open JonRay15 opened this issue 7 months ago • 0 comments

The Chore

We already are calculating the potential return but we are giving it in absolute terms by doing simply priceCap * size which is accurate but doesnt really tell the full story because the initial outlay on margin is different for long vs short.

We want to add the percentage return to this so it is presented "100 (140%)" for instance.

Note that until this ticket is resolved the margin will still be wrong so we're missing a piece of the puzzle, but that is not a dependency for the calculations below.

Tasks

  • [ ] For LONG: % return = (priceCap - price) / price
  • [ ] For SHORT % return = price / (priceCap - price)

Additional details / background info

Spreadsheet with examples and formulas for testing below:

https://docs.google.com/spreadsheets/d/1Bgdr56d37t3CvyIeIEMeJGuNZlXDWrZlmky1VHB0UFQ/edit?usp=sharing

JonRay15 avatar Jul 16 '24 11:07 JonRay15