TCEX trading platform buying and selling transactions and profit and loss calculation method
TCEX is Vietnam’s first cryptocurrency trading and custody platform, operating under a controlled pilot mechanism. The platform directly connects Vietnamese Dong funds to the security standards of international financial institutions. Still unsure how to buy and sell on a Vietnamese cryptocurrency exchange and calculate profits and losses? The following example uses two sub-accounts of an investor to help you understand how to calculate buying and selling rights, taxes, and transaction fees. Vietnam crypto exchange
1. Initial assets and purchasing/selling power
The investor has two sub-accounts:
· International Account: VND balance is 0 and holds 1.55 BTC and 10.25 ETH.
· Domestic account: balance of 10,000,000 VND and holdings of 0.05 BTC, 5.25 ETH, and 100 BNB.
Additionally, the account has the following commitments:
· Monthly deposit fee: 100,000 VND.
· Current debt: 0 VND.
· Amount pending execution: 20,000,000 VND (money currently frozen for another buy order).
· Pending sell order for BNB: 50 BNB.
In this example, purchasing power is calculated based on the VND balance minus custody fees (and any outstanding debt). The selling power of each crypto asset is equal to the number of holdings minus the number of sell orders placed.
2. Place a sell order for BNB.
Investor Nguyen Van A used a domestic sub-account to place a SELL order for 50 BNB at a price of 22,990,000 VND/BNB. At the time of placing the order, no one had bought it, so the order was pending execution; the 50 BNB were temporarily frozen.
Assuming the exchange stipulates a personal income tax rate of 0.1% on the sale of derivatives, TCEX currently offers free derivatives trading, so the transaction fee for the BNB/VND pair is 0% for both the maker and the taker.
3. Place a buy order for BNB.
Subsequently, customer Nguyen Thi B used an international sub-account to place a BUY order for 30 BNB at a price of 22,990,000 VND/BNB. The buy order was matched with a portion of Nguyen Van A’s sell order.
Order matching results
Transaction value = 30 BNB × 22,990,000 VND = 689,700,000 VND.
Personal Income Tax (Applicable only to sales orders): 0.1% × 689,700,000 = 689,700 VND (deducted from the seller’s account).
Maker Fee: 0% × 689,700,000 = 0 VND (deducted from the account of the party placing the order – the seller).
Taker fee: 0% × 689,700,000 = 0 VND (deducted from the account of the buyer).
4. Update the balance after the transaction.
After the order is matched, the sub-accounts are recorded as follows:
· Domestic Account Holder – Nguyen Van A:
Amount received: Sales proceeds = 689,700,000 – 689,700 (Personal Income Tax) – 0 (Maker’s Fee) = 689,010,300 VND
Assets: Decreased by 30 BNB (remaining pending matching amount is 20 BNB).
· International Account Holder – Nguyen Thi B:
Amount: Purchase price = 689,700,000 + 0 (Taker fee) = 689,700,000 VND
Assets: Increased by 30 BNB
5. Calculate profit/loss
To calculate the profit/loss of a sell order, you need to know the cost basis (the previous purchase price).
General formula: Profit/Loss = (Selling Price – Cost Price) × Number of Matched Items – Taxes – Transaction Fees.
Example: Suppose Nguyen Van A owns 30 BNB with a cost basis of 20,000,000 VND/BNB. A executes a sell order for 30 BNB at a price of 22,990,000 VND/BNB. Therefore:
· Profit before tax/fees: (22,990,000 – 20,000,000) × 30 = 89,700,000 VND.
· Tax + Fees: 689,700 + 0 = 689,700 VND.
· Profit after tax/fees: 89,700,000 – 689,700 = 89,010,300 VND.
The buyer, Nguyen Thi B, will incur a profit/loss when selling the purchased BNB, as no profit/loss had been incurred at the time of purchase.