2οΈβ£Profit & Loss (PnL) and How It's Calculated
Profit and Loss (PnL) indicator reflects the Profit or Loss of a deal. PnL is calculated in two different ways, depending on if a deal is still currently open or if it has already been closed.
The Profit and Loss (PnL) indicator reflects the Profit or Loss of a position. PnL is calculated in 2 different ways, depending on if a position is still currently Open or if it has already been Closed.
For open positions Realized PnL and Unrealized PnL are taken into account. The potential profit from the deal refers to the Unrealized PnL. Realized PNL in open positions equals already paid commissions (i.e. trade fees and funding).
PnL is not reflected in Open positions. It can be calculated by adding Realized PnL + Unrealized PnL.
Calculating Unrealized PnL of Open positions requires the use of AskPrice and BidPrice, while calculating Unrealized PnL of Closed positions requires the use of ClosePrice
Below are examples of calculation of PnL in Open Positions and in Closed Positions:
How to calculate PnL in OPEN positions
The general formulas for calculating PnL of OPEN positions:
PnL = Realized PnL + Unrealized PnL, where:
Realized PnL = -OpenOrderCommission - Funding, where
OpenOrderCommission = (MarginCol * Leverage) * Maker or Taker fee%
Funding = (MarginCol * Leverage) * FundingFeeRate%
Unrealized PnL (Long) = MarginCol * Leverage * (CurrentAsk - OpenPrice) / OpenPrice
Unrealized PnL (Short) = MarginCol * Leverage * (OpenPrice - CurrentBid) / OpenPrice
Note: CloseOrderCommision is NOT included in PnL until a position has been closed.
EXAMPLE:
Parameters of an OPEN position:
Direction: Long
Order Size: 0.1 BTC
Leverage: x100 (-> Margin = 0.001 BTC)
Open Order: Limit
Funding fee charged: 1 time
First, we must calculate the OpenOrderCommission and Funding:
OpenOrderCommission = (MarginCol * Leverage) * MakerFee% = (0.001 * 100) * 0.019% = 0.000019
Funding = (MarginCol * Leverage) * FundingFeeRate% = (0.001 * 100) * 0.12% = 0.00012
Next, must calculate Realized PnL and Unrealized PnL:
Realized PnL = -OpenOrderCommission - Funding = -0.000019 - 0.00012 = -0.000139
Unrealized PnL (Long) = MarginCol * Leverage * (AskPrice- OpenPrice)/OpenPrice = (0.001 * 100) * (11000 - 10000)/10000 = 0.01
Finally, the last step is calculating PnL. As seen above, the Realized PnL= -0.000139 and Unrealized PnL = 0.01;
PnL(Long) = Realized PnL + Unrealized PnL = -0.000139 + 0.01 = 0.009861
How to calculate PnL in CLOSED positions
The general formulas for calculating PnL of CLOSED positions:
PnL = Realized PnL + Unrealized PnL - CloseOrderCommission , where:
Realized PnL = -OpenOrderCommission - Funding, where
OpenOrderCommission = (MarginCol * Leverage) * Maker or Taker fee%
Funding = (MarginCol * Leverage) * FundingFeeRate%
Unrealized PnL (Long) = MarginCol * Leverage * (ClosePrice- OpenPrice)/OpenPrice
Unrealized PnL (Short) = MarginCol * Leverage * (OpenPrice - ClosePrice)/OpenPrice
CloseOrderCommission = (MarginCol * Leverage) * TakerFee%
EXAMPLE:
Parameters of a CLOSED position:
Direction: Long
Order Size: 0.1 BTC
Leverage: x100 (-> Margin = 0.001 BTC)
Open Order: Market
Close Order: Market
Funding fee charged: 1 time
Firstly, we must calculate the CloseOrderCommission:
CloseOrderCommission = (MarginCol * Leverage) * TakerFee = (0.001 * 100) * 0.06% = 0.00006
Secondly, we must calculate Realized PnL and Unrealized PnL:
Realized PnL = -OpenOrderCommission - Funding = -((MarginCol * Leverage) * TakerFee%) - ((MarginCol * Leverage) * FundingFeeRate%) = -((0.001 * 100) * 0.06%) - ((0.001 * 100) * 0.12%) = -(0.1 * 0.06% ) - (0.1 * 0.12%) = -0.00006 - 0.00012 = -0.00018
Unrealized PnL (Long) = MarginCol * Leverage * (ClosePrice - OpenPrice)/OpenPrice = 100 * 0.001 * (11000-10000)/10000 = 0.01
FInally, the last step is calculating PnL. As seen above, the Unrealized PnL = 0.01, Realized PnL = -0.00018, and CloseOrderCommission = 0.00006:
PnL = Realized PnL + Unrealized PnL - CloseOrderCommission = -0.00018 + 0.01 - 0.00006 = 0.00976
The PnL for open and closed positions is calculated automatically and reflected in the Open Positions and Position History sections of the Trade page for your convenience.
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