Profit and loss calculations are based on the contract’s collateral. For instance, USDT-Margined contracts will be denominated in USDT.
Note that unrealized Profit and Loss are calculated based on the Mark Price, while realized Profit and Loss are calculated based on the last price.
Profit and Loss calculations for USDT-Margined Perpetual Contracts (BTCUSDT)
Assume you purchase (long) 10,000 USDT worth of BTCUSDT perpetual contracts at 50,000 USDT. The price increases, and you exit at 55,000 USDT. Your profit will be:
((1 / Futures Entry Price) - (1 / Futures Exit Price)) x Position Amount
( 1 / 50,000 - 1 / 55,000 ) x 10,000 = 0.018182 Bitcoin
Conversion to USDT = 0.018182 x 55,000 USDT = 1,000 USDT
Assume you sold (short) 10,000 USDT worth of BTCUSDT perpetual contracts at 50,000 USDT. The price decreases and you exit at 45,000 USDT. Your profit will be:
((1 / Futures Entry Price) - (1 / Futures Exit Price)) x (Position Amount x -1)
( 1 / 50,000 - 1 / 45,000 ) x -10,000 = 0.022 Bitcoin
Conversion to USDT = 0.022 x 45,000 USDT = 1,000 USDT
How to calculate Unrealized PNL and ROE%
USDT-Margined Perpetual Contracts
- Users choose Mark price as price basis:
Unrealized PNL = position amount x direction of order x (mark price - entry price)
ROE% =Unrealized PNL in USDT / entry margin = ( ( mark Price - entry Price ) x direction of order x amount ) / （position_amount x contract_multiplier x mark_price x IMR）
*IMR = 1/Leverage
- Users choose Latest price as price basis:
Unrealized PNL = position amount x direction of order x (latest price - entry price)
ROE% = Unrealized PNL in USDT / entry margin = ( ( latest price - entry Price ) x direction of order x amount ) / (position_amount x contract_multiplier x mark_price x IMR）
direction of order: 1 for long order; -1 for short order