Bitget beginner's guide: How PnL is calculated in futures trading

Before opening a position, it's essential for traders to understand how profits and losses (PnL) are calculated in cryptocurrency trading—regardless of the trading type. This article explains the differences between USDT-M Futures and Coin-M Futures, along with how PnL is calculated for each.

PnL calculation for USDT-M Futures

In USDT-M Futures trading, USDT is used as margin, and all PnL is calculated in USDT.

In USDT-M Futures trading, USDT is used as margin, and all PnL is calculated in USDT. Suppose Trader A opens a long position in the BTCUSDT perpetual futures pair, with an entry price of 90,000 USDT, a mark price of 95,000 USDT, and an exit price of 94,000 USDT. The position size is 1 BTC, with a transaction fee of 0.02% per trade and a funding rate of 0.1%. Note: Funding fees are calculated as position value × funding rate and apply to positions held through a single funding interval.

1. Unrealized PnL reflects the potential profit or loss of an open position, based on the current mark price. In this example, the mark price is 95,000 USDT, and the entry price is 90,000 USDT.

• Formula: Unrealized PnL = (mark price – entry price) × position size

• Unrealized PnL = (95,000 – 90,000) × 1 = 5000 USDT

2. Realized PnL is the closing profit (actual profit or loss) after a position is closed, adjusted for funding fees and transaction fees.

• Formula: Closing profit = (exit price – entry price) × position size

• Profit = (94,000 – 90,000) × 1 = 4000 USDT

• Formula: Opening fee = entry price × 0.02%

• Opening fee = 90,000 × 0.02% = 18 USDT

• Formula: Closing fee = exit price × 0.02%

• Closing fee = 94,000 × 0.02% = 18.8 USDT

• Formula: Funding fee = position value × funding rate

• Funding fee = 90,000 × 0.1% = 90 USDT

• Formula: Realized PnL = closing profit – opening fee – closing fee – funding fees

• Realized PnL = 4000 – 18 – 18.8 – 90 = 3873.2 USDT

3. Position PnL refers to the total profit and loss for the entire trade, including all fees and realized gains after the position is closed.

• Formula: Position PnL = closing profit – opening fee – closing fee – funding fee

• Position PnL = 4000 – 18 – 18.8 – 90 = 3873.2 USDT

PnL calculation for Coin-M Futures

Coin-M Futures uses cryptocurrencies other than USDT (such as BTC and ETH) as margin, and the PnL is calculated in the same coin used as margin. For example, if BTC is used as margin for BTCUSD trading, the profit will be settled in BTC. Since the value of the margin coin fluctuates with market conditions, the PnL in Coin-M Futures is also affected by changes in the coin's market price.

Suppose Trader B opens a long position in the BTCUSD perpetual futures pair using BTC as margin, with an entry price of 90,000 USD, a mark price of 95,000 USD, and an exit price of 94,000 USD. The position size is 1 BTC, with a transaction fee of 0.02% per trade and a funding rate of 0.1%. Note: Funding fees are calculated as position value × funding rate and apply to positions held through a single funding interval.

1. Unrealized PnL reflects the potential profit or loss of an open position, based on the current mark price. In this example, the mark price is 95,000 USD, the entry price is 90,000 USD, and the BTC index price is 95,000 USD.

• Formula: Unrealized PnL = (mark price – entry price) × (position size ÷ margin index price)

• Unrealized PnL = (95,000 – 90,000) × (1 ÷ 95,000) = 0.05263157 BTC

2. Realized PnL is the closing profit (actual profit or loss) after a position is closed, adjusted for funding fees and transaction fees.

• Formula: Closing profit = (exit price – entry price) × (futures position size ÷ margin index price)

• Profit = (94,000 – 90,000) × (1 ÷ 94,000) = 0.04255319 BTC

• Formula: Opening fee = entry price × (0.02% ÷ margin index price)

• Opening fee = 90,000 × (0.02% ÷ 90,000) = 0.0002 BTC

• Formula: Closing fee = exit price × (0.02% ÷ margin index price)

• Closing fee = 94,000 × (0.02% ÷ 94,000) = 0.0002 BTC

• Formula: Funding fee = position value × (funding rate ÷ margin index price)

• Funding fee = 90,000 × (0.1% ÷ 90,000) = 0.001 BTC

• Formula: Realized PnL = closing profit – opening fee – closing fee – funding fees

• Realized PnL = 0.04255319 – 0.0002 – 0.0002 – 0.001 = 0.04115319 BTC

3. Position PnL refers to the total profit and loss for the entire trade, including all fees and realized gains after the position is closed.

• Formula: Position PnL = closing profit – opening fee – closing fee – funding fee

• Position PnL = 0.04255319 – 0.0002 – 0.0002 – 0.001 = 0.04115319 BTC

FAQ

1. What's the difference between realized and unrealized PnL?

Realized PnL is the actual profit or loss after closing a position, accounting for closing fees and funding fees. Unrealized PnL reflects the potential profit or loss of an open position based on the current market price.

2. Does leverage affect PnL?

Yes. Leverage amplifies both potential profits and losses. While it doesn't directly increase PnL, it magnifies the impact of price movements. Adjusting leverage on an open position changes your risk exposure but doesn't automatically increase profits.

3. Are transaction fees included in the PnL calculation?

Transaction fees are deducted from realized PnL, which reduces net profit or increases net loss.

4. Can PnL be negative?

Yes. A negative PnL indicates a loss on the position.

5. Where can I view my PnL on Bitget?

You can view the PnL of your open positions in the Position section, and the PnL of your closed positions in Transaction History.

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• Bitget beginner's guide: Calculation of funding rates in futures trading