How to calculate Profit and Loss & PnL%?

1. Unrealized Profit and Loss & PnL%

(1) Unrealized Profit and Loss

Unrealized profit and loss refer to the profits or losses on a current position that have not yet been realized through closing the position. If the current value is higher than the average position price, it indicates unrealized profit; if it is lower, it indicates unrealized loss.

The formula for calculating unrealized profit and loss varies slightly depending on the trading direction:

Unrealized PnL on long positions = Position amount x (Last price - Avg. position price)

Unrealized PnL on short positions = Position amount x (Avg. position price - Last price)

For example, Billy buys 0.1 BTC at a price of 60,000 USDT for a long position. Currently, the last price for BTC is 65,000 USDT. Billy's unrealized profit and loss can be calculated as follows:

Notes:

• The calculation of unrealized profit and loss does not include any trading fees or funding fees paid or received by the trader during the process of opening, closing, or holding the position.

• By default, the unrealized PnL displayed is calculated based on the last price. By clicking on the unrealized PnL, you can freely switch the price basis to either the mark price or the last price for calculation.

• Increasing leverage does not directly magnify profit or loss by a multiple. Instead, profit and loss are determined by the position amount and price fluctuations. The higher the leverage, the lower the margin required to open a position; the larger the position amount, the greater the profit or loss; the greater the gap between the last price and the average position price, the greater the profit or loss.

(2) Unrealized Profit and Loss Percentage (PnL%)

The profit and loss percentage (Pn%) represents the return on investment for a position, calculated as: Rate of Return = Investment Return / Investment Cost. Margin refers to the initial capital required when an investor uses leverage to trade.

The formula for unrealized PnL% is as follows:

Unrealized PnL% = Position unrealized PnL / Position Margin x 100%

Margin = Avg. position price x Position amount / Leverage

Thus:

Unrealized PnL% for Long Position = (Last price - Avg. position price) / Avg. position price x Leverage x 100%

Unrealized PnL% for Short Position = (Avg. position price - Last Price) / Avg. position price x Leverage x 100%

For example, Billy buys 0.1 BTC at a price of 60,000 USDT with a leverage of 10x. Currently, the last price for BTC is 65,000 USDT. The unrealized PnL% would be calculated as follows:

Unrealized PnL% = (Last Price - Avg. position price) / Avg. Position Price x Leverage x 100% = (65,000 - 60,000) / 60,000 x 10 x 100%= 83%

Notes:

• Increasing leverage does not increase unrealized profit. Based on the formula above, you may sometimes see the unrealized PnL% increase simply because the margin used for the position has decreased, not because the actual profit has increased.

• For cross-margin mode, the margin required for a position is determined by the highest leverage available within the current risk limit for that specific token.

2. Realized Profit and Loss & PnL%

(1) Realized Profit and Loss

Realized profit and loss refer to the profit or loss generated after closing a position.

Example: Billy holds 0.1 BTC with an average position price of 60,000 USDT and a leverage of 10x. When the last market price reaches 65,000 USDT, he closes a portion of his position by selling 0.05 BTC. The realized profit and loss can be calculated as follows:

Realized PnL = (Closed price - Avg. position price) x Closed position amount = (65,000 - 60,000) x 0.05 = 250 USDT

(2) Realized Profit and Loss Percentage (PnL%)

The formula for calculating the realized PnL percentage is as follows:

Realized PnL% = Realized PnL / Margin x 100%

Margin = Avg. position price x Closed position amount / Leverage

Based on the example above:

Margin = Avg. position Price x Closed position amount / Leverage= 60,000 x 0.05 / 10= 300 USDT

Realized PnL% = Realized PnL / Margin x 100%= 250 / 300 x 100%= 83%