When trading on LBank, understanding how to calculate Profit and Loss (PnL) and PnL Percentage (PnL%) **helps you evaluate your trading performance. Below is an introduction to the basic concepts, calculation formulas, and examples of PnL and PnL% to help you quickly grasp these concepts.
Unrealized PnL & PnL%
Unrealized PnL
- Unrealized Profit and Loss (PnL) refers to the profit or loss of a currently held position that has not yet been realized through closing the position. If the current value is greater than the average entry price, it is an unrealized profit; if it is lower, it is an unrealized loss.
- The formula for calculating unrealized PnL varies slightly depending on the trading direction.
Formula:
|
Long Position Unrealized PnL = Position Amount × (Last Price - Average Entry Price) Short Position Unrealized PnL = Position Amount × (Average Entry Price - Last Price) |
Example:
| Entry Price | $60,000 USDT |
| Last Price | $65,000 USDT |
| Position Amount | 0.1 BTC |
Caculate：
|
Long Position Unrealized PnL = Position Amount × (Last Price - Average Entry Price) 👉 0.1 x (65,000 - 60,000) = 500 USDT |
⚠️Note
- Unrealized PnL calculations do not include trading fees, closing fees, or funding fees incurred during opening, closing, or holding a position.
- By default, unrealized PnL is displayed based on the last price. Users can switch to calculate it using the mark price or last price.
- Increasing leverage does not directly multiply PnL; PnL depends on position amount and price fluctuations. Higher leverage reduces the margin required to open a position; larger contract quantities and greater price differences from the entry price result in higher PnL.
Unrealized PnL%
- Profit and Loss Percentage (PnL%): The return on investment (ROI) of a position, calculated as ROI = Investment Profit / Investment Cost.
- Margin refers to the initial capital investment required by an investor for leveraged trading.
Formula:
|
Unrealized PnL% = (Position Unrealized PnL / Position Margin) × 100% Position Margin = (Average Entry Price × Position Amount) / Leverage |
⬇️
|
Long Position Unrealized PnL%= (Last Price - Average Position Price) / Average Position Price × Leverage × 100% Short Position Unrealized PnL% = (Average Position Price - Last Price) / Average Position Price × Leverage × 100% |
Example:
| Entry Price | $60,000 USDT |
| Last Price | $65,000 USDT |
| Position Amount | 0.1 BTC |
| Leverage | 10x |
Calculate:
|
Unrealized PnL% = (Position Unrealized PnL / Position Margin) × 100% 👉 (65,000-60,000) / 60,000 x 10 x 100%=83% |
⚠️Note:
- Increasing leverage does not directly increase unrealized profits. Sometimes, a rise in unrealized PnL percentage is caused by a reduction in position margin rather than an actual increase in profits.
- In full position mode, the position margin is calculated based on the highest leverage allowed under the current risk limit for that asset.
Realized Profit and Loss & PnL Percentage
Realized Profit and Loss(PnL)
- Realized Profit and Loss(PnL) refers to the profit or loss generated after closing a position, calculated by multiplying the difference between the closing price and the average entry price by the closed position amount. A closing price higher than the entry price results in a profit, while a lower closing price results in a loss.
Formula:
| Realized PnL= The profit or loss generated after closing a position |
Example:
| Entry Price | $60,000 USDT |
| Last Price | $65,000 USDT |
| Position Amount | 0.1BTC |
| Closed Position Amount | 0.05BTC |
| Leverage | 10x |
Calculate:
|
Realized PnL = (Closing Price - Average Entry Price) × Closed Position Amount 👉 (65,000 - 60,000) x 0.05 = 250 USDT |
Realized PnL%
- Realized PnL% is an indicator reflecting the actual profit or loss after closing a position, representing the capital change and return on investment following the closure of a trade.
Formula:
|
Realized PnL% = Realized PnL / Margin × 100% Margin = Average Position Price × Liquidation Quantity / Leverage |
Example:
| Entry Price | $60,000 USDT |
| Last Price | $65,000 USDT |
| Position Amount | 0.1BTC |
| Closed Position Amount | 0.05BTC |
| Leverage | 10x |
Calculate:
👉 60,000 x 0.05 / 10=300 USDT
👉 250 / 300 x 100%= 83% |
How-to
- On the target page of the contract trading pair, you can view the [Unrealized Profit and Loss] under current [Position].
- Tap on [Mark Price] to select the Mark Price or Last Price.
- For Transaction Details, go to [Wallet] - [Order Center]
👉https://www.lbank.com/wallet/orders/exchange/open-order
- Tap [Futures Order] - [Transaction History] to check details of Entry Price/Last Price/Realized PnL.
👉https://www.lbank.com/wallet/orders/futures/trade-history
*In case of translation discrepancies, the English version prevails.
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