1. Realized Profit & Loss (PnL)
Realized PnL represents the profit or loss incurred when a position is closed. The calculation formula is:
Realized PnL=(Closing Price−Entry Price)×Contract Quantity\text{Realized PnL} = (\text{Closing Price} - \text{Entry Price}) \times \text{Contract Quantity}
Example:
If you open a long position for 1 BTC futures contract at 50,000 USDT and close it at 60,000 USDT, the realized profit is:
Realized PnL=(60,000−50,000)×1=10,000 USDT\text{Realized PnL} = (60,000 - 50,000) \times 1 = 10,000 \text{ USDT}
2. Unrealized Profit & Loss (PnL)
Unrealized PnL refers to the estimated profit or loss before closing a position, based on the current market price. The calculation formula is:
Unrealized PnL=(Current Market Price−Entry Price)×Contract Quantity\text{Unrealized PnL} = (\text{Current Market Price} - \text{Entry Price}) \times \text{Contract Quantity}
Example:
If you open a long position for 1 BTC futures contract at 50,000 USDT, and the current market price is 55,000 USDT, the unrealized profit is:
Unrealized PnL=(55,000−50,000)×1=5,000 USDT\text{Unrealized PnL} = (55,000 - 50,000) \times 1 = 5,000 \text{ USDT}
3. Other Factors Affecting PnL
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Leverage Multiplier: Leverage does not change the PnL calculation formula but amplifies the contract value.
Example: Using 10x leverage, you only need to invest 5,000 USDT as margin to trade 1 BTC futures contract, but profit & loss calculations are still based on the full contract value of 50,000 USDT. -
Trading Fees: Opening and closing positions incur trading fees, which should be factored into total profit and loss calculations.