Part 1: Unrealized P&L
Unrealized P&L refers to the floating profit and loss of your current open positions that have not been closed out yet. It is calculated based on the mark price or the latest market price, and the rate of return is derived by combining the initial margin. The actual P&L shall be subject to the real transaction results, and the figures change in real time.
Part 2: Realized P&L
Realized P&L is the settled profit and loss that you lock in after closing out your positions. Calculation formula: Realized P&L = Closed P&L + Funding Fees + Trading Fees. At the moment of closing the position, the floating P&L will be converted into actual profits or losses.
Part 3: Calculation Example
For instance, you open a long position of 1 BTC at 50,000 USDT and close the position at 60,000 USDT. Realized P&L = (60,000 - 50,000) × 1 = 10,000 USDT. This is your profit.
Part 4: Leverage Does Not Affect P&L Amount
Note! The leverage multiple does not impact the P&L amount, but it will amplify the contract value.
Part 5: Don’t Forget the Fees
The final net P&L you actually receive will also need to deduct the fees for both opening and closing the positions.
Learn to open positions and do the math well. Keep track of your P&L, and trade with more confidence!