How to Accurately Calculate Your Futures PnL

Realized vs Unrealized Profit and Loss

1. Two Types of PnL

Unrealized PnL (Floating Profit/Loss)

This is the current profit or loss on your open positions based on the latest Mark Price. It changes continuously as the market moves. Unrealized PnL is not yet locked in — it only becomes real when you close the position.

Realized PnL

This is the actual profit or loss recorded after you fully or partially close a position. Once realized, it is added to (or deducted from) your account balance and can no longer change with market movements.

2. Basic PnL Formulas

For a Long position:

Unrealized PnL = (Mark Price − Entry Price) × Position Size

For a Short position:

Unrealized PnL = (Entry Price − Mark Price) × Position Size

Note: Position Size is usually expressed in the base asset (e.g., BTC amount). Always confirm the unit shown on your trading screen.

3. How Leverage Affects PnL

Leverage does not change the absolute price difference, but it determines how much margin you need to open the position and therefore how large the percentage return (or loss) is relative to your margin.

Example:

You open a long position of 0.1 BTC at 60,000 USDT using 10x leverage.

Position Value = 6,000 USDT

Initial Margin required ≈ 600 USDT (excluding fees)

If Mark Price rises to 61,200 USDT (+2%):

Unrealized PnL = (61,200 − 60,000) × 0.1 = +120 USDT

Return on margin ≈ 120 / 600 = +20%

If price falls 2% to 58,800 USDT, you would have −120 USDT unrealized loss (−20% on margin).

4. Other Factors That Affect Final PnL

• Trading fees: Opening and closing fees reduce your net profit.
• Funding fees: If you hold across funding settlements, positive funding paid (or negative funding received) will adjust your final result.
• Slippage: Market orders may execute at a slightly different price than expected, especially in volatile conditions.
• Partial closes: Closing only part of a position realizes PnL on that portion; the remaining part continues to show unrealized PnL.

5. Practical Tips

1. Always look at both the absolute USDT PnL and the percentage relative to your margin.
2. Do not confuse unrealized gains with withdrawable profits — only realized PnL (after closing) can typically be transferred or withdrawn (subject to platform rules).
3. When using trial funds or position experience coupons, understand whether profits generated are withdrawable and under what conditions.
4. Check your position details regularly. Mark Price (not Last Price) is usually used for unrealized PnL and liquidation calculations.

6. Key Takeaways

Understanding the difference between unrealized and realized PnL, and how leverage multiplies outcomes, is essential for risk control. Always calculate potential loss scenarios before entering a trade.