WEEX Futures: Unrealized PnL and realized PnL

Dear WEEXers,

 

The following text is about unrealized PnL and realized PnL.

User participation in futures trading will inevitably result in either trading profits or losses. There are two types of profits and losses: unrealized PnL from held positions and realized PnL from liquidations.

 

1. Unrealized profit and loss

 Unrealized profit and loss refers to the gains or losses from the user’s open positions. After the current position is closed at the fair mark price, the estimated profit and loss amount will fluctuate with changes in the mark price.

USDT-Margined futures

Long unrealized profit and loss = face value x number of positions x (current mark price-average open price)

Short unrealized profit and loss = face value x number of positions x (average opening price-current mark price)

 

Here is the example:

Suppose that when the price of Bitcoin is 8,500 USDT, Xiao Ming opens a long position in a USDT-margined futures contract worth 10,000 lots (BTC/USDT futures). The current fair mark price of the futures is 9,000 USDT. If fees are not considered, Xiao Ming’s unrealized profit and loss is:

0.001 BTC x 10,000 lots x (9,000 USDT/BTC-8,500 USDT/BTC) = 5000 USDT

 

2. Realized profit and loss

Realized profit and loss refers to the actual profit or loss that occurs after a position is closed, calculated based on the user’s opening price and closing price.

USDT-Margined futures

Long realized profit and loss = face value x closing quantity x (closing price-average opening price)

Realized short position profit and loss = face value x closing quantity x (average opening price-closing price)

 

Here is the example:

Suppose that when the price of Bitcoin is 8,500 USDT, Xiao Ming opens a long position in a USDT-margined futures contract for 10,000 lots (BTC/USDT futures). The current fair mark price of the futures is 9,000 USDT. If fees are not considered, Xiao Ming’s unrealized profit and loss is:

0.001 BTC x 10,000 lots x (9,000 USDT/BTC-8,500 USDT/BTC) = 5000 USDT

 

Thank you for your support of WEEX!

 

WEEX Team

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