Common Formulas in Futures Trading Contracts

I. Profit/Loss Calculation for USDT-Margined Contracts

·         Margin: Stablecoins like USDT are used as margin, and profits/losses are also measured in USDT.

·         Unrealized P&L (floating profit/loss before position closure):

·         Unrealized P&L = (Mark Price - Opening Price) × Contract Quantity

·         Realized P&L (actual profit/loss after position closure, net of fees):

·         Realized P&L = (Closing Price - Opening Price) × Contract Quantity - Transaction Fees - Funding Fees

·         Position P&L: Summarizes the actual profit/loss outcome for the entire trading cycle.

II. Crypto-Margined Perpetual Futures P&L Calculation

·         Margin: Uses cryptocurrencies like BTC/ETH as margin, with P&L also denominated in that currency.

·         Unrealized P&L:

·         Unrealized P&L = (Mark Price - Entry Price) × Contract Quantity ÷ Index Price

·         Realized P&L:

·         Realized P&L = (Close Price - Open Price) × Contract Quantity ÷ Index Price

- Transaction Fees - Funding Fees

·         Position P&L: Final profit/loss after all fees are settled.

III. Frequently Asked Questions

1.  Unrealized P&L vs. Realized P&L

·         Unrealized P&L: Floating profit/loss before closing the position

·         Realized P&L: Actual settled profit/loss after closing (includes transaction fees and funding fees)

2.  Does leverage affect P&L?

·         Leverage amplifies both profits and losses but does not alter the underlying price movement.

3.  How are fees accounted for?

·         Transaction fees and funding fees are deducted from realized P&L.

4.  Can P&L show negative values?

·         Yes. A negative value indicates a loss on the position.

5.  How do I view P&L?

·         View unrealized P&L in the “Positions” interface

·         View realized P&L in “Financial History”

The Common Formulas d Futures trading contracts,

1. Core Position Formulas

These formulas determine the basic value and cost of your trade.

Component	Formula
Position Value	Price×Amount (Lot Size)
Opening Margin	Position Value​ Leverage
Unrealized PnL (Long)	(Mark Price−Entry Price)×Size
Unrealized PnL (Short)	(Entry Price−Mark Price)×Size

2. Risk & Account Health Formulas

Monitoring these ensures you avoid Forced Liquidation.

Account Equity

This represents the real-time value of your account.

Equity = Wallet Balance + Unrealized PnL

Margin Level (%)

This is the primary indicator used by brokers to trigger a Margin Call or Stop-Out.

Margin Level = ( Equity/Used Margin ) x100%

Maintenance Margin

The minimum buffer required to keep a position active.

Maintenance Margin = Position Value x Maintenance Margin Rate

Note: If Equity < Maintenance Margin, the position is liquidated.

3. Funding & Costs

In Perpetual Futures, these costs are exchanged between Longs and Shorts every 8 hours.

• Funding Fee: Position Value x Funding Rate
• Effective Leverage: Position Value/Equity

Key Takeaway for Traders

• Leverage acts as a double-edged sword: while it reduces the Opening Margin required, it increases the speed at which your Margin Level can drop during volatility.
• Always use the Mark Price to calculate your liquidation point, as it is designed to prevent "scam wicks" from the Last Price.