How to Calculate Your Profit and Loss (PnL) in Crypto Futures Trading

Understanding Unrealized PnL

Unrealized PnL reflects potential profits or losses from open positions before closing them.

For Buyers (Long Positions):

Formula:  
(Current Mark Price - Entry Price) × Contract Multiplier (0.001) × Contract Quantity  
ROI% = (Mark Price - Entry Price) × Leverage / Entry Price × 100%

For Sellers (Short Positions):

Formula:  
(Entry Price - Current Mark Price) × Contract Multiplier (0.001) × Contract Quantity  
ROI% = (Entry Price - Mark Price) × Leverage / Entry Price × 100%

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Calculating Realized PnL

Realized PnL confirms actual gains/losses after closing a position.

For Buyers:

(Market Price - Entry Price) × Contract Multiplier (0.001) × Contract Quantity

For Sellers:

(Entry Price - Market Price) × Contract Multiplier (0.001) × Contract Quantity

Key Terminologies Explained

FAQs

1. Why does unrealized PnL fluctuate?

Unrealized values change with market movements until positions are closed.

2. How does leverage affect PnL?

Leverage amplifies both profits and losses proportionally. 👉 Learn safe leverage practices

3. What triggers realized PnL?

Closing positions, partial reductions, or forced liquidations convert unrealized to realized PnL.

4. Are fees included in PnL calculations?

No, PnL formulas exclude trading/ funding fees which impact net profitability.

5. How often should I check my PnL?

Monitor actively during volatile periods but avoid overtrading based on short-term fluctuations.

Advanced Scenarios

Case Study:
A trader buys 100 BTC contracts at $40,000 with 10x leverage.

• If mark price rises to $42,000:
  Unrealized PnL = ($42,000-$40,000)×0.001×100 = $200
  ROI% = ($2,000×10)/$40,000×100 = 50%

Risk Management Tip:
Always set stop-loss orders to limit downside exposure beyond calculated PnL thresholds.