How to Calculate Unrealized PNL and Realized PNL

KuCoin future contracts have two types of profit and loss: unrealized PNL and realized PNL.

 

1. Unrealized PNL

Unrealized PNL are the profits or losses of the position you currently hold. They are calculated based on the difference between the average entry price and the current mark price and fluctuate with the mark price.

M: Mark Price

E: Average Entry Price

Unrealized PNL of USDT-Margined Contracts

Unrealized PNL of Long Position = (Current Mark Price – Average Entry Price) × Position Quantity × Contract Multiplier

Unrealized PNL of Short Position = (Average Entry Price - Current Mark Price) × Position Quantity × Contract Multiplier

Example: For BTC/USDT forward perpetual contract (with a multiplier of 0.001, 1 contract = 0.001BTC), suppose you buy 100 contracts of BTC at an average entry price of $5,000, and the current mark price is $5,100, then the unrealized PNL = (5100-5000) × 100 × 0.001 = 10 USDT.

Unrealized PNL of Coin-Margined Contracts

Unrealized PNL of Long Position = (1/Average Entry Price - 1/Current Mark Price) × Position Quantity × Contract Multiplier

Unrealized PNL of Short Position = (1/Current Mark Price - 1/Average Entry Price) × Position Quantity × Contract Multiplier

Example: For BTC/USD reverse perpetual contract (with a multiplier of 1, 1 contract =1 USD), suppose you sell 100 contracts of BTC at an average entry price of $5,000, and the current mark price is $3,000, then the unrealized PNL = (1/3000-1/5000) × 100 × 1 = 0.013 BTC

 

2. Realized PNL

Realized PNL occur when you partially close or reduce your position, including trade profit and loss, trading fee, and funding fee.Trade profit and loss are calculated based on the difference between the position's entry price and the closing price.

M: Mark Price

E: Average Entry Price

 

Realized PNL of USDT-Margined Contracts

Realized PNL of Long Position = (Closing Price – Average Entry Price) × Position Quantity × Contract Multiplier - Trading Fee - Holding-Period Funding Fee

Realized PNL of Short Position = (Average Entry Price - Closing Price) × Position Quantity × Contract Multiplier - Trading Fee - Holding-Period Funding Fee

Example: For BTC/USDT perpetual contract (with a multiplier of 0.001, 1 contract = 0.001BTC), suppose you buy 100 contracts of BTC at an average entry price of $5,000 and close at $5,100, with a trading fee of 0.6USDT and no holding-period funding fee, then the realized PNL = (5100-5000) × 100 × 0.001 - 0.6 = 9.4 USDT.

 

Realized PNL of Coin-Margined Contracts

Buy long: Realized PNL of Reverse Position = (1/Average Entry Price - 1/Closing Price) × Closing Quantity × Contract Multiplier - Trading Fee - Holding-Period Funding Fee

Sell short: Realized PNL of Short Position = (1/Closing Price - 1/Average Entry Price) × Closing Quantity × Contract Multiplier - Trading Fee - Holding-Period Funding Fee 

Example: For BTC/USD reverse perpetual contract (with a multiplier of 1, 1 contract = 1USD), suppose you sell 100 contracts of BTC at an average entry price of $5,000 and close at $3,000, with a trading fee of 0.0006BTC and no holding-period funding fee, then the realized PNL= (1/3000 - 1/5000) × 100 × 1 - 0.0006 = 0.0124 BTC.

 

3. Why does my position show unrealized PNL in green, while the closing PNL history shows a loss?

1) Simply put, this is because the calculation of closing PNL includes trading fee and funding fee. You can see the differences in the table below.

  Unrealized PNL Realized PNL
Position PNL Included Included
Position Opening Fee Excluded Included
Funding Fee Excluded Included
Position Closing Fee

Excluded

Included
Estimated or Final PNL Estimated based on mark price Final PNL based on the average closing price, after deducting trading fee and funding fee.

2) The Unrealized PNL displayed in the position section have the following key features:

未實現盈虧和已實現盈虧.png

A. It is just a quick estimate of the profit PNL. This is not the final position PNL.

B. This estimated profit and loss are based on the platform's mark price. If the latest market price fluctuates, unrealized PNL will also change.

C. Unrealized PNL do not include trading fee and funding fee paid during the opening and holding of the position.

D. The formula for calculating profit and loss can be found in the above text.

3) Realized PNL have the following key features:

未實現盈虧和已實現盈虧.png

A. This represents the total realized PNL for the position since it was opened.

B. Orders that have been closed will be settled based on the average closing price. To understand the actual closing price, please visit your Trade History.

C. Realized PNL include the paid trading fee and the settled funding fee during the opening, holding, and closing of the position.

D. The formula for calculating profit and loss can be found in the above text.

 

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