Calculation of contract's profit and loss

Published on Jun 20, 2022Updated on Aug 5, 20246 min read

1. Spot and futures margin: cross margin

In Spot and futures margin mode, perpetual/futures support both Hedge mode and One-way mode, as shown in the following figures:

(1)Hedge mode

iii-calculation-of-contract-profit-and-loss image 1

(2)One-way mode

iii-calculation-of-contract-profit-and-loss image 2

Term	Definition
Total	For the One-way mode, the total of long positions is a positive number, and the total of short positions is a negative number.
Avail.	Only shown in Hedge mode Avail. = total positions – positions of pending close orders
P&L	Unrealized profit or loss of current position (1) Coin-margined futures/perpetual swap P&L of long positions = face value * \|number of contracts\|* multiplier * (1 / avg. open price – 1 / mark price) P&L of short positions = face value * \|number of contracts\| * multiplier * (1 / mark price – 1 / avg. open price) (2) USDT-margined futures/perpetual swapP&L of long positions = face value * \|number of contracts\| * multiplier * (mark price – avg. open price) P&L of short positions = face value * \|number of contracts\| * multiplier * (avg. open price - mark price)
P&L ratio	P&L/initial margin
Initial margin	1） Coin-margined futures/perpetual swap Initial margin = face value * \|number of contracts\| * multiplier / (mark price * leverage)2） USDT-margined futures/perpetual swap Initial margin = face value * \|number of contracts\| * multiplier * mark price / leverage
Maintenance margin	1） Coin-margined futures/perpetual swap Maintenance margin = face value * \|number of contracts\| * multiplier * maintenance margin ratio / mark price2） USDT-margined futures/perpetual swapMaintenance margin = face value * \|number of contracts\| * multiplier * maintenance margin ratio * mark price

2. Multi-currency margin mode: cross margin

Under the multi-currency margin mode, perpetual/futures derivatives support both Hedge and One-way mode, as shown in the following:

(1)Hedge mode

iii-calculation-of-contract-profit-and-loss image 3

(2)One-way mode

iii-calculation-of-contract-profit-and-loss image 4

Term	Definition
Total	For the One-way mode, the total of long positions is a positive number, and the total of short positions is a negative number.
Avail.	Only shown under Hedge mode Avail. = Total – Positions of pending close orders
PnL	Unrealized profit and loss of current positions (1) Crypto-margined futures/perpetual swap PnL of long positions = Face value * \|Number of contracts\| * Multiplier * (1/Avg. open price – 1/Mark price) PnL of short positions = Face value * \|Number of contracts\| * Multiplier * (1/Mark price – 1/Avg. open price) (2) USDT margined futures/perpetual swap PnL of long positions = Face value * \|Number of contracts\| * Multiplier * (Mark price – Avg. open price) PnL of short positions = Face value * \|Number of contracts\| * Multiplier * (Avg. open price – Mark price)
PnL ratio	PnL/Position-opening margin
Initial margin	(1) Crypto-margined futures/perpetual swap Initial margin = Face value * \|Number of contracts\| * Multiplier / (Mark price * leverage) (2) USDT-margined futures/perpetual swap Initial margin = Face value * \|Number of contracts\| * Multiplier * Mark price / Leverage
Maintenance margin	(1) Crypto-margined futures/perpetual swap Maintenance margin = Face value * \|Number of contracts\| * Multiplier * Maintenance margin ratio / Mark price (2) USDT margined futures/perpetual swap Maintenance margin = Face value * \|Number of contracts\| * Multiplier * Maintenance margin ratio * Mark price

3. The isolated mode of Spot and futures/Muti-currency/Portfolio margin

In isolated margin mode, perpetual/futures support both Hedge mode and One-way mode, as shown in the following figures:

(1)Hedge mode

iii-calculation-of-contract-profit-and-loss image 5

(2)One-way mode

iii-calculation-of-contract-profit-and-loss image 6

Term	Definition
Total	For the One-way mode, the total of long positions is a positive number, and the total of short positions is a negative number.
Avail.	Only shown in Hedge mode Avail. = total – positions of pending close orders
P&L	Unrealized profit or loss of current position(1)Coin-margined futures/perpetual swapP&L of long positions = face value * \|contracts\| * multiplier * (1 / avg. open price – 1 / mark price)P&L of short positions = face value * \|contracts\| * multiplier * (1 / mark price – 1 / avg. open price)(2)USDT-margined futures/perpetual swapP&L of long positions = face value * \|contracts\| * multiplier * (mark price – avg. open price)P&L of short positions = face value * \|contracts\| * multiplier * (avg. open price – mark price)
P&L ratio	P&L/initial margin
liquidation price	(1)Coin-margined futures/perpetual swapLong positions: Est. liquidation price = face value * \|number of contracts\| * (maintenance margin ratio + fee rate + 1) / (margin balance + face value * \|number of contracts\| / avg. open price)Short positions: Est. liquidation price = face value * \|number of contracts\| * (maintenance margin ratio + fee rate - 1) / (margin balance - face value * \|number of contracts\| / avg. open price)(2)USDT-margined futures/perpetual swapLong positions: Est. liquidation price = (margin balance - face value * \|number of contracts\| * avg. open price) / [face value * \|number of contracts\| * (maintenance margin ratio + fee rate - 1)]Short positions: Est. liquidation price = (margin balance + face value * \|number of contracts\| * avg. open price) / [face value * \|number of contracts\| * (maintenance margin ratio + fee rate + 1)]
Margin balance	Initial margin + margin added to or reduced from this position
Maintenance margin	(1)Coin-margined futures/perpetual swapMaintenance margin = face value * \|number of contracts\| * multiplier * maintenance margin ratio / mark price(2)USDT-margined futures/perpetual swapMaintenance margin = face value * \|number of contracts\| * multiplier * maintenance margin ratio * mark price
Margin level	(Margin balance + P&L) / [position value * (maintenance margin ratio + fee rate)] (1) Coin-margined futures/perpetual swap Margin level = （margin balance + P&L）/ [face value * \|number of contracts\| / mark price * (maintenance margin ratio + fee rate)] (2) USDT-margined futures/perpetual swap Margin level = （margin balance + P&L）/ [face value * \|number of contracts\| * mark price * (maintenance margin ratio + fee rate)]