Introduction
Previously, when your Futures position is open in profit, the unrealized PNL in your position margin cannot be reduced. Now, with Pyramiding Auto-Settlement, the unrealized PNL will be automatically settled as the realized PNL, and you can use it in position margin. At the time of settlement (every 8 hours), whenever there is any excessive margin, you can either manually transfer it to the balance (Isolated Margin Mode), or pre-set automatic transfer (Cross Margin Mode).
Schematic diagram
At the time of settlement, your [Unrealized PNL] will be settled as Settlement PNL, and your settled funds will be displayed in [Realized PNL]. You can transfer it to the balance manually (Isolated Margin Mode) or by auto-transfer (Cross Margin Mode).
About Settlement
1. The settlement mechanism for Futures trading will not increase or decrease your funds. The function is to automatically settle the profitable funds of your positions into available funds, realize the reuse of funds, and make your trading more flexible and convenient.
2. Changes in relevant data at settlement time:
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Settlement Time: Every 0:00, 8:00, 16:00 (UTC)
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| Relevant Data | Isolated Margin Mode | Cross Margin Mode |
| Unrealized PNL | Unrealized PNL = 0, recalculate | Unrealized PNL = 0, recalculate |
| Realized PNL | Changed, by adding the unrealized PNL of the previous period | Changed, by adding the unrealized PNL of the previous period |
| Position Margin | Change in real-time, the profit can be transferred to the available balance manually | Change in real-time, the profit will be transferred to the available balance automatically |
| Total PNL | Unchanged | Unchanged |
| PNL% | Unchanged | Unchanged |
| Balance Available | Unchanged | Change when in profit |
Notes:
1. The position margin changes in real time according to the mark price, and there will be no drastic changes at the time of settlement (under steady market conditions).
Tutorial on Futures Pyramiding Auto-Settlement
- Cross Margin
1. At 04:00 UTC, open a sell-short BTCUSDT position with the price of 30005 and the amount of 0.1 BTC, as shown in the figure.
Initial Margin = Opening Value * Initial Margin Rate = Opening Value *1 / Leverage * 100%
= 0.1 * 30005 * 1/3 = 1000.166667
Unrealized PNL (Short) = Position Amount * (Settlement Price - Mark Price)
= 0.1 * (30005 - 29610) = 39.5
Realized PNL (Short) = Trading Fee for opening position (Only a trading fee is included after opening a position. Futures taker fee rate: 0.05% )
= -0.1 * 30005 * 0.05% = -1.50025
Cumulative PNL = Unrealized PNL + Realized PNL
= 39.5 + (-1.50025) = 37.99975
PNL% = Cumulative PNL / Initial Margin
= 37.99975/1000.166667 = 3.79%
2. At the time of settlement (08:00 UTC), you can see that the unrealized PNL has been settled to 0 and automatically included in realized PNL, as shown in the figure.
Unrealized PNL (Short) = Position Amount * (Settlement Price - Mark Price)
= 0.1 * (29610 - 29610) = 0
Realized PNL (Short) = Position Amount * (Last Settlement Price - Current Settlement Price) + Trading Fee for opening position + Funding fee (Funding fee is 11.10375 at the time of settlement.)
=0.1 * (30005 - 29610) + (-1.50025) + 11.10375 = 49.1035
Cumulative PNL = Unrealized PNL + Realized PNL
= 0 + 49.1035 = 49.1035
PNL% = Cumulative PNL / Initial Margin
= 49.1035/1000.166667 = 4.9%
3. Under Cross Margin Mode, the realized profit has already been automatically settled into the realized PNL, available in the account balance.
- Isolated Margin
1. At 04:00 UTC, open a sell-short BTCUSDT position with the price of 30005 and the amount of 0.1 BTC, as shown in the figure.
Initial Margin = Opening Value * Initial Margin Rate = Opening Value * 1 / Leverage * 100%
= 0.1 * 30005 * 1/3 = 1000.166667
Unrealized PNL (Short) = Position Amount * (Settlement Price - Mark Price)
= 0.1 * (30005 - 29610) = 39.5
Realized PNL (Short) = Trading Fee for opening position (Only a trading fee is included after opening a position. Futures maker fee rate: 0.03% )
= -0.1 * 30005 * 0.03% = -0.90015
Cumulative PNL = Unrealized PNL + Realized PNL
= 39.5 + (-0.90015) = 38.59985
PNL% = Cumulative PNL / Initial Margin
= 38.59985/1000.166667 = 3.85%
2. At the time of settlement (08:00 UTC), you can see that the unrealized PNL has been settled to 0 and automatically included in realized PNL, as shown in the figure.
Unrealized PNL (Short) = Position Amount * (Settlement Price - Mark Price)
= 0.1 * (29610 - 29610) = 0
Realized PNL (Short) = Position Amount * (Last Settlement Price - Current Settlement Price) + Trading Fee for opening position + Funding fee (Funding fee is 11.10375 at the time of settlement.)
= 0.1 * (30005 - 29610) + (-0.90015) + 11.10375 = 49.7036
Cumulative PNL = Unrealized PNL + Realized PNL
= 0 + 49.7036 = 49.7036
PNL% = Cumulative PNL / Initial Margin
= 49.7036/1000.166667 = 4.96%
3. Under Isolated Margin Mode, the settled profit is still in the position margin. You can manually adjust the margin and transfer the realized profit to the available balance.