Inverse Contracts Equity and PNL

Inverse Contracts Equity

Equity refers to the actual net assets in the futures account.

Equity = Transferred-in Amount - Transferred-out Amount + Realized PNL + Unrealized PNL

Inverse Contracts PNL

1. Cumulative PNL

The Cumulative PNL refers to the PNL since opening the position, estimated at the Mark Price or the Latest Price.

Cumulative PNL = Realized PNL + Unrealized PNL

2. Unrealized PNL

Unrealized PNL is based on the difference between the Average Entry Price and the Mark Price (or the Latest Price ), and the estimated profit is based on the number of your open positions. The Unrealized PNL will be shown in your position information after you have successfully opened a position, and it is an estimated value of your PNL.

(Long) Unrealized PNL = Contract Amount * Contract Value * (1 / Avg. Opening Price  - 1 / Mark Price)

(Short) Unrealized PNL = Contract Amount * Contract Value * (1 / Mark Price - 1 / Avg. Opening Price)

It is the realized PNL that WILL affect your final profit and loss, NOT the unrealized PNL.

3. Realized PNL

The realized PNL includes the funding fees, the trading fees, and the settled PNL of decreased or closed positions.

(1) Funding Fee

The Funding Fee is a mechanism to ensure that the Futures market price is close to the Spot market price. For details, please refer to An Introduction to Funding Fee.

(2) Trading Fee

The trading fee is charged when buying or selling contracts, and Realized PNL is made when the payment is completed.

(3) Decreased Position / Closed Position Settlement

When all your positions are decreased or closed, the Realized PNL of these positions will be settled according to the closing price and the average entry price.

(Long) Unrealized PNL = Contract Amount * Contract Value * (1 / Avg. Opening Price  - 1 / Mark Price)

(Short) Unrealized PNL = Contract Amount * Contract Value * (1 / Mark Price - 1 / Avg. Opening Price)

4. Profit & Loss Rate (PNL%)

The current PNL% of your open contracts is estimated at the Mark Price or the Latest Price.

PNL% = Unrealized PNL / Initial Margin