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Profit and Loss (P&L) Calculation

Profit and loss are calculated when closing a position based on the difference between entry price and exit price.

Formulas​

For Long Position​

grossPnl = (exitPrice - entryPrice) × quantity
netPnl = grossPnl - openingFee - closingFee
returnAmount = marginRequired + netPnl

For Short Position​

grossPnl = (entryPrice - exitPrice) × quantity
netPnl = grossPnl - openingFee - closingFee
returnAmount = marginRequired + netPnl

Parameters​

ParameterDescription
entryPriceEntry price (Fill Price when opening)
exitPriceExit price (Index Price when closing)
quantityQuantity in square meters (quantity_sqm)
openingFeeOpening fee: positionValue × 0.001
closingFeeClosing fee: currentValue × 0.001
marginRequiredMargin used when opening the position
positionValuePosition value when opening: amountUsd × leverage
currentValueCurrent position value: quantity × exitPrice

Explanation​

Gross P&L​

Gross P&L is profit/loss before fees:

Long position:

  • If exitPrice > entryPrice → profit
  • If exitPrice < entryPrice → loss

Short position:

  • If exitPrice < entryPrice → profit
  • If exitPrice > entryPrice → loss

Net P&L​

Net P&L is profit/loss after fees:

netPnl=grossPnl−openingFee−closingFee\text{netPnl} = \text{grossPnl} - \text{openingFee} - \text{closingFee}

Return Amount​

Return Amount is the amount returned to the trader's balance:

returnAmount=marginRequired+netPnl\text{returnAmount} = \text{marginRequired} + \text{netPnl}

If netPnl > 0, the trader receives more than invested. If netPnl < 0, the trader receives less.

Calculation Examples​

Example 1: Profitable Long Position​

Opening conditions:

  • Amount USD = $10,000
  • Leverage = 2x
  • Entry Price = $300,000
  • Quantity = 0.0667 sqm (calculated: 20,000/20,000 / 300,000)

Closing conditions:

  • Exit Price = $315,000

Calculation:

positionValue = $10,000 × 2 = $20,000
openingFee = $20,000 × 0.001 = $20
currentValue = 0.0667 × $315,000 = $21,010.50
closingFee = $21,010.50 × 0.001 = $21.01

grossPnl = ($315,000 - $300,000) × 0.0667 = $1,000.50
netPnl = $1,000.50 - $20 - $21.01 = $959.49
returnAmount = $10,000 + $959.49 = $10,959.49

Example 2: Losing Long Position​

Opening conditions:

  • Amount USD = $10,000
  • Leverage = 2x
  • Entry Price = $300,000
  • Quantity = 0.0667 sqm

Closing conditions:

  • Exit Price = $285,000

Calculation:

positionValue = $10,000 × 2 = $20,000
openingFee = $20,000 × 0.001 = $20
currentValue = 0.0667 × $285,000 = $19,009.50
closingFee = $19,009.50 × 0.001 = $19.01

grossPnl = ($285,000 - $300,000) × 0.0667 = -$1,000.50
netPnl = -$1,000.50 - $20 - $19.01 = -$1,039.51
returnAmount = $10,000 - $1,039.51 = $8,960.49

Example 3: Profitable Short Position​

Opening conditions:

  • Amount USD = $10,000
  • Leverage = 1x
  • Entry Price = $300,000
  • Quantity = 0.0333 sqm (calculated: 10,000/10,000 / 300,000)

Closing conditions:

  • Exit Price = $285,000

Calculation:

positionValue = $10,000 × 1 = $10,000
openingFee = $10,000 × 0.001 = $10
currentValue = 0.0333 × $285,000 = $9,490.50
closingFee = $9,490.50 × 0.001 = $9.49

grossPnl = ($300,000 - $285,000) × 0.0333 = $499.50
netPnl = $499.50 - $10 - $9.49 = $480.01
returnAmount = $10,000 + $480.01 = $10,480.01

Leverage Impact​

Leverage increases both potential profit and potential loss:

  • Without leverage (1x): 5% price change → 5% P&L change
  • With leverage (2x): 5% price change → 10% P&L change

Leverage Example​

Conditions:

  • Amount USD = $10,000
  • Leverage = 2x
  • Entry Price = $300,000
  • Exit Price = $315,000 (5% increase)

Without leverage (1x):

positionValue = $10,000
quantity = $10,000 / $300,000 = 0.0333 sqm
grossPnl = ($315,000 - $300,000) × 0.0333 = $500

With leverage (2x):

positionValue = $20,000
quantity = $20,000 / $300,000 = 0.0667 sqm
grossPnl = ($315,000 - $300,000) × 0.0667 = $1,000

P&L doubles when using 2x leverage.