Unrealized Profit and Loss / Realized Profit and Loss

When users participate in contract trading, they will inevitably generate trading profits and losses. There are two types of profits and losses: unrealized profits and losses due to positions and realized profits and losses due to closing positions.

 

Unrealized profits and losses refer to the income of users' unclosed positions. After closing the current positions at a reasonable mark price, the estimated profit and loss amount will change with the fluctuation of the reasonable mark price.

Long unrealized profits and losses = par value * number of positions * (current mark price - average opening price)

Short unrealized profits and losses = par value * number of positions * (average opening price - current mark price)

Suppose Xiao Ming buys 10,000 long BTC forward contracts (BTC/USDT contracts) when the Bitcoin price is 8,500 USDT. Now the reasonable mark price of the contract is 9,000 USDT. If the handling fee is not calculated, Xiao Ming's unrealized profit and loss is:

0.0001 BTC * 10,000 contracts * (9,000 USDT/BTC - 8,500 USDT/BTC) = 500 USDT

 

Realized profit and loss refers to the actual profit and loss after closing the position, calculated based on the user's opening price and closing price.

Long realized profit and loss = par value * closing quantity * (closing price - average opening price)

Short realized profit and loss = par value * closing quantity * (average opening price - closing price)

Suppose Xiao Ming bought 10,000 contracts in the BTC forward contract (BTC/USDT contract) when the Bitcoin price was 8,500 USDT, and closed all the positions when the BTC price was 9,000 USDT. If the transaction fee is not taken into account, Xiao Ming's realized profit and loss is

0.0001 BTC * 10,000 contracts * (9,000 USDT/BTC - 8,500 USDT/BTC) = 500 USDT