IBIT Contract Trading PnL

To provide traders with a better understanding of contract PnL, we will outline each factor and how they relate to one another.

1. Average entry/open price

2. Unrealized PnL

3. Realized PnL

4. Closed PnL

5. Position PnL

1. Average entry/open price

On Bitget, the average entry price changes regardless of when a trader submits an order to open a new position.

For example: Trader A holds a long position of 0.8 BTCUSDT">BTCUSDT at an entry price of 25,000 USDT. An hour later, Trader A decided to add 0.6 BTCUSDT to their position at an entry price of 28,000 USDT.

The average entry price is calculated as follows:

Average entry price = total position value in USDT ÷ total quantity of position.

Total position value in USDT = ((quantity 1 × price 1) + (quantity 2 × price 2)...).

We can use this data to calculate the following：

• Total position value in USDT

= ((quantity 1 × price 1) + (quantity 2 × price 2)).

= ((0.8 × 25,000) + (0.6 × 28,000)).

= 36,800 USDT.

• Total quantity of position = 0.8 + 0.6 = 1.4 BTC.
• Average entry price = 36,800 ÷ 1.4 = 26,285.7 USDT.

2. Unrealized PnL

Once an open order is filled, the position and its unrealized PnL can be viewed in real-time in the Position section.

The formula for calculating unrealized PnL differs slightly depending on the direction of your trade.

For long positions

Example:

Trader B holds a long position of 0.3 BTCUSDT at an entry price of 27,000 USDT. When the latest market price is 27,500 USDT, the unrealized PnL will be 150 USDT.

Unrealized PnL = quantity × (latest market price – entry price)

= 0.3 × (27,500 – 27,000)

= 150 USDT

For short positions

Example:

Trader C holds a short position of 0.4 BTCUSDT at an entry price of 27,000 USDT. When the latest market price is 26,500 USDT, the unrealized PnL will be 200 USDT.

Unrealized PnL = quantity × (entry price – market price)

= 0.4 × ( 27,000 – 26,500)

= 200 USDT

Notes:

• USDT-M contracts are settled in USDT, USDC-M contracts are settled in USDC, while Coin-M Futures are settled in the margin coin (for example, BTCUSD is settled in BTC).

• Increasing the leverage will not multiply your PnL by the same amount. PnL is determined by quantity and price fluctuations. In a nutshell:

• The higher the leverage, the less margin you need to open a position.

• The larger the quantity, the higher the PnL.

• The further apart the market price and the entry price, the greater the PnL.

• The unrealized PnL shown by default is calculated based on the latest market price. Mouse over the displayed number to open up a pop-up window. From here, you can choose to calculate the PnL according to the mark price or the market price.

• The unrealized PnL does not include any transaction fees or funding fees paid or collected during the process of opening, closing, or holding a position.

3. Realized PnL

On the Positions tab, you can see the realized PnL of positions that you have partially closed. The realized PnL also does not include any transaction fees or funding fees paid or collected during the process of opening, closing, or holding a position.

Suppose that Trader C opens a long position in a USDT-M contract.

Trader C holds a long position of 1.4 BTCUSDT at an average entry price of 25,000 USDT. If Trader C closes 0.9 of the position at an average price of 27,000 USDT, the realized PnL becomes 0.9 × (27,000 – 25,000) = 1800 USDT.

If Trader C closes the remaining 0.5 of the position at an average price of 24,000, the realized PnL becomes 0.5 × (24,000 – 25,000) = –500 USDT.

The total realized PnL for Trader C's position of 1.4 BTCUSDT is 1800 – 500 = 1300 USDT.

4. Closed PnL

When a trader closes a position, the PnL is realized, and a detailed record of the closed PnL can be found under their futures trade record. The closed PnL is calculated differently from the realized PnL, as shown below.

	Realized PnL	Closed PnL
Position PnL	Included	Included
Transaction fees	Excluded	Included
Funding fees	Excluded	Included

Assuming that the entire position was closed in a single transaction, the formula to calculate the closed PnL is:

Closed PnL = Realized PnL – transaction fees paid to open the position – transaction fees paid to close the position – received/paid funding fees.

Suppose that Trader D opens a short position in the USDT-M Contract.

Trader D holds a short position of 0.4 ETHUSDT at an entry price of 6000 USDT.

When the market price falls to 5000 USDT, Trader D decides to close half its position at the market price. Assuming that Trader D also opened its position at the market price, it would have incurred a total of 2.10 USDT in funding fees while it held the position.

Realized PnL = (6000 – 5000) × 0.2 = 200 USDT.

Transaction fees paid to open the position = quantity × entry price × 0.06% = 0.72 USDT.

Transaction fees paid to close the position = quantity × exit price × 0.06% = 0.6 USDT.

Received/paid funding fees × position closed ÷ total positions = 1.05 USDT.

Closed PnL = 200 – 0.72 – 0.6 – 1.05 = 197.63 USDT.

Notes:

• For partially closed positions, the realized PnL and closed PnL are calculated according to the percentage of the position closed for both transaction and funding fees.

5. Position PnL

When a trader closes their entire position, a record will be generated to show all PnL generated by that position. The calculation is: position PnL = total realized PnL of the position – total transaction fees paid to open positions – total transaction fees paid to close positions – total received/paid funding fees.

Let's continue to use Trader C as an example.

Transaction fees paid to open positions = quantity × entry price × 0.06% = 1.4 × 25,000 × 0.06% = 21 USDT.

Transaction fees paid to close positions = ((quantity 1 × exit price 1 × 0.06%) + (quantity 2 × exit price 2 × 0.06%)] = 0.9 × 27,000 × 0.06% + 0.5 × 24,000 × 0.06% = 21.78 USDT.

Received/paid funding fees = 9.15 USDT.

Closed PnL = 1300 – 21 – 21.78 – 9.15 = 1248.07 USDT

Summary

• Position PnL = the sum of the closed PnL of all orders under the position.

Closed PnL = realized PnL – transaction fees – funding fees.

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