Key Terms and Formulas
| Term | Formula |
|------|---------|
| Size | Number of contracts held (positive for long positions, negative for short in One-way mode; both positive in Hedge mode). |
| Entry Price | Adjusted when adding/reversing positions or at settlement. Formulas differ by contract type:
Coin-margined: = (Current Size + Added Size) / (Current Size / Entry Price + Added Size / Added Size's Entry Price)
U-stablecoin-margined: = (Current Size × Entry Price + Added Size × Added Size's Entry Price) / (Current Size + Added Size) |
| Floating PnL | Coin-margined:
Long: Face Value × |Size| × Multiplier × (1/Entry Price - 1/Mark Price)
Short: Face Value × |Size| × Multiplier × (1/Mark Price - 1/Entry Price)
U-stablecoin-margined:
Long: Face Value × |Size| × Multiplier × (Mark Price - Entry Price)
Short: Face Value × |Size| × Multiplier × (Entry Price - Mark Price) |
| Floating PnL Ratio | (Floating PnL / Position Margin) × 100% |
| Closed PnL | Similar to Floating PnL but uses Close Price instead of Mark Price. |
| Settlement PnL | Uses Settlement Price instead of Mark Price. |
| Realized PnL | Closed PnL + Settlement PnL + Trading Fees |
| Realized PnL Ratio | (Realized PnL / Closed Position Margin) × 100% |
Practical Examples
1. Calculating Entry Price
U-stablecoin-margined Contracts:
- Initial: 10 contracts at 100,000 USDT.
- Added: 5 contracts at 160,000 USDT.
- New Entry Price:
= (10 × 100,000 + 5 × 160,000) / (10 + 5) = 120,000 USDT
Coin-margined Contracts:
- Initial: 10 contracts at 100,000 USD.
- Added: 5 contracts at 80,000 USD.
- New Entry Price:
= (10 + 5) / (10/100,000 + 5/80,000) ≈ 92,307 USD
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2. Floating PnL Calculation
U-stablecoin-margined Long Position:
- Face Value: 0.01 BTC | Size: 10 contracts | Multiplier: 1
- Entry: 100,000 USDT | Mark: 160,000 USDT
- PnL:
0.01 × 10 × 1 × (160,000 - 100,000) = 6,000 USDT
Coin-margined Short Position:
- Face Value: 100 USD | Size: 1,000 contracts | Multiplier: 1
- Entry: 100,000 USD | Mark: 80,000 USD
- PnL:
100 × 1,000 × 1 × (1/80,000 - 1/100,000) ≈ 0.25 BTC
3. Floating PnL Ratio
- Floating PnL: 6,000 USDT | Margin: 1,600 USDT
- Ratio:
(6,000 / 1,600) × 100% = 375%
FAQs
Q1: How does settlement affect my entry price?
A1: At settlement, the entry price is replaced by the settlement price, recalculating PnL based on this new benchmark.
Q2: Why is my realized PnL different from closed PnL?
A2: Realized PnL includes trading fees and settlement adjustments, not just the closing trade.
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Q3: How do leverage and margin impact PnL ratios?
A3: Higher leverage amplifies both gains and losses, directly affecting PnL ratios relative to margin used.
Risk Disclosure
Trading futures involves significant risk, including potential loss of principal. Use leverage cautiously and ensure strategies align with your risk tolerance.
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