Realized/Unrealized Profit and Loss

Realized Profit and Loss (RPNL) is the actual profit or loss that occurs after closing a position and is calculated based on the trader's average closing price and average opening price.

Unrealized Profit and Loss (UPNL) is the sum of PNLs of positions that the trader did not close. Thus the current profit or loss of the position. UPNL is calculated based on market prices (Mark Price and Last Traded Price) and position average opening price.

UPNL can be found in the trader's "Position" tab as shown below. If the icon next to Unrealized PNL shows M→L, the UPNL is based on the Mark Price. On the other hand, if the icon shows L→M, the UPNL is based on the Last Traded Price. Traders can set the default UPNL for the type they wish to view their UPNL by clicking on the icon.

 

 

RPNL Equation - Long Position

$$ \small\textsf{RPNL} = ({{1 \over \textsf{Avg. Entry Price}} - {1 \over \textsf{Avg. Exit Price}}}) \times \textsf{Quantity} $$

 

<RPNL Example - Long Position>

David is long 10,000 contracts when BTC is 5,000 USDT. He decides to close all 10,000 contracts when BTC is 10,000 USDT.

\begin{align} \small \textsf{RPNL} = ({{\textsf{1} \over \textsf{5,000}} - {\textsf{1} \over \textsf{10,000}}}) \times \textsf{10,000} = \small\textsf{1 BTC}\end{align}

RPNL Equation - Short Position

$$ \small\textsf{RPNL} = ({{1 \over \textsf{Avg. Exit Price}} - {1 \over \textsf{Avg. Entry Price}}}) \times \textsf{Quantity} $$

 

<RPNL Example - Short Position>

David is short 10,000 contracts when BTC is 5,000 USDT. He decides to close all 10,000 contracts when BTC is 4,000 USDT.

\begin{align} \small \textsf{RPNL} = ({{\textsf{1} \over \textsf{4,000}} - {\textsf{1} \over \textsf{5,000}}}) \times \textsf{10,000} = \textsf{0.5 BTC} \end{align}

UPNL Equation (Last Traded Price) - Long Position

$$ \small\textsf{UPNL} = ({{1 \over \textsf{Avg. Entry Price}} - {1 \over \textsf{Last Traded Price}}}) \times \textsf{Quantity} $$

 

<UPNL Example (Last Traded Price) - Long Position>

David is long 10,000 contracts when BTC is 5,000 USDT. The BTC/USDT last traded price reaches 8,000 USDT.

\begin{align}\small \textsf{UPNL} = ({{\textsf{1} \over \textsf{5,000}} - {\textsf{1} \over \textsf{8,000}}}) \times \textsf{10,000} = \textsf{0.75 BTC} \end{align}

UPNL Equation (Last Traded Price) - Short Position

$$ \small\textsf{UPNL} = ({{1 \over \textsf{Last Traded Price}} - {1 \over \textsf{Avg. Entry Price}}}) \times \textsf{Quantity} $$

 

<UPNL Example (Last Traded Price) - Short Position>

David is short 10,000 contracts when BTC is 5,000 USDT. The BTC/USDT last traded price reaches BTC = 4,000 USDT

\begin{align} \small\textsf{UPNL} = ({{\textsf{1} \over \textsf{4,000}} - {\textsf{1} \over \textsf{5,000}}}) \times \textsf{10,000} = \textsf{0.5 BTC} \end{align}

UPNL Equation (Mark Price) - Long Position

$$ \small\textsf{UPNL} = ({{1 \over \textsf{Avg. Entry Price}} - {1 \over \textsf{Mark Price}}}) \times \textsf{Quantity} $$

 

<UPNL Example (Mark Price) - Long Position>

David is long 10,000 contracts when BTC is 5,000 USDT. The BTC/USDT mark price reaches 8,000 USDT.

\begin{align} \small\textsf{UPNL} = ({{\textsf{1} \over \textsf{5,000}} - {\textsf{1} \over \textsf{8,000}}}) \times \textsf{10,000} = \textsf{0.75 BTC} \end{align}

UPNL Equation (Mark Price) - Short Position

$$ \small\textsf{UPNL} = ({{1 \over \textsf{Mark Price}} - {1 \over \textsf{Avg. Entry Price}}}) \times \textsf{Quantity}$$

 

<UPNL Example (Mark Price) - Short Position>

David is short 10,000 contracts when BTC is 5,000 USDT. The BTC/USDT mark price reaches BTC = 4,000 USDT

\begin{align} \small \textsf{UPNL} = ({{\textsf{1} \over \textsf{4,000}} - {\textsf{1} \over \textsf{5,000}}}) \times \textsf{10,000} = \textsf{0.5 BTC} \end{align}