How to calculate the profit

First, let’s define the terms we will use next.

PnL% (Profit and Loss) – Shows a percentage change in profit or loss in each position regarding the users` funds invested.

PnL Amount – Shows a quantitative change in profit or loss in each position. PnL Amount = PnL% * Order amount. Note, that PNL, PNL%, unrealised PnL, and Realised PnL do not include a trading fee.

  • Unrealised PnL – shows the dynamic profit/loss of the currently open position in real-time. You can monitor it at the [Position] section under the chart window.
  • Realised PnL – shows the fixed profit/loss of a closed position or several positions. You can find it opposite each closed position in the [Closed positions] section. Also, realized PnL for a specific time period is available in the [Realised PnL] section.

Depending on the direction of the position, there are two formulas for calculating the PnL%:

For UP positions:

PnL % = (exit price / entry price – 1) * 100 * leverage;

For DOWN positions:

PnL % = (-1) * (exit price / entry price – 1) * 100 * leverage;

For example, if you open a Buy UP with order amount 0.1 BTC at 50,000 with 50x leverage and close it at 55,000, then use the formula above:

PnL% = (55 000 / 50 000 – 1) * 100 * 50

PnL% = (55 000 / 50 000 – 1) * 5000 = 500%

PNL Amount = 0.1 BTC * 500%

PNL Amount = 0.5 BTC.


How to calculate Net Profit?

Net profit/loss – Our net profit or loss that we receive when closing a trade. To calculate it, use this formula: 

Percent:

Net profit/loss% = PnL% – Fee% 

Quantitative: 

Net profit/loss = PnL Amount – Fee


We already know the formula for calculating the PnL, but to calculate the trading fee we need the following formulas:

Percent:

Fee% = Trading fee% * Leverage * 2 

Quantitative: 

Fee = Order amount * Trading fee% * Leverage * 2

Thus, for the above example, let’s calculate the trading fee charged when closing a position:

Percent:

Fee% = 0.075% * 50 * 2

Fee% = 7.5%

Quantitative:

Fee = 0.1 BTC * 0.075% * 50 * 2 

Fee = 0.0075 BTC


Now we have all the data to calculate the net profit:

Percent:

Net profit/loss% = PnL% – Fee% 

Net profit/loss% = 500% – 7.5% 

Net profit/loss% = 492.5%

Quantitative:

Net profit/loss = PnL Amount – Fee

Net profit/loss = 0.5 BTC – 0.0075 BTC

Net profit/loss = 0.4925 BTС


To open an account on FYBIT and start trading BTC, ETH, ADA & BCH with up to 100x leverage, click here and follow the instructions on the page. If you have any questions, please contact Support.

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Support manager at FYBIT. Trader and investor with 5+ years experience, Crypto Enthusiast BTC. I believe in the future of the blockchain economy and devote all my time to exploring new technologies and opportunities with my team.