When trading on LBank, understanding how to calculate Profit and Loss (PnL) and PnL Percentage (PnL%) **helps you evaluate your trading performance. Below is an introduction to the basic concepts, calculation formulas, and examples of PnL and PnL% to help you quickly grasp these concepts.

 

Unrealized PnL & PnL%

Unrealized PnL

  • Unrealized Profit and Loss (PnL) refers to the profit or loss of a currently held position that has not yet been realized through closing the position. If the current value is greater than the average entry price, it is an unrealized profit; if it is lower, it is an unrealized loss.
  • The formula for calculating unrealized PnL varies slightly depending on the trading direction.
Formula:

Long Position Unrealized PnL = Position Amount × (Last Price - Average Entry Price)

Short Position Unrealized PnL = Position Amount × (Average Entry Price - Last Price)
Example:
Entry Price $60,000 USDT
Last Price $65,000 USDT
Position Amount 0.1 BTC
Caculate：

Long Position Unrealized PnL = Position Amount × (Last Price - Average Entry Price)

👉 0.1 x (65,000 - 60,000) = 500 USDT
⚠️Note
  1. Unrealized PnL calculations do not include trading fees, closing fees, or funding fees incurred during opening, closing, or holding a position.
  2. By default, unrealized PnL is displayed based on the last price. Users can switch to calculate it using the mark price or last price.
  3. Increasing leverage does not directly multiply PnL; PnL depends on position amount and price fluctuations. Higher leverage reduces the margin required to open a position; larger contract quantities and greater price differences from the entry price result in higher PnL.

 

Unrealized PnL%

  • Profit and Loss Percentage (PnL%): The return on investment (ROI) of a position, calculated as ROI = Investment Profit / Investment Cost.
  • Margin refers to the initial capital investment required by an investor for leveraged trading.
Formula:

Unrealized PnL% = (Position Unrealized PnL / Position Margin) × 100%

Position Margin = (Average Entry Price × Position Amount) / Leverage

⬇️

Long Position Unrealized PnL%= (Last Price - Average Position Price) / Average Position Price × Leverage × 100%

Short Position Unrealized PnL%  = (Average Position Price - Last Price) / Average Position Price × Leverage × 100%
 
Example:
Entry Price $60,000 USDT
Last Price $65,000 USDT
Position Amount 0.1 BTC
Leverage 10x
Calculate:

Unrealized PnL% = (Position Unrealized PnL / Position Margin) × 100%

👉 (65,000-60,000) / 60,000 x 10 x 100%=83%
⚠️Note:
  1. Increasing leverage does not directly increase unrealized profits. Sometimes, a rise in unrealized PnL percentage is caused by a reduction in position margin rather than an actual increase in profits.
  2. In full position mode, the position margin is calculated based on the highest leverage allowed under the current risk limit for that asset.

 

Realized Profit and Loss & PnL Percentage

Realized Profit and Loss(PnL)

  • Realized Profit and Loss(PnL) refers to the profit or loss generated after closing a position, calculated by multiplying the difference between the closing price and the average entry price by the closed position amount. A closing price higher than the entry price results in a profit, while a lower closing price results in a loss.
Formula:
Realized PnL= The profit or loss generated after closing a position
Example:
Entry Price $60,000 USDT
Last Price $65,000 USDT
Position Amount 0.1BTC
Closed Position Amount 0.05BTC
Leverage 10x
Calculate:

Realized PnL = (Closing Price - Average Entry Price) × Closed Position Amount

👉 (65,000 - 60,000) x 0.05 = 250 USDT

Realized  PnL%

  • Realized PnL% is an indicator reflecting the actual profit or loss after closing a position, representing the capital change and return on investment following the closure of a trade.
Formula:

Realized PnL% = Realized PnL / Margin × 100%

Margin = Average Position Price × Liquidation Quantity / Leverage
Example:
Entry Price $60,000 USDT
Last Price $65,000 USDT
Position Amount 0.1BTC
Closed Position Amount 0.05BTC
Leverage 10x
Calculate:
  1. Margin = Average Position Price × Liquidation Quantity / Leverage

👉 60,000 x 0.05 / 10=300 USDT

  1. Realized PnL% = Realized PnL / Margin × 100%

👉 250 / 300 x 100%= 83%

How-to

  1. On the target page of the contract trading pair, you can view the [Unrealized Profit and Loss] under current [Position].

  1. Tap on [Mark Price] to select the Mark Price or Last Price.

  1. For Transaction Details, go to [Wallet] - [Order Center]

👉https://www.lbank.com/wallet/orders/exchange/open-order 

  1. Tap [Futures Order] - [Transaction History] to check details of Entry Price/Last Price/Realized PnL.

👉https://www.lbank.com/wallet/orders/futures/trade-history