Profit and Loss (PnL) is calculated using the limit price or fill price once a position is opened. A position is liquidated or taken over if the balance of the account is not sufficient to cover maintenance margin.
We do not provide support on PnL or guarantee that this figure fits a specific purpose. Instead, Interdax will help to ensure that your balances and positions are correct.
While a position is active, your PnL is calculated using the mark price in relation to your entry price. The mark price is derived from an index to track the price of the underlying asset.
PnL is always denoted in the settlement currency (e.g., BTC for BTC-PERP).
Let's look at an example to illustrate how a position's PnL is calculated.
Suppose you buy 100,000 BTC-PERP contracts with an entry price of $7,600. Therefore, the position value at entry price is (100,000/7,600)= 13.1579 BTC. The entry price (or fill price) can be found on the Order History page.
Realised PnL is calculated as:
= (position value at entry price) - (position value at current mark price)
If the mark price drops $20 to $7,580, then the position value at current mark price will then become:
= (100,000/7,580) = 13.1926 BTC
The Realised PnL is then:
(13.1579 - 13.1926) = -0.0347 BTC.
(Note: the above calculations abstract from funding/trading fees. If you received 0.0001 BTC from funding payments and paid 0.0009 BTC in trading fees, then your realised PnL is = [-0.0347] - 0.0008 = -0.0355 BTC).
Once a position is opened, Realised PnL will be displayed in the positions tab as highlighted below.
A position at a loss will be in red while a profitable position will be displayed green. The return on equity percentage (ROE%) is also displayed, which is the profit (or loss) as a percentage of your used margin.
You can instantly use any profits gained from a position to leverage another trade, transfer to another sub-account or to withdraw funds.
An interest rate is continuously calculated for each position and is deducted (or added) to your realised PnL. When the interest rate is positive, long positions pay short positions, while the opposite is true when interest rates are negative.
You can find the interest payments made to/taken from your account on the Transaction History page. With continuous settlement, there is no concept of unrealised PnL. There's only Realised PnL and this will be reflected in your account balance.
In the example above, if you started with 1 BTC in your account, and your Realised PnL is -0.0355 BTC, you'd have approximately 0.9645 BTC in your account if the mark price falls $20 from your entry price.
The cost of a market order to close a position will also be automatically included in the Realised PnL in the near future.
Suppose you still have the 100,000 contract long position open, but now the mark price is $8,100.
The Realised PnL is then:
= (position value at entry price) - (position value at current mark price)
= (100,000/7,600) - (100,000/8,100)
= (13.1579) - (12.3457)
= +0.8122 BTC
(Note: the above calculations abstract from funding/trading fees).
Since BTC-PERP is continuously settled, these profits are immediately reflected in your account balance. If you started with 1 BTC in your account, you'd then have a balance of approximately 1.8122 BTC when the mark price is at $8,100.
You can then use the 0.8122 BTC profit from the trade to immediately open a new position or make a transfer or withdrawal. Until you exit the position, its value will be the difference between the entry price and the mark price.
Alternatively, you can close the position and set a limit order to sell 100,000 BTC-PERP contracts at $8,100. Suppose the limit price was $8,100 when your order was filled, but the mark price was $8,105, your realised profits are still approximately 0.8122 BTC. Therefore, once you exit the trade, your profits or losses are calculated using the fill price of your order.
Let's say you want to reduce your position size. You could sell 50,000 BTC-PERP contracts, which would reduce your position to 50,000 contracts. The Realised PnL of that position is then calculated for the remaining contracts, as shown below:
= (Position value at entry price) - (position value at current mark price)
= (50,000/7,600) - (50,000/8,100)
= (6.5789) - (6.1728)
= +0.4061 BTC
You can also use sub-accounts to manage different positions. The PnL of one sub-account is completely separate from the PnL of another sub-account, and do not impact each other.
Balances of each cryptocurrency are also isolated from one another, meaning that liquidation of bitcoin positions will not affect the balances of any other cryptocurrencies. For example, if you entered a trade that generated a profit in BTC, but also entered a losing trade on ETH, then your profits will be paid in BTC and losses deducted in ETH.