Understanding how to calculate profit and loss (P&L) is crucial for successful futures trading, as it helps investors manage risks and optimize strategies. JuCoin futures traders' P&L comes from three aspects: fee expenses, funding fee income or expenses, and closing P&L.
Fees
- As a liquidity taker (Taker Fee), the fee expense = trade price * quantity * Taker Fee
- As a liquidity provider (Maker Fee), the fee expense = trade price * quantity * Maker Fee
Funding Fee
Depending on the positive or negative funding rate and the user's position direction (long or short), the user will either receive or pay funding fees.
Funding Fee = Funding Rate * Position Value
P&L Calculation
1. Closing P&L:
- USDT-Margined Contracts (Linear Contracts)
- Long Position = Quantity (Number of Contracts) * Contract Face Value * (Average Closing Price - Average Opening Price)
- Short Position = Quantity (Number of Contracts) * Contract Face Value * (Average Opening Price - Average Closing Price)
2. Floating P&L:
- USDT-Margined Contracts (Linear Contracts)
- Long Position = (Mark Price - Average Opening Price) * Position Quantity * Face Value
- Short Position = (Average Opening Price - Mark Price) * Position Quantity * Face Value