Earlier this week, we enabled our new profit and loss (PnL) realisation feature – allowing cross-margining users to automatically realise their PnL for open positions, with the same margin currency, every 10 minutes.
You can read about it here.
Based on feedback from you, our traders, we have made additional improvements to the Open Position table, designed to make it easier to track trading PnLs with this new feature in place.
You will find a new column has been added – Position PNL. This allows traders to track the PnL on a given position, whether the associated balances are sitting in; Realised PNL, Unrealised PNL, the wallet or has even been withdrawn.
Here’s a quick summary of what these different fields mean:
- Unrealised PNL: The unrealised profit and loss on the position. If using Isolated Margin for the lifetime of the position, this will match Position PNL.
- Realised PNL: The realised profit and loss on the position. With the new PnL Offset feature, profits of a position are realised every 10 minutes. Funding and closed positions are reflected in Realised PnL.
- Position PNL: The profit and loss on this position since it was opened. Please note that this field is for information only and does not represent the funds that may be available.
The following example illustrates how these three values can vary.
Example Scenario
Jack buys 1,000,000 of XBTUSD at 30,000 at MarkPrice of 30,000 with 1 XBT of Initial Margin.
His PnL is:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
0 XBT |
0 XBT |
0 XBT |
0 XBT |
The XBTUSD mark price rises to 32,500 and Jack’s PnL is:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
2.5641 XBT |
2.5641 XBT |
0 XBT |
0 XBT |
A few minutes later, Jack’s profit is realised through PnL realisation, so his PnL is now:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
2.5641 XBT |
0 XBT |
2.5641 XBT |
2.5641 XBT |
Jack decides to withdraw 2 XBT of his profits:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
2.5641 XBT |
0 XBT |
0.5641 XBT |
0.5641 XBT |
A little while later, XBTUSD is trading at 31,500:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
1.5873 XBT |
-0.9768 XBT |
0.5641 XBT |
0.5641 XBT |
Jack looks at his Position PNL and closes his position at 31,500 expecting to realise a profit of 1.5873 XBT and be able to withdraw that profit, plus his Initial Margin, but what he sees is:
|
Position PNL |
Unrealised PNL |
Realised PNL |
Funds available to withdraw |
|
0 XBT |
0 XBT |
-0.4127 XBT |
0.5873 XBT |
So, What Happened?
When Jack closed the position, his Unrealised Loss of -0.9768 was realised.
This was added to his Fund available to withdraw, along with his 1 XBT margin to make a total of 0.5873.
How Much PnL Did Jack Make Overall?
Jack started with 1 XBT of margin.
His final balance was 0.5873 XBT.
He withdrew 2 XBT along the way.
So net he made 1.5873 XBT – the Position PnL
To learn more about PnL accounting and additional sample calculations read on here.