Formula & Calculator
Perpetual Futures Unrealized PnL
Calculates the unrealized profit or loss on an open perpetual futures position based on current market price versus entry price.
Interpretation
PnL = Position Size × (Exit Price − Entry Price) / Entry Price. The unrealised profit or loss of a futures position.
Variables
| Symbol | Quantity | Unit |
|---|---|---|
| PnL | Unrealized profit or loss | currency |
| Position Size | Notional position size | currency |
| Exit Price | Current market price | currency |
| Entry Price | Position entry price | currency |
What it means
Unrealised PnL is the current profit or loss on an open position, calculated based on the current price. It becomes realised when the position is closed. This is used by traders to monitor their positions and to decide when to take profit or cut losses. Understanding this helps in risk management.
Worked example
Perpetual Futures Unrealized PnL – Two Detailed Examples
Real‑World| Parameter | Value |
|---|---|
| Position Size | $10,000 |
| Entry Price | $60,000 |
| Current Price | $63,000 |
| Parameter | Value |
|---|---|
| Position | $5,000 |
| Entry | $3,000 |
| Current | $2,850 |
Common mistakes
- Unrealised PnL: The profit or loss on open positions.
- Position size: The quantity of the asset.
- Exit price: The current market price.
- Entry price: The price at which the position was opened.
- For longs: Profit if exit > entry; for shorts, opposite.
Applications
Perpetual futures unrealised PnL calculates the profit or loss on an open position based on the current price compared to the entry price. This is used to track the floating profit/loss of trades. Traders use it to manage risk and to decide when to take profit or cut losses. Understanding unrealised PnL is crucial for active trading.
- Monitoring the profitability of open positions
- Setting take‑profit and stop‑loss levels
- Risk management and position adjustment
- Calculating margin requirements
- Educational understanding of futures PnL
Frequently Asked Questions
PnL = Position Size × (Exit Price - Entry Price) / Entry Price. For example, a $10,000 long position at $60,000 with current price at $63,000 gives PnL = 10000 × (3000/60000) = $500. This is the unrealized gain.
No, unrealized PnL only reflects the price difference. Funding payments are separate and may be realized as they are credited or debited.
Leverage multiplies both the position size and the PnL. If you use 10x leverage, a 1% price move results in a 10% PnL on your margin. The formula uses notional position size.
Not exactly. Equity includes unrealized PnL plus your margin. As PnL changes, your equity changes. The unrealized PnL is a component of your total account value.
Yes, if the price moves against your position, the PnL is negative. This reduces your equity and may trigger liquidation if it reaches the maintenance margin.
Active traders monitor it continuously. For longer-term positions, checking at least daily is recommended to manage risk.
Unrealized PnL is paper profit/loss on open positions. Realized PnL is locked in when you close the position and the profit/loss is credited to your account.
No, fees are separate costs. To get net PnL, subtract entry and exit fees from the gross PnL.