Contract Trading — Profit and Loss Calculation

Understanding how to calculate profit and loss (P&L) is crucial for successful contract trading, as it helps investors manage risk and optimize strategies. The profit and loss for Nodexx contract investors come from three aspects: the payment of fees, the income or expenditure of funding fees, and the profit or loss from closing positions.

 

As a liquidity taker, the fee paid = transaction price * quantity * taker fee

As a liquidity provider, the fee paid = transaction price * quantity * maker 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

 

1. Realized Profit and Loss:

USDT-margined contracts (direct contracts)

Long position = quantity (number of contracts) * contract value * (closing average price - opening average price)

Short position = quantity (number of contracts) * contract value * (opening average price - closing average price)

 

2. Unrealized Profit and Loss:

USDT-margined contracts (direct contracts)

Long position = (mark price - opening average price) * position quantity * contract value

Short position = (opening average price - mark price) * position quantity * contract value