Perpetuals profit and loss explained

Funding P&L

Funding P&L refers to the funding amount exchanged between long and short positions in perpetual contracts. Funding occurs hourly and provides an incentive for the perpetuals contract price to align with the underlying market’s price. Positive funding rates indicates that long positions will pay a funding amount and short positions will receive one. Negative rates indicate the opposite: long positions receive a funding amount and short positions pay one.

Realized P&L

Realized P&L is the profit or loss generated when you close, either fully or partially, your position in a perpetual contract. It is calculated by subtracting the entry price from the exit price, without factoring in any transaction fees incurred during the trade. Due to the settlement mechanism, some of your Unrealized P&L may have already been settled into your trading account’s settlement asset spot balance. Also due to the settlement mechanism, note that realized profits or losses are not immediately applied to your trading account.

Unsettled P&L

Unsettled P&L is the sum since the last settlement of:

1. Any profits or losses realized from closing positions
   a. For positions opened before the last settlement: versus that contract’s previous settlement price
   b. For positions opened after the last settlement: versus their Entry Price

2. All open positions' mark-to-market P&L
   a. For positions opened before the last settlement: versus that contract’s previous settlement price
   b. For positions opened after the last settlement: versus their Entry Price

Note that the unsettled profit and loss does not include transaction fees or expected funding fees. Funding fees have not been included because these are only paid if you continue to hold the position over the next funding period.

Lifetime Mark-To-Market P&L

Lifetime MTM P&L is the sum of all Realized P&L and Unrealized P&L. It represents the total profit or loss from trading this position since it was opened, if the currently open position was closed at the current price. It does not include Lifetime Funding P&L or any transaction fees.

Lifetime Funding P&L

Lifetime Funding profit and loss accounts for the cumulative funding amount received (if positive) or paid (if negative) since the opening of a perpetual contract. It provides an overview of the total funding accrued over the contract's lifetime, helping you to assess the overall impact of funding rates on your profitability.