Profit and loss calculation of margin

Published on Jun 17, 2022Updated on Oct 21, 20252 min read

Margin mode of single currency account

Profit and loss

  1. Long margin with base crypto, PnL is quoted with base crypto (using Mark price and Last price)

    1. Mark price PnL = Assets in position - (Debt + Interest) / Mark price

    2. Last price PnL = Assets in position - (Debt + Interest) / Last price

  2. Long margin with quote crypto, PnL is quoted with quote crypto (using Mark price and Last price)

    1. Mark price PnL = Assets in position * Mark price - (Debt + Interest)

    2. Last price PnL = Assets in position * Last price - (Debt + Interest)

  3. Short margin with quote crypto, PnL is quoted with quote crypto (using Mark price and Last price)

    1. Mark price PnL = Assets in position - (Debt + Interest) * Mark price

    2. Last price PnL = Assets in position - (Debt + Interest) * Last price

  4. Short margin with base crypto, PnL is quoted with base crypto (using Mark price and Last price)

    1. Mark price PnL = Assets in position / Mark price - (Debt + Interest)

    2. Last price PnL = Assets in position / Last price - (Debt + Interest)

Rate of return = PnL / Margin of opening position

By incorporating both mark price and last price into the profit and loss calculations, users can gain a more comprehensive understanding of their position's performance. Mark price helps to minimize the impact of abnormal market volatility, while last price provides insight into the most recent trading activity for the margin or contract.