Average Entry Price and PnL Calculations
Average Entry Price and PnL Calculations
[Estimated reading time: 3 minutes]
What is the average entry price?
The average entry price is the weighted average execution price of all trades used to open a position. It is used to calculate profit and loss (PnL) and manage position risk. When a user opens a position through multiple trades, the system calculates the average entry price based on the weighted average of those trades.
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Futures type
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Average entry price formula
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USDT-M / USDC-M perpetual futures (linear futures)
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Average entry price = Σ (entry price of each trade × quantity of each trade) ÷ total position quantity
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Coin-M Futures (inverse futures, including perpetual and delivery futures)
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Average entry price = total cost in USD ÷ total quantity of the underlying asset. Because prices are denominated in USD while position sizes are measured in units of the underlying asset, the calculation differs from that for linear futures.
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USDT-M PnL calculations
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Metric
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Formula
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Unrealized PnL (long position)
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Unrealized PnL = (mark price − average entry price) × futures quantity
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Unrealized PnL (short position)
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Unrealized PnL = (average entry price − mark price) × futures quantity
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Realized PnL
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Realized PnL = closing PnL + transaction fees + funding fees
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Note: Funding fees are displayed as signed values: negative values indicate fees paid, while positive values indicate fees received. Transaction fees are always deducted and are typically displayed as negative values.
Coin-M PnL calculations
Coin-M Futures (inverse futures) are denominated and settled in cryptocurrencies such as BTC and ETH. PnL, transaction fees, and funding fees are all settled in the underlying coin. Because the futures' notional value is denominated in USD while the position size is measured in units of the underlying asset, PnL is calculated using a nonlinear formula:
PnL (settlement coin) = futures notional value (USD) × (1 ÷ entry price − 1 ÷ exit price) × position direction
Realized PnL = closing PnL + transaction fees + funding fees (values are denominated in the underlying coin, such as BTC)
Example: Suppose a user opens a long position in BTCUSD Coin-M Futures with a notional value of 100,000 USD, an entry price of 100,000 USD, and an exit price of 100,100 USD:
PnL = 100,000 × (1 ÷ 100,000 − 1 ÷ 100,100) × (+1) ≈ 0.0009999 BTC
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