Buy Crypto Markets Spot FuturesIOST Earn Event Center Rewards Hub

In Futures trading, unrealized PNL and realized PNL can be confusing. Why does the profit and loss displayed while holding a position differ from the actual PNL after closing it? This article usesIn Futures trading, unrealized PNL and realized PNL can be confusing. Why does the profit and loss displayed while holding a position differ from the actual PNL after closing it? This article uses

Learn/Trading Guide/Futures/PNL Calcula...s Explained

PNL Calculations Explained

Author: MEXC

Beginner

Jul 16, 2025MEXC

#Beginners

4$0.018188-15.50%

1. Difference Between Unrealized and Realized PNL

1.1 Basic Definition

The key difference between unrealized and realized PNL lies in whether the position has been closed.

Unrealized PNL: This refers to the profit or loss of an open position, which fluctuates in real time with market price changes. On MEXC, unrealized PNL is calculated by default using the fair price. Users can choose the pricing basis for unrealized PNL within their current position settings.

Realized PNL: The actual profit or loss generated after a position is closed. This includes all realized PNL from the position, covering trading fees, funding fees, and the closing PNL. The closing PNL is calculated based on the market price matched by the system at the time of closing.

Note: The fair price is calculated based on a combination of the index price and market price, and it may differ from the last price of the contract. This discrepancy is one of the factors that can cause differences between unrealized PNL and realized PNL.

1.2 Calculation Formula Comparison

Position Type	Unrealized PNL Calculation Formula	Realized PNL Calculation Formula
Long	(Fair Price − Avg Entry Price) x Position x Size	(Avg Close Price − Avg Entry Price) x Position x Size
Short	(Avg Entry Price − Fair Price) x Position x Size	(Avg Entry Price − Avg Close Price) x Position x Size

1.3 Example

Why does the profit decrease after closing a position? Let's look at an example using USDT-M ETHUSDT Futures.

While holding the position:

After closing the position:

Position information:

Trading pair: ETHUSDT (Long position: bullish on ETH)
Avg entry price: 2721.18 USDT
Fair price: 2723.92 USDT
Avg close price: 2722.91 USDT
Position size: 50 cont. (1 cont. = 0.01 ETH)
Opening fee: −0.2722 USDT
Closing fee: −0.2722 USDT

Unrealized PNL = (Fair Price − Avg Entry Price) x Position x Size = (2723.92 − 2721.18) x 50 x 0.01 = 1.37 USDT

Current Unrealized Profit = 1.37 USDT

Realized PNL = (Avg Close Price − Avg Entry Price) x Position x Size − Trading Fees − Funding Fees = (2722.91 − 2721.18) x 50 x 0.01 − (0.2722 + 0.2722) − 0 = 0.3206 USDT

Actual Profit = 0.3206 USDT

1.4 Why is PNL Different Before and After Closing a Position?

The following reasons may cause unrealizedPNL and realized PNL to differ:

Reason 1: When the fair price deviates from the market price, it causes unrealized and realized PNL to differ.

Unrealized PNL is calculated based on the fair price by default, while realized PNL is based on the actual matched market price. Large market fluctuations may cause differences between these prices, resulting in discrepancies between unrealized and realized PNL.

Reason 2: Deduction of trading fees and funding fees.

Closing a position deducts fees, so actual realized PNL after fees may differ from unrealized PNL. If the position is held across funding fee periods, funding costs may also apply.

Note: If the funding rate is positive, longs pay funding fees to shorts; if negative, shorts pay longs.

Reason 3: Real-time price fluctuations.

Cryptocurrency prices depend heavily on user trading behaviors. Large buy or sell orders can cause sharp, short-term market price swings. These swings may cause the PNL shown while holding the position to differ from the actual PNL after closing.

Reminder:

The fair price mechanism reduces the impact of market manipulation, but the actual realized PNL depends on the market price when the order is matched.
In Futures trading, unrealized losses may trigger liquidation, so controlling position risk is crucial.

2. How to Calculate the PNLRate

2.1 Calculation Formula

In Futures trading, the PNL rate is a key metric to measure trade performance:

PNL Rate = (PNL / Initial margin) x 100%

Initial Margin = (Avg Entry Price x Contracts x Size) / Leverage

ROI = Unrealized PNL / Initial margin

The ROI only depends on current leverage, not on margin increases or decreases.

2.2 Example

Position Information

Trading pair: ETHUSDT (Long position – bullish on ETH)
Leverage: 500x
Direction: Long (bullish)
Entry price: 2697.30 USDT
Real-time fair price: 2703.67 USDT
Position size: 50 cont. (1 cont. = 0.01 ETH)
Trading fee = 0.2697 USDT
Funding fee = 0 USDT

Initial Margin = (Avg Entry Price x Contracts x Size) / Leverage = (2697.30 x 50 x 0.01) / 500 = 2.6973 USDT

PNL= Unrealized PNL − Trading fees − Funding Fees = 3.185 − 0.2697 − 0 = 2.9153 USDT

PNL Rate = (PNL / Initial Margin) x 100% = (2.9153 / 2.6973) x 100% = 108%

Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. MEXC is not responsible for users' investment decisions.

Market Opportunity

4 Price(4)

$0.018188

$0.018188$0.018188

+1.31%

USD

4 (4) Live Price Chart

Hot Crypto Updates

Circle Agrees to Buy Tazapay for $400M as Stablecoin Payments Expand Globally

Circle Internet Group (NYSE: CRCL), the issuer of USD Coin (USDC), has signed a definitive agreement to acquire Singapore-based cross-border payments infrastructure provider Tazapay in an all-stock

Author: Mubashir

2026-09-10

Pre-Market Briefing on Sept. 10 : Major Indices Slip, Marvell Gains 4.26%, Oracle After-Hours Earnings to Test 93% Cloud Growth

The last trading day was Wednesday, September 9. All three indices fell: the Dow Jones Industrial closed at 52,380.66, down 0.77%; the Nasdaq Composite at 26,256.66, down 0.62%; the S&P 500 at

Author: MEXC

2026-09-10

Claude AI Hacking Incident: What Happened at Anthropic?

During cybersecurity evaluations, pre-release Claude models broke out of sandboxes in 4 incidents, with one model uploading code downloaded by 15 real hosts. Key Takeaways During automated

Author: James Mitchell

2026-09-10

Why Is Apple Stock Down After the iPhone 18 Event? Wall Street Wants More Than a Foldable iPhone

Apple just delivered one of its biggest iPhone launches in years. At Apple Event 2026, the company introduced its first foldable iPhone, the $1,999 iPhone Duo, alongside the iPhone 18 Pro and Pro

Author: James Mitchell

2026-09-10