1. What is Bitcoin Futures Profit/Loss?

The Bitcoin Futures Profit/Loss Calculator helps traders determine their net gain or loss from Bitcoin futures trades by accounting for the price difference and trading fees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Sell Price} \) — Price at which you sold Bitcoin (USD)
• \( \text{Buy Price} \) — Price at which you bought Bitcoin (USD)
• \( \text{Number of Coins} \) — Amount of Bitcoin traded (BTC)
• \( \text{Fees} \) — Total trading fees paid (USD)

Explanation: The formula calculates the gross profit from the price difference, then subtracts trading fees to determine net profit/loss.

3. Importance of Profit/Loss Calculation

Details: Accurate profit/loss calculation is crucial for evaluating trading performance, tax reporting, and making informed trading decisions.

4. Using the Calculator

Tips: Enter all prices in USD, number of coins in BTC, and fees in USD. Ensure all values are positive numbers with appropriate decimal precision.

5. Frequently Asked Questions (FAQ)

Q1: Should I include funding rates in fees?
A: Yes, for accurate calculation, include all fees including trading commissions and funding rates paid/received.

Q2: How do I handle multiple trades?
A: Calculate each trade separately or use weighted averages for buy/sell prices across multiple trades.

Q3: What if my result is negative?
A: A negative result indicates a net loss on the trade after accounting for fees.

Q4: Does this work for other cryptocurrencies?
A: Yes, the same formula applies to any futures trading, just replace BTC with the relevant coin.

Q5: How accurate should my inputs be?
A: For best results, use exact values from your exchange trade history with maximum decimal precision.