1. What is Bitcoin Futures P/L?

The Bitcoin Futures Profit/Loss (P/L) calculation determines the financial outcome of a futures contract based on the difference between the closing and opening prices, multiplied by the contract size.

2. How Does the Calculator Work?

The calculator uses the Bitcoin Futures P/L formula:

Where:

• \( Close \) — Closing price of the futures contract (USD)
• \( Open \) — Opening price of the futures contract (USD)
• \( Contract\ Size \) — Size of the contract in Bitcoin (BTC)

Explanation: A positive result indicates profit, while a negative result indicates loss. The calculation doesn't account for fees or funding rates.

3. Importance of P/L Calculation

Details: Accurate P/L calculation is crucial for risk management, position sizing, and evaluating trading strategy performance in cryptocurrency futures markets.

4. Using the Calculator

Tips: Enter prices in USD and contract size in BTC. All values must be positive numbers. The calculator assumes a single contract calculation.

5. Frequently Asked Questions (FAQ)

Q1: Does this include trading fees?
A: No, this is the raw P/L calculation before fees. You should subtract exchange fees from the result.

Q2: What's a typical Bitcoin futures contract size?
A: Most exchanges offer contracts sized at 1 BTC, though some offer mini (0.1 BTC) or micro (0.01 BTC) contracts.

Q3: How does leverage affect P/L?
A: Leverage multiplies both potential profits and losses, but this calculator shows the base P/L before leverage.

Q4: What about perpetual contracts?
A: The same formula applies, but remember to account for funding payments which affect net P/L.

Q5: How accurate is this for tax purposes?
A: This provides basic calculation, but consult a tax professional as tax rules vary by jurisdiction.