1. What is Binance Futures P/L Calculation?

The Binance Futures Profit/Loss calculation determines the financial outcome of a leveraged cryptocurrency futures trade on Binance. It accounts for price difference, position size, and leverage multiplier.

2. How Does the Calculator Work?

The calculator uses the Binance Futures P/L formula:

Where:

• \( Exit \) — Exit price (USD)
• \( Entry \) — Entry price (USD)
• \( Quantity \) — Position size in coins
• \( Leverage \) — Leverage multiplier (e.g., 10 for 10x)

Explanation: The formula calculates the percentage change in price, multiplies by position size, then applies leverage to determine total profit or loss.

3. Importance of P/L Calculation

Details: Accurate P/L calculation is crucial for risk management, position sizing, and understanding the amplified effects of leverage in crypto futures trading.

4. Using the Calculator

Tips: Enter all trade details precisely. Remember that leverage magnifies both profits and losses. Entry price must be greater than 0, and leverage must be 1x or higher.

5. Frequently Asked Questions (FAQ)

Q1: Does this include trading fees?
A: No, this calculates gross P/L before fees. Binance typically charges 0.02%-0.04% per trade.

Q2: How does leverage affect P/L?
A: Leverage multiplies both gains and losses. 10x leverage means 10x the profit or loss compared to an unleveraged position.

Q3: What about liquidation price?
A: This calculator doesn't compute liquidation price, which depends on margin and maintenance requirements.

Q4: Can I use this for short positions?
A: Yes, just enter an exit price lower than entry for shorts. Negative P/L indicates a loss.

Q5: Why is entry price in the denominator?
A: This normalizes the price change as a percentage of the entry price before applying leverage.