1. What is Crypto Futures P/L?

The Crypto Futures Profit/Loss (P/L) calculation determines the monetary result of a futures trade based on the price difference between entry and exit, multiplied by the number of contracts and the contract multiplier.

2. How Does the Calculator Work?

The calculator uses the Crypto Futures P/L formula:

Where:

• \( Close \) — Exit price of the futures contract
• \( Open \) — Entry price of the futures contract
• \( Contracts \) — Number of contracts traded
• \( Multiplier \) — Contract size multiplier (1 for standard contracts)

Explanation: The formula calculates the profit or loss by multiplying the price difference by the position size and contract specifications.

3. Importance of P/L Calculation

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

4. Using the Calculator

Tips: Enter all values in their respective units. Prices should be in USD (or your quote currency), contracts as whole numbers, and multiplier as specified by the exchange (typically 1 for standard contracts).

5. Frequently Asked Questions (FAQ)

Q1: What does a negative P/L mean?
A: A negative result indicates a loss on the trade, meaning the closing price was worse than the opening price.

Q2: How does leverage affect P/L?
A: Leverage amplifies both profits and losses but isn't directly part of this calculation. It affects the margin required, not the P/L formula.

Q3: What's the contract multiplier?
A: This is specified by the exchange. For BTC/USD, it's often 1 (each contract = 1 BTC). For altcoins, it might be different (e.g., 0.1 or 10).

Q4: Are fees included in this calculation?
A: No, this calculates gross P/L. For net P/L, you would need to subtract trading fees.

Q5: Can this be used for short positions?
A: Yes, the formula works the same - if you sold first (opened short), a lower close price would mean profit.