As a contract trader, your profits and losses stem from three key components: trading fees, funding rate payments/receipts, and position closing gains/losses. This guide breaks down each element to help you accurately calculate performance.
1. Trading Fees
Fees depend on your role in liquidity provision:
- Taker Fee (0.02%): Paid when taking existing liquidity
= Position Value × 0.02% - Maker Fee (0.00%): Paid when providing liquidity
= Position Value × 0.00%
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2. Funding Rate Payments
Most perpetual contracts settle funding every 8 hours. Your payment/receipt depends on:
- Long Positions: Pay when rate is positive | Receive when negative
- Short Positions: Receive when rate is positive | Pay when negative
Calculation: Funding Amount = Funding Rate × Position Value
3. Profit/Loss Calculations
3.1 Unrealized P&L (Floating)
USDT-Margined Contracts
- Long:
(Mark Price - Entry Price) × Position Size - Short:
(Entry Price - Mark Price) × Position Size
Coin-Margined Contracts
- Long:
(1/Entry Price - 1/Mark Price) × Position Size - Short:
(1/Mark Price - 1/Entry Price) × Position Size
3.2 Realized P&L (Closed)
USDT-Margined Contracts
- Long:
(Exit Price - Entry Price) × Position Size - Short:
(Entry Price - Exit Price) × Position Size
Coin-Margined Contracts
- Long:
(1/Entry Price - 1/Exit Price) × Position Size - Short:
(1/Exit Price - 1/Entry Price) × Position Size
Practical Example
Trade Details:
- Asset: BTC/USDT
- Position: 0.1 BTC Long
- Entry Price: 50,000 USDT
- Leverage: 10x
- Taker Fee: 0.02%
- Funding Rate: -0.025%
Calculations:
- Entry Fee:
50,000 × 0.1 × 0.02% = 1 USDT - Funding Credit:
50,000 × 0.1 × 0.025% = 1.25 USDT Exit at 60,000 USDT (as Maker):
- P&L:
(60,000-50,000) × 0.1 = 1,000 USDT - Exit Fee:
0 USDT (Maker)
- P&L:
- Total Realized P&L:
1,000 - 1 + 1.25 = 1,000.25 USDT
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4. Key Takeaways
- Always factor in fees and funding rates when calculating net returns
- Maker orders typically incur lower fees than takers
- Historical trade records provide full fee/rate transparency
FAQ
Q: How often are funding payments calculated?
A: Typically every 8 hours for perpetual contracts.
Q: What's the difference between realized and unrealized P&L?
A: Realized reflects closed positions, while unrealized shows current open position value.
Q: Can funding rates be negative?
A: Yes, negative rates mean long positions receive payments from shorts.
Q: How do I minimize trading fees?
A: Provide liquidity (be a Maker) whenever possible.
Q: Where can I check historical funding rates?
A: Most exchanges display this in contract details or trade history.
Q: Do fees vary by contract type?
A: Yes, fees differ between USDT-margined and coin-margined contracts.
Disclaimer: Trading contains risk. Past performance doesn't indicate future results. This content doesn't constitute investment advice.