This article explains PnL (Profit and Loss) in futures trading.
🔍 What is PnL?
PnL stands for Profit and Loss, and it consists of two types:
📌 Unrealized PnL
📌 Realized PnL
📊 Unrealized PnL
When you hold an open position in perpetual futures trading,
your PnL is displayed as Unrealized PnL.
Unrealized PnL:
👉 Changes continuously according to market price movements
It is also one of the key factors that may affect liquidation risk.
💰 Realized PnL
When a position is closed,
Unrealized PnL becomes Realized PnL (partially or fully).
Realized PnL:
👉 Is calculated based on the actual execution price of the order
Realized PnL is not directly related to the Mark Price.
⚖ Relationship with Mark Price
📌 Mark Price is used to calculate Unrealized PnL.
This helps prevent unfair liquidations during periods of high market volatility.
🛡 Key Points
✅ Unrealized PnL → Changes based on market price
✅ Realized PnL → Finalized after position is closed
✅ Mark Price → Used for Unrealized PnL and liquidation calculation
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About PnL
