How to calculate Crypto.com contract profit and loss? What is the difference between unrealized profit and loss and realized profit and loss?

To calculate profit on Crypto.com, subtract entry price from exit price and multiply by contract size; unrealized profit is potential, realized is actual upon closing.

May 02, 2025 at 09:42 am

Understanding how to calculate profit and loss on Crypto.com contracts is essential for any trader looking to navigate the volatile world of cryptocurrency trading. This article will guide you through the process of calculating your contract profit and loss on Crypto.com, as well as explain the key differences between unrealized and realized profit and loss.

Understanding Crypto.com Contracts

Crypto.com offers various types of contracts, including futures and options, which allow traders to speculate on the future price movements of cryptocurrencies. A contract on Crypto.com represents an agreement to buy or sell a specific amount of a cryptocurrency at a predetermined price on a specified date. These contracts can be used to hedge against price fluctuations or to speculate on price movements for potential profit.

Calculating Profit and Loss on Crypto.com Contracts

To calculate the profit or loss on a Crypto.com contract, you need to understand the basic formula. Profit or loss is determined by the difference between the entry price and the exit price of the contract, multiplied by the contract size. Here's how you can calculate it:

• Determine the entry price: This is the price at which you entered the contract.
• Determine the exit price: This is the price at which you closed the contract.
• Calculate the difference: Subtract the entry price from the exit price.
• Multiply by the contract size: The result of the difference is then multiplied by the number of units specified in the contract.

For example, if you entered a Bitcoin futures contract at $30,000 and exited at $35,000, with a contract size of 1 BTC, your profit would be calculated as follows:

• Difference: $35,000 - $30,000 = $5,000
• Profit: $5,000 1 BTC = $5,000

Unrealized Profit and Loss

Unrealized profit and loss refer to the potential profit or loss on a contract that has not yet been closed. This is also known as "paper profit" or "paper loss." It is calculated in the same way as realized profit and loss, but it reflects the current market price rather than the exit price.

For instance, if you hold a Bitcoin futures contract that you entered at $30,000 and the current market price is $33,000, your unrealized profit would be:

• Difference: $33,000 - $30,000 = $3,000
• Unrealized Profit: $3,000 * 1 BTC = $3,000

Realized Profit and Loss

Realized profit and loss, on the other hand, refer to the actual profit or loss that occurs when a contract is closed. This is the profit or loss that you can withdraw or that affects your account balance. Using the same example as above, if you close the contract at $33,000, your realized profit would be:

• Difference: $33,000 - $30,000 = $3,000
• Realized Profit: $3,000 * 1 BTC = $3,000

Differences Between Unrealized and Realized Profit and Loss

The key difference between unrealized and realized profit and loss lies in their nature and impact on your trading account. Unrealized profit and loss are theoretical and can change as the market price fluctuates, whereas realized profit and loss are locked in once the contract is closed and directly affect your account balance.

• Unrealized profit and loss: These are potential gains or losses that you have not yet realized. They can change with market movements and do not affect your account balance until the contract is closed.
• Realized profit and loss: These are actual gains or losses that you have locked in by closing the contract. They directly impact your account balance and are the final outcome of your trading decision.

How to View Profit and Loss on Crypto.com

To view your profit and loss on Crypto.com, follow these steps:

• Log into your Crypto.com account.
• Navigate to the trading section where your contracts are listed.
• Select the specific contract you want to view.
• Look for the profit and loss section, which will display both unrealized and realized figures.

Practical Example of Calculating Profit and Loss

Let's go through a practical example to solidify your understanding. Suppose you enter a futures contract for Ethereum at $2,000 per ETH with a contract size of 10 ETH. After some time, the market price of Ethereum rises to $2,200 per ETH.

• Unrealized Profit Calculation:
  • Difference: $2,200 - $2,000 = $200
  • Unrealized Profit: $200 10 ETH = $2,000

If you decide to close the contract at this point, your realized profit would be the same as the unrealized profit:

• Realized Profit Calculation:
  • Difference: $2,200 - $2,000 = $200
  • Realized Profit: $200 * 10 ETH = $2,000

However, if the market price drops to $1,800 before you close the contract, your unrealized profit would turn into an unrealized loss:

• Unrealized Loss Calculation:
  • Difference: $1,800 - $2,000 = -$200
  • Unrealized Loss: -$200 * 10 ETH = -$2,000

If you close the contract at $1,800, your realized loss would be:

• Realized Loss Calculation:
  • Difference: $1,800 - $2,000 = -$200
  • Realized Loss: -$200 * 10 ETH = -$2,000

Frequently Asked Questions

Q: Can I convert unrealized profit into realized profit at any time?

A: Yes, you can convert unrealized profit into realized profit by closing the contract at the current market price. Once you close the contract, the unrealized profit becomes realized profit and is reflected in your account balance.

Q: What happens if I hold a contract until its expiration date?

A: If you hold a contract until its expiration date, the contract will be automatically settled at the market price at that time. Any unrealized profit or loss at expiration will become realized profit or loss.

Q: How does leverage affect my profit and loss calculations on Crypto.com contracts?

A: Leverage can amplify both your profits and losses. When using leverage, the profit or loss calculation remains the same, but the amount you gain or lose is multiplied by the leverage factor. For example, if you use 10x leverage on a contract, your profit or loss will be 10 times the amount calculated without leverage.

Q: Are there any fees associated with closing a contract on Crypto.com?

A: Yes, Crypto.com may charge fees for opening and closing contracts. These fees can vary depending on the type of contract and the trading volume. It's important to factor these fees into your profit and loss calculations to get an accurate picture of your net gains or losses.