How to calculate profit and loss on Bybit contracts?

Understanding Contract Profit and Loss on Bybit

Calculating profit and loss (P&L) on Bybit's contract trading platform requires understanding the difference between isolated margin and cross margin, as well as the distinction between realized and unrealized P&L. Bybit supports perpetual and inverse futures contracts, and each has its own method of P&L calculation depending on the underlying asset and settlement currency.

When trading USDT-margined contracts, profits and losses are denominated in USDT, while inverse contracts (BTCUSD, ETHUSD) calculate P&L in the base cryptocurrency (e.g., BTC). This is crucial because the value in fiat terms will fluctuate based on the current price of the base asset.

Components of P&L Calculation

To accurately compute P&L, traders must be familiar with the following components:

• Entry Price: The price at which the position was opened.
• Exit Price: The price at which the position is closed (for realized P&L).
• Position Size: Measured in USD value for USDT-margined contracts or in units of the base coin for inverse contracts.
• Leverage: While leverage doesn’t directly appear in the formula, it affects margin usage and liquidation levels, indirectly influencing net gains or losses.
• Funding Fees: Applicable in perpetual contracts; these periodic payments can increase or reduce net P&L depending on whether you are long or short.

For long positions, profit occurs when the exit price is higher than the entry price. For short positions, profit arises when the exit price is lower than the entry price.

Calculating Unrealized P&L for USDT-Margined Contracts

Unrealized P&L reflects the current profit or loss of an open position. On Bybit, this is updated in real time on the trading interface, but traders should know how it's derived.

For USDT-margined perpetual contracts, the formula is:

Unrealized P&L = (Current Mark Price – Entry Price) × Position Size in Contracts × Contract Multiplier

The contract multiplier for most USDT pairs is $1 per contract. For example, if you open a long position of 1,000 contracts of BTC/USDT at $60,000, and the current mark price is $62,000:

• Unrealized P&L = ($62,000 – $60,000) × 1,000 × $1 = $2,000

This value is displayed in USDT. If the position were short, the formula would reverse:

• Unrealized P&L = (Entry Price – Current Mark Price) × Position Size × Contract Multiplier

Calculating Realized P&L on Inverse Contracts

Inverse contracts, such as BTCUSD, are settled in BTC. This means P&L is calculated in the base cryptocurrency and then converted to USD value based on BTC’s price.

The formula for realized P&L in inverse contracts is:

Realized P&L = (1 / Entry Price – 1 / Exit Price) × Position Size in USD

Suppose you go long 10,000 USD worth of BTCUSD at $60,000 and close at $65,000:

• Realized P&L = (1/60,000 – 1/65,000) × 10,000
• = (0.0000166667 – 0.0000153846) × 10,000
• = 0.0000012821 × 10,000 = 0.012821 BTC

This amount is credited to your wallet in BTC. If the trade were a short, the formula would be:

Realized P&L = (1 / Exit Price – 1 / Entry Price) × Position Size in USD

Accounting for Fees and Funding Rates

To determine net profit or loss, traders must subtract trading fees and funding payments from gross P&L.

• Taker fees on Bybit are typically 0.075%, while maker fees are –0.025% (rebate).
• For a $10,000 trade as a taker, the fee is $7.50.
• Funding fees are paid or received every 8 hours. If you hold a long position when funding rate is positive, you pay the short side. This reduces net profit.

For example, if your gross profit is $500, but you paid $10 in taker fees and $15 in funding fees, your net P&L is $475.

These deductions are automatically applied by Bybit, but appear in the transaction history and P&L breakdown in the futures account.

Step-by-Step Guide to Manual P&L Verification

To manually verify your P&L on Bybit, follow these steps:

• Log into your Bybit account and navigate to the Futures section.
• Select the specific contract pair you traded (e.g., BTC/USDT).
• Check the position tab to find average entry price, position size, and current mark price.
• Use the unrealized P&L formula based on contract type (USDT-margined or inverse).
• For closed positions, go to Order History or Wallet > Transaction Records.
• Locate the realized P&L entry and compare it with your manual calculation.
• Include fees and funding from the funding fee history and trade fees sections.

Bybit’s P&L display is reliable, but manual checks help detect discrepancies, especially during high volatility or partial closures.

Frequently Asked Questions

What is the difference between mark price and last traded price in P&L calculation?Bybit uses the mark price to calculate unrealized P&L to prevent price manipulation and unfair liquidations. The last traded price reflects recent transactions but can be volatile. The mark price is derived from external index prices and funding rates, offering a more stable valuation.

Why is my realized P&L shown in BTC instead of USDT?This occurs when trading inverse contracts like BTCUSD. These contracts settle in BTC, so profits or losses are credited in BTC. USDT-margined contracts (e.g., BTC/USDT) always show P&L in USDT.

How does partial closing of a position affect P&L?When you partially close a position, Bybit calculates realized P&L based on the average entry price and the exit price of the closed portion. The remaining position continues to accrue unrealized P&L. Each partial closure is recorded separately in transaction history.

Where can I find a detailed breakdown of my P&L on Bybit?Go to Assets > Transaction History, filter by Futures, and select the relevant period. Each trade shows realized P&L, fee deduction, and funding payments. The Position panel also displays real-time unrealized P&L and liquidation price.