How to calculate profit and loss on Gate.io futures?

Understanding Futures Trading on Gate.io

Futures trading on Gate.io allows users to speculate on the price movement of cryptocurrencies without owning the underlying asset. Unlike spot trading, futures involve contracts with leverage, meaning small price changes can result in significant gains or losses. To accurately calculate profit and loss (P&L), traders must understand key terms like entry price, exit price, position size, leverage, and contract type (inverse or linear). Each of these variables directly impacts the final P&L outcome, and misinterpreting any one can lead to incorrect calculations.

Identifying Position Type: Long vs Short

Before calculating P&L, determine whether your position is long (betting the price will rise) or short (betting the price will fall).

• For a long position, profit occurs when the exit price is higher than the entry price.

• For a short position, profit occurs when the exit price is lower than the entry price.

  The direction of your trade dictates the formula structure. For example, if you opened a long position at $30,000 for BTC and closed at $32,000, your profit is based on that $2,000 difference. If it were a short position, the same price movement would result in a loss. Always verify your position type in the order history or active positions tab on Gate.io.

  Calculating P&L for Linear Futures Contracts

  Gate.io offers both linear and inverse futures. For linear contracts (quoted and settled in USDT), the P&L formula is straightforward:

  P&L = (Exit Price - Entry Price) × Position Size

• Position Size = Number of contracts × Contract Notional Value

• For BTC/USDT linear futures, each contract is typically 0.001 BTC.

  Suppose you buy 10 contracts of BTC/USDT at $30,000 and sell at $32,000:

  • Position Size = 10 × 0.001 = 0.01 BTC
  • P&L = ($32,000 - $30,000) × 0.01 = $200

  This calculation excludes fees and funding rates, which must be subtracted separately for net P&L.

  Calculating P&L for Inverse Futures Contracts

  Inverse contracts (settled in cryptocurrency, e.g., BTC) use a different formula:

  P&L = Position Size × (1 / Entry Price - 1 / Exit Price)

• Position Size = Number of contracts × Contract Value (in USD)
• For BTC/USD inverse futures, each contract is often $1.

  If you short 100 contracts at $30,000 and close at $28,000:

  • Position Size = 100 × $1 = $100
  • P&L = $100 × (1/30,000 - 1/28,000) = $100 × (-0.00000238) ≈ -0.000238 BTC
  • Convert to USDT: 0.000238 × $28,000 ≈ $6.66 loss

  This method accounts for the inverse relationship between price and value in crypto-settled contracts.

  Accounting for Fees and Funding Rates

  Gate.io charges taker and maker fees per trade, typically 0.02%–0.06%. These must be subtracted from gross P&L:
• Taker Fee = Trade Value × Taker Rate
• Maker Fee = Trade Value × Maker Rate

  Funding rates, paid every 8 hours, also affect P&L:

  • If you hold a long position during positive funding, you pay the rate.
  • If you hold a short during positive funding, you receive it.

  To compute net P&L:

  • Net P&L = Gross P&L - Opening Fee - Closing Fee ± Funding Paid/Received

  For example, a $200 gross profit with $2 opening fee, $2 closing fee, and $1 funding paid results in $195 net profit.

  Step-by-Step Manual Calculation Example

• Open a long position: 5 BTC/USDT linear contracts at $25,000
• Close at $27,000
• Taker fee: 0.06% per trade
• No funding involved
  • Position Size = 5 × 0.001 = 0.005 BTC
  • Gross P&L = ($27,000 - $25,000) × 0.005 = $10
  • Opening Fee = $25,000 × 0.005 × 0.0006 = $0.075
  • Closing Fee = $27,000 × 0.005 × 0.0006 = $0.081
  • Net P&L = $10 - $0.075 - $0.081 = $9.844

  This breakdown ensures accuracy when verifying Gate.io’s auto-calculated P&L.

  Frequently Asked Questions

  How do I find my entry and exit prices on Gate.io?Check the 'Futures Orders' or 'Trade History' section. Each filled order shows the exact price. For partial closes, average the exit prices weighted by volume.

  Why does my calculated P&L differ from Gate.io’s dashboard?The platform includes real-time funding, fees, and liquidation adjustments. Manually calculated P&L may miss fractional funding payments or slippage during execution.

  Can I calculate P&L for open positions?Yes. Use the current mark price instead of exit price. For linear: (Mark Price - Entry Price) × Position Size. This gives unrealized P&L, which changes with market price.

  Is P&L calculation different for cross vs isolated margin?No. The math remains identical. Margin mode affects liquidation risk, not P&L computation. Profits and losses are calculated the same way regardless of margin type.