How to calculate profit and loss on KuCoin Futures?

KuCoin Futures P&L depends on contract type—USDT-margined profits are in USDT, coin-margined in the base crypto—so use the right formula and include fees, funding, and mark price for accuracy.

Jul 24, 2025 at 05:56 am

Understanding KuCoin Futures Contracts

To calculate profit and loss (P&L) on KuCoin Futures, users must first understand the structure of the contracts. KuCoin offers both USDT-margined and coin-margined futures contracts. The type of contract determines how P&L is calculated. For USDT-margined contracts, profits and losses are denominated in USDT, regardless of the underlying asset. For coin-margined contracts, P&L is denominated in the base cryptocurrency — for example, BTC/USD contracts will have P&L in BTC. This distinction is crucial because it affects settlement and the final realized value.

Key Terms in Futures P&L Calculation

Before diving into the math, familiarize yourself with these terms:

• Entry Price: The price at which you open a position.
• Exit Price: The price at which you close the position.
• Position Size: The quantity of the asset held in the contract.
• Leverage: Magnifies both gains and losses; e.g., 10x leverage means a 1% move in price results in a 10% change in P&L.

• Mark Price: Used to calculate unrealized P&L to prevent manipulation; it’s derived from external price oracles.
  

  Each of these plays a role in determining whether your trade is profitable. Misunderstanding any one can lead to inaccurate calculations. For instance, using the last traded price instead of the mark price for unrealized P&L may give misleading results during volatile periods.

  Calculating Unrealized P&L

  
  Unrealized P&L reflects the current profit or loss while a position remains open. For USDT-margined contracts, use this formula:

  Unrealized P&L = Position Size × (Mark Price - Entry Price) × Direction

• Direction is +1 for long positions and -1 for short positions.
  

  For coin-margined contracts, the formula is:

  Unrealized P&L = Position Size × (1 / Entry Price - 1 / Mark Price) × Direction

  This accounts for the inverse relationship when the P&L currency differs from the quote currency. For example, if you’re long 1 BTC/USD at $50,000 and the mark price is $55,000, your unrealized P&L is +0.00909 BTC — not in USDT.

  Step-by-Step Realized P&L Calculation

  
  When you close a position, the realized P&L becomes final. Follow these steps:
• Determine the entry and exit prices from your trade history.
• Note the position size in contracts or base units.
• Identify the contract type (USDT or coin-margined).
• Apply the correct formula based on contract type.
  

  For a USDT-margined long position:

  • Entry Price: $50,000
  • Exit Price: $52,000
  • Position Size: 0.1 BTC
  • Realized P&L = 0.1 × (52,000 - 50,000) = $200

  For a coin-margined short position:

  • Entry Price: $50,000
  • Exit Price: $48,000
  • Position Size: 1 BTC
  • Realized P&L = 1 × (1/50,000 - 1/48,000) = -0.0000833 BTC

  Accounting for Fees and Funding Rates

  
  Fees and funding rates must be subtracted from gross P&L to get net profit or loss. KuCoin charges a taker fee (when you close a position) and a maker fee (if you add liquidity). These are typically between 0.02% and 0.06%. Funding rates, paid every 8 hours, can be positive or negative depending on market conditions. If you hold a long position and funding is positive, you pay the rate; if negative, you receive it. For example, if your gross profit is $200 and taker fee is 0.05%, your fee is **$0.10. If funding cost over the holding period is $2, net P&L becomes **$197.90.
  

  Using KuCoin’s Interface to Verify Calculations

  
  KuCoin provides a detailed trade history and position tab. To verify:
• Go to Futures > Positions to see current unrealized P&L.
• Click on a closed position in Trade History to view realized P&L, fees, and funding paid/received.
• Compare your manual calculation with the platform’s value. Discrepancies often arise from using incorrect mark prices or missing funding payments. Always cross-check the exact timestamps of entry and exit to ensure accurate fee and funding calculations.
  

  Frequently Asked Questions

  Q: Why does my manual P&L differ from KuCoin’s displayed P&L?
  
  This often occurs due to using the wrong price (e.g., last traded instead of mark price) or omitting funding payments. Also, ensure you’re using the correct contract type formula — USDT vs. coin-margined calculations differ significantly.

  Q: How do I find the funding rate history for a specific trade?
  
  In KuCoin’s Futures interface, go to the contract’s detail page and click Funding History. You can filter by date range to see all funding payments/received during your position’s lifespan.

  Q: Are realized P&L values shown in my wallet automatically?
  
  Yes. Once a position is closed, the realized P&L (after fees and funding) is immediately reflected in your Futures wallet balance. No manual action is needed to “claim” profits.

  Q: Can I calculate P&L for partial position closures?
  
  Yes. Treat each partial closure as a separate trade. For example, if you close 50% of a 0.2 BTC position at $52,000, calculate P&L for 0.1 BTC only. Repeat for each partial close using the respective exit price and size.