How to calculate profit and loss (PnL) for Coinbase futures?

To calculate PnL on Coinbase Futures, subtract entry price from mark (unrealized) or exit (realized) price, multiply by contract size and number of contracts, then deduct fees and funding.

Jul 25, 2025 at 09:22 am

Understanding Coinbase Futures Contracts

To calculate profit and loss (PnL) for Coinbase futures, it's essential to first understand how futures contracts work on this platform. Futures are derivative instruments that allow traders to speculate on the future price of an asset—like Bitcoin or Ethereum—without owning the underlying asset. Each contract has a contract size, which determines how much of the asset each contract represents. For example, a BTC-USD futures contract might represent 0.001 BTC. Knowing this value is critical because it directly impacts how much your position changes in dollar terms when the price moves.

Mark Price vs. Entry Price

The foundation of PnL calculation lies in comparing two key prices: the entry price (the price at which you opened the position) and the mark price (the current fair value of the contract, used to prevent manipulation). If you're long (bought), your unrealized PnL increases when the mark price rises above your entry price. If you're short (sold), your unrealized PnL improves when the mark price falls below your entry price. The formula for unrealized PnL in USD is:

• For long positions:
  Unrealized PnL = (Mark Price - Entry Price) × Contract Size × Number of Contracts
• For short positions:
  Unrealized PnL = (Entry Price - Mark Price) × Contract Size × Number of Contracts

This calculation happens in real time on Coinbase Futures' interface, but understanding it manually helps verify accuracy.

Realized PnL: Closing a Position

When you close a futures position, your profit or loss becomes realized. This occurs when you take an opposite trade to your original position—for example, selling the same number of contracts you initially bought. The realized PnL formula is the same as above, but instead of using the mark price, you use the exit price (the actual price at which you closed the trade). For instance:

• If you opened a long position at $30,000 per BTC and closed at $32,000, with 10 contracts of 0.001 BTC each:
  • Realized PnL = ($32,000 - $30,000) × 0.001 × 10 = $200

This is the actual amount credited or debited from your futures wallet.

Handling Fees and Funding Rates

Coinbase Futures charges two types of fees that affect net PnL: taker/maker fees and funding rates. Taker fees apply when you close a position using a market order; maker fees apply if you place a limit order that gets filled by others. These fees are typically small percentages (e.g., 0.02% to 0.05%) but must be subtracted from gross PnL. Funding rates are periodic payments between long and short traders to keep futures prices aligned with spot prices. If you hold a position during a funding interval:

• You may pay or receive funding based on the rate and your position size
• This amount appears in your transaction history under "Funding Payments"
• It must be added or subtracted from your gross PnL to get the net PnL

For example, if you earned $100 in gross profit but paid $5 in taker fees and $2 in funding, your net PnL is $93.

Step-by-Step Manual Calculation Example

Let’s walk through a full example for clarity:

• You open a long position: 5 BTC-USD futures contracts at $28,000 each
• Contract size = 0.001 BTC
• You close at $30,000
• Taker fee = 0.04% of the trade value
• Funding paid during holding = $1.50

Steps:

• Calculate gross profit:
  ($30,000 - $28,000) × 0.001 × 5 = $10
• Calculate taker fee:
  0.04% × ($30,000 × 0.001 × 5) = $0.06
• Subtract fees and funding:
  $10 - $0.06 - $1.50 = $8.44

Your final net PnL is $8.44. This process ensures accuracy even if the platform interface lags or shows discrepancies.

FAQs

Q: Does Coinbase Futures show unrealized PnL in real time?

Yes, the platform displays unrealized PnL dynamically based on the latest mark price. This value updates continuously and is visible in your positions tab. However, remember that it does not include fees or funding yet—those are only applied upon closing or at funding intervals.

Q: What happens if I don’t close my position before expiration?

Coinbase Futures uses a cash-settled system. If you hold a position until expiry, it will be automatically closed at the settlement price. Your PnL will be calculated using this price instead of your exit price, so ensure you understand the settlement mechanism for your contract type.

Q: Can I calculate PnL for multiple positions at once?

Yes. For multiple open positions in the same asset, calculate each one separately using its entry and mark prices, then sum the results. Be cautious: if positions have different leverage or sizes, they must be calculated individually—aggregating them incorrectly can lead to misleading PnL figures.

Q: How do I access my funding payment history on Coinbase?

Go to your futures wallet, click “Transaction History,” and filter by “Funding Payments.” Each entry shows the time, rate, and amount paid or received. This is essential for reconciling your net PnL over time.