What is the difference between realized and unrealized PNL on KuCoin?

Understanding Realized and Unrealized PNL on KuCoin

When trading on KuCoin, especially in futures and perpetual contracts, understanding the distinction between realized and unrealized PNL is essential for managing risk and tracking performance. These terms refer to two different stages of profit and loss measurement. The unrealized PNL reflects the current value of open positions based on the latest market price, while the realized PNL accounts for profits or losses that have been locked in after closing a position.

What Is Unrealized PNL?

Unrealized PNL is the theoretical profit or loss of a currently open position. It changes in real time as the market price fluctuates. Since the position remains open, this PNL is not yet confirmed and can increase or decrease. On KuCoin, when you hold a long or short position in futures trading, the unrealized PNL is calculated based on the difference between your entry price and the current mark price.

• The formula for long positions is:(Current Mark Price - Entry Price) × Position Size

• The formula for short positions is:(Entry Price - Current Mark Price) × Position Size

This value is displayed in your futures account dashboard under the Positions tab. It is important to note that unrealized PNL does not affect your available balance until the position is closed. The mark price, not the last traded price, is used to prevent manipulation and ensure fairness.

What Is Realized PNL?

Realized PNL refers to the actual profit or loss that occurs when you close a position. Once a trade is settled, the PNL is 'realized' and added or subtracted from your wallet balance. This value is final and reflects the net outcome of the completed trade.

For example, if you open a long position at $10,000 and close it at $11,000, your realized PNL will reflect the $1,000 profit (minus fees and funding rates, if applicable). On KuCoin, this appears in your Transaction History or Income Records under the futures section.

• Realized PNL includes:
  • Profits or losses from closing positions
  • Funding fees paid or received
  • Liquidation events
  • ADL (Auto-Deleveraging) settlements

Unlike unrealized PNL, realized PNL directly impacts your account equity and can be withdrawn or used for new trades.

How KuCoin Displays PNL in the Interface

KuCoin’s futures trading interface clearly separates realized and unrealized PNL to help traders monitor their performance.

• In the Positions tab:

  • Unrealized PNL is shown next to each open position
  • It updates dynamically with market movements
  • Displayed in both USDT (or quote currency) and percentage form

• In the Assets or Income section:

  • Realized PNL is logged as individual entries
  • Each closed trade contributes to cumulative realized gains or losses
  • You can filter by date, symbol, or income type (e.g., PNL, funding fee)

To access this data:

• Log in to your KuCoin account
• Navigate to Futures Trading
• Click on Positions to view open trades and unrealized PNL
• Go to Account → Income to see historical realized PNL

The system uses cross-margin or isolated-margin settings to calculate PNL, depending on your margin mode. Ensure you understand which mode you're using, as it affects liquidation levels and PNL calculation.

Impact of Funding Rates on PNL

In perpetual contracts on KuCoin, funding rates play a crucial role in both realized and unrealized PNL. Funding is exchanged between long and short traders every 8 hours to align the contract price with the spot market.

• If you hold a long position when funding rate is positive, you pay the funding fee
• If you hold a short position during positive funding, you receive the fee

These fees are deducted or added at the funding timestamp and appear as realized PNL in your income history. Even if your position remains open, funding payments affect your effective entry price and thus influence unrealized PNL over time.

To check upcoming funding times:

• Look at the funding countdown on the trading interface
• View past funding records under Income → Filter by 'Funding Fee'
• Rates are published every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC

Ignoring funding costs can distort your perception of unrealized gains, especially in long-term holds.

Common Misunderstandings About PNL on KuCoin

Many users confuse mark price with last price when evaluating unrealized PNL. KuCoin uses mark price to calculate unrealized PNL to prevent price manipulation during volatility. The mark price is derived from external index prices and funding rates, making it more reliable than the last traded price.

Another misconception is that realized PNL includes entry and exit fees. While trading fees (taker/maker) are deducted from your wallet, they are recorded separately in the Fee section, not directly in PNL. However, they reduce your net profit.

Some traders also assume that partial closures realize PNL proportionally. This is correct. If you close 50% of a position, 50% of the total PNL (based on entry vs. exit price) is realized. KuCoin calculates this automatically using FIFO (First In, First Out) logic.

Frequently Asked Questions

Q: Can unrealized PNL become negative on KuCoin?Yes. If the market moves against your position, unrealized PNL turns negative, indicating a paper loss. For example, a long position opened at $50,000 will show negative PNL if the mark price drops to $48,000. This affects your margin balance and may trigger liquidation if equity falls below maintenance levels.

Q: Where can I find a history of my realized PNL on KuCoin?Go to Futures Account → Account → Income. Use the filter to select 'Realized PNL'. You can export data by date range. Each entry shows the symbol, amount, time, and transaction ID.

Q: Does unrealized PNL affect my available balance for new trades?No. Unrealized PNL does not increase your usable balance. Only realized PNL adds to your equity. However, unrealized PNL contributes to your total account equity, which determines margin availability in cross-margin mode.

Q: How does KuCoin handle PNL when a position is liquidated?Upon liquidation, the system closes your position at the liquidation price. The realized PNL is calculated based on entry vs. liquidation price. Any remaining margin may be partially lost due to insurance fund deductions or ADL. The result appears in Income as a negative realized PNL entry.