What is unrealized PnL in my Coinbase futures account?

Unrealized PnL in futures trading reflects gains or losses on open positions, updating in real time based on the mark price — it becomes realized only when you close the trade.

Jul 24, 2025 at 02:35 am

Understanding Unrealized PnL in Futures Trading

When you trade futures on Coinbase, your account displays both realized and unrealized profit and loss (PnL). Unrealized PnL refers to the gain or loss on open positions that have not yet been closed. This value fluctuates in real time as market prices change. For example, if you hold a long position in Bitcoin futures and the price rises above your entry point, your unrealized PnL becomes positive. Conversely, if the price drops below your entry, it turns negative. The key point is that this profit or loss remains "unrealized" until you close the position — at which point it becomes part of your available balance.

How Unrealized PnL Is Calculated

Coinbase uses a standard formula to compute unrealized PnL depending on your position type:

• For a long position:
  Unrealized PnL = (Current Mark Price - Entry Price) × Position Size
• For a short position:
  Unrealized PnL = (Entry Price - Current Mark Price) × Position Size
  

  The mark price is critical here — it’s not the last traded price but a fair value derived from the underlying index and funding rates. This prevents manipulation and ensures accurate PnL tracking. If your long ETH/USD futures contract was opened at $3,000 and the current mark price is $3,200 with a 1-contract position (say 1 ETH), your unrealized PnL is $200. This number updates continuously as the mark price shifts.

  Where to Find Unrealized PnL on Coinbase

  
  To locate your unrealized PnL:
• Log into your Coinbase account and navigate to the Futures tab.
• Under the “Positions” section, each open trade will show its current unrealized PnL.
• Look for a column labeled “Unrealized PnL” or “UPL” — values in green indicate gains, red indicates losses.
• Hovering over the value may reveal a breakdown including entry price, mark price, and position size.
  

  This visibility helps you monitor risk exposure. If your unrealized loss grows too large relative to your margin, you risk a liquidation event. Monitoring this in real time is essential for active traders.

  Difference Between Unrealized and Realized PnL

  
  Unrealized PnL only becomes realized when you close a position. Suppose you hold a BTC long with $500 in unrealized gains. If you close that trade, the $500 converts to realized PnL, and your wallet balance increases accordingly. Until then, it remains theoretical — subject to market movement. Realized PnL impacts your account equity permanently, while unrealized PnL is a dynamic snapshot of open trade performance. Coinbase updates both values in real time so you can track performance across active and completed trades.
  

  Impact of Leverage on Unrealized PnL

  
  Leverage amplifies both gains and losses in futures. If you open a 10x leveraged long position on BTC and the price moves 1% in your favor, your unrealized PnL increases by 10% of your margin. However, a 1% adverse move causes a 10% loss on your margin — potentially triggering a margin call or liquidation. Always check your leverage level under the position details. High leverage can make small price changes cause large swings in unrealized PnL, so risk management tools like stop-loss orders are vital.
  

  Frequently Asked Questions

  Can unrealized PnL go negative?
  
  Yes. If the market moves against your open position, your unrealized PnL becomes negative. This does not immediately affect your account balance but indicates potential loss if the position remains open.

  Does unrealized PnL affect my available margin?
  
  No. Unrealized PnL does not change your available margin until the position is closed. However, it affects your maintenance margin requirement, which determines liquidation risk.

  Why is my unrealized PnL different from what I calculated manually?
  
  Ensure you’re using the mark price, not the last traded price. Also verify your position size and entry price match Coinbase’s records. Discrepancies often arise from using incorrect price sources or rounding differences in contract multipliers.

  Is unrealized PnL taxable?
  
  No. Tax authorities treat unrealized PnL as non-taxable because no transaction has occurred. Only realized PnL from closed positions is reportable for tax purposes in most jurisdictions. Consult a tax professional for specific guidance.